Some of you might think that most people who buy lottery tickets are poor people. Well, that’s not entirely true. The fact is, some studies on lottery found out that at least 56% of American adults ever bought a lottery ticket in the last 12 months. Among these people, those with $45,000 – $75,000 income are the most often to play the lottery. Around 60% of them played the lottery at least once in the past year. The study also revealed that people with less than $25,000 income would less likely play the lottery with 53% possibility. Furthermore, those with more than $75,000 income are most likely to play the lottery 3 times more often than those with $25,000 income.
Lately, some institutions have also been conducting research on people’s gambling behavior. Their discovery is quite stunning. They found out that being poor is not always necessarily linked with playing the lottery more often than other people. For example, there are 7% people in Colorado whose annual income is less than $15,000. Now, some of you might think these people play the lottery more often than those with higher income, but the fact is, they don’t. There are only 5% of them who played the lottery at least once in the past month.
In Georgia, a research performed by the Atlanta Journal and Constitution Survey made a shocking discovery. There are only 8.6% lottery players who have less than $24,000 income. Their population is lower than those with $50,000 – $74,000 annual income who make 27% of the population. Also, among these players, 33% of them never entered the college, 22% of them did not graduate the college, and only 25 % of them had at least one college degree. Meanwhile, there are only 10% of them who had one or more advanced degrees.
A 1998 study on Texas lottery players also revealed that players with low income and junior high school education or less were the least likely people to play. In the same year, another study performed on Minnesota lottery revealed that people with less than $21,000 annual income only made up less than 10% of lottery ticket buyers in 1997. It is people with more than $50,000 income who are more likely to play the game.
So, how people can benefit from selling the lottery tickets?
Let me spill you the secret. Just like any other business, the Pareto Principle also applies in the lottery. This principle clearly says that no matter what kind of service or product you sell, most of your sales (around 80%) will come from less than 25% of your customers. This is how the lottery works.
In Minnesota, for example, the study found out that it only needs 20% of all Minnesota lottery players to make up 71% of the industry’s income. Meanwhile, in Arizona, it takes 24% of the players to make 70% of Arizona lottery income. In Pennsylvania, the number increases to 29% of the players to make nearly 80% of local lottery income.
See? The number is much lower than you might have expected. You don’t actually need a lot of people to make the profit in the lottery. As long as you keep that profitable 30% of the population, money will keep flowing to your pocket, no matter what 🙂