MW The Mega Millions jackpot is nearing $1 billion - but that's not the only reason lottery sales could see a holiday spike
By Charles Passy
Christmas also fuels one form of lottery playing in particular
Some may be dreaming of a white Christmas. But for many Americans, this holiday season is also all about lottery wishes.
The Mega Millions jackpot stands at a jolly $862 million ahead of Friday night's drawing. That makes it the largest such prize for either of the two big multistate lottery games - Mega Millions and Powerball - in the holiday-filled month of December, according to data compiled by LottoReport.com.
Friday's drawing will take place at 11 p.m. Eastern time, according to the Mega Millions website. As of Friday afternoon, the lump-sum payout was set for $392.1 million.
Large jackpots naturally result in a dramatic spike in ticket sales, especially as the figure gets closer to or surpasses the $1 billion mark. If no one wins the jackpot Friday night, there's expectation that the next drawing, set for Tuesday - yes, Christmas Eve - could indeed see a $1 billion prize.
That figure could grow well beyond $1 billion in the days and weeks ahead, too, if the jackpot winless streak continues. The biggest jackpot in U.S. lottery history was a Powerball prize worth $2.04 billion for a drawing held Nov. 7, 2022.
The current Mega Millions jackpot isn't the only reason for growing lottery buzz this season. There's also the fact that many people buy instant lottery tickets, as in scratch-off games (or "scratchers") as gifts this time of year, especially as stocking stuffers.
Victor Matheson, an economics professor at the College of the Holy Cross in Worcester, Mass., who tracks the lottery industry, said sales of those scratch-off games typically see a 5% to 10% boost around the December holidays.
Count Jenny McIntosh among those caught up in the current seasonal lottery fervor. The Phoenix-area public-relations executive likes to buy scratch-off tickets as gifts, but said she's going especially big this year. Regardless of what happens with the jackpot in the coming days, she said, she plans to purchase about $50 worth of scratchers and Mega Millions tickets for each of several family members.
"It's the excitement. It's the possibilities," McIntosh said of why she's committing so much of her gift budget to lottery games.
McIntosh admits that in the past, her lottery gifts haven't resulted in any major prizes for the recipients. And the odds certainly aren't great for winning a Mega Millions jackpot: They work out to about 1 in 303 million.
Another factor that could fuel a December surge in lottery sales: the rise of mobile lottery apps such as Jackpocket.com and Jackpot.com, which allow buyers to purchase tickets without having to head to a physical lottery retailer.
Jackpocket.com has become a particularly dominant force in this regard. It's now available in 17 states, plus Puerto Rico and Washington, D.C. The sports-betting giant DraftKings $(DKNG)$ acquired the company earlier this year for $750 million.
Regardless of jackpot sizes, Peter Sullivan, a DraftKings senior vice president, said there's inevitably more interest in lottery games in December. "The holiday season often brings a festive spirit that can influence lottery-ticket sales," he said.
Akshay Khanna, the chief executive and co-founder of Jackpot.com, doesn't disagree. His platform, which is available in seven states, also offers gift cards, and Khanna said sales are strong this year for that holiday option.
Yet given the long odds of winning anything significant, said Dawn Nettles, the publisher of LottoReport.com, lottery tickets shouldn't be thought of as holiday gifts.
"That's a complete waste of money," she said.
So rather than banking on becoming a billionaire overnight, consider gifts recommended by financial experts to help your loved ones build wealth, whether your budget is $100 or $1 million.
-Charles Passy
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(END) Dow Jones Newswires
December 20, 2024 12:51 ET (17:51 GMT)
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