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Tuesday, Oct. 7, 2008 , 12:00 a.m.

Lottery sales weather economic downturn

Brenda Long said she was in too much of a hurry to buy lottery tickets at the Lotto Mart in South Pittsburg, Tenn., Monday, but that’s the only the reason she didn’t spend her weekly $10 on a longshot at fortune.

The faltering economy and higher gas prices are not causing her to modify her lottery habits, she said.

“I spend $5 a week on quick pick (Powerball tickets) and $5 a week on scratch-offs,” Ms. Long said. “It’s discretionary. It’s a choice, and I do it.”

Despite the economic slowdown, lottery sales in Georgia and Tennessee have continued to increase, according to representatives of the lottery corporations in both states.

Lottery ticket sales

2007 2008

Georgia $3.42 billion $3.52 billion

Tennessee $1.06 billion $1.07 billion

Sources: Georgia and Tennessee lottery corporations

ON THEWeb

www.galottery.com

www.tnlottery.com

“Georgia Lottery sales have been strong. However, as with any business, the economy has the potential to impact our sales,” Tandi Reddick, media relations manager for the Georgia Lottery Corp., said. “Most of our retailers are located at convenience stores, so anything affecting retailers selling gas will impact our business. Lottery tickets are an entertainment product, not a necessity.”

The Georgia Lottery’s fiscal year started July 1 and information for the first quarter of fiscal 2009 was not available, Ms. Reddick said. But sales for 2008 were up about $98 million from the previous year, Ms. Reddick said.

The Tennessee Lottery, which like Georgia includes a multistate game and a number of state-specific games, had increased sales by about $7 million from fiscal 2007 to the most recent full fiscal year, according to Kym Gerlock, vice president of communications for the Tennessee Lottery.

Despite the increased sales, the lotteries are affected by gas prices and other factors, the spokeswomen said.

Ms. Gerlock provided figures for the Chattanooga district, which includes 16 counties, for the first three months of fiscal year 2009, showing sales of $34.8 million, compared with $34.04 million for the same time period last year.

“The size of the jackpot for jackpot-driven games (Powerball, LottoPlus, Pick 5), the time of year, the day of the week, the weather, all that,” are factors in sales,” Ms. Gerlock said.

“The Tennessee Lottery is certainly feeling the impact of the high gas prices,” she said. “We compete for the discretionary dollar, and these dollars are stretched thinner than ever. While we closed this past fiscal year slightly ahead of the year prior, we think that our growth could have been much higher.”

Johnny Hargis, Lotto Mart clerk in South Pittsburg, did not have specific figures, but he said lottery sales are about the same as they were before Hurricane Gustav hampered refineries in Texas and triggered gasoline shortages around the region.

The Marion County, Tenn., store is second top seller in the Southeast Tennessee region, behind Mack’s Hiway Market in East Ridge, Ms. Gerlock said.

“My regulars come in and buy about the same amount of tickets,” Mr. Hargis said.

Mega Star Foods, on Alabama Highway in Ringgold, Ga., also didn’t release figures but overall, strong sales have continued, cashier Terrie McIntosh said.

“Our regular customers are still coming,” Ms. McIntosh said.

Truck driver Clayton Phillips, of Dalton, Ga., said he used to buy lottery tickets weekly, either in his home state or at the Lotto Mart in Marion County, along his route. But when gas zoomed to $4 a gallon and diesel even higher, he cut back, he said.

“I seldom play any more,” Mr. Phillips said Monday while grabbing a breakfast biscuit and a lottery ticket at Lotto Mart. “I occasionally buy a scratch off.”

The lotteries and retailers try to boost sales in many ways, representatives said. At the state level, the lottery corporations develop and market new games, Ms. Reddick and Ms. Gerlock said.

“We will continue to gain feedback from players and retailers and launch new and exciting products,” Ms. Gerlock said.

At the retail level, many store owners set up areas with tables for customers to sit and scratch game cards or fill out lotto slips, clerks said.

“We have one store that’s almost totally (dedicated) to lottery service,” Ms. McIntosh said.

Rock Spring, Ga., resident Kent Earlywine said he plays occasionally. The odds aren’t good enough for him, he said.

And, Marion County, Tenn., resident John Green said his play has declined. “When I was married, I used to buy quite a few tickets,” Mr. Green said. “Now, I’m divorced and I don’t buy any.”

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