does the lottery industry thrive during recession?

[sleepfirefly]

during an economic downturn, people do not have a lot of money
to use for gambling but what they also have is hopeful dreams of
getting out of poverty and hitting the lottery which is why the lottery industry
may be the only one thriving during economic recession

might start thinking about a lottery business once i notice signs of
an economic downturn

[noorman0]

Did even a fifth of the world's population compressed their financial stress on lottery tickets during the recession? Or, if we ignore macroeconomic conditions, how many people were hoping to escape poverty when they bought lottery tickets?

These are lottery participation statistics that also summarizes the COVID-19 recession from mid-Q1 2020 (February) to Q1 2021.

source

Lottery participation averaged 34 percent over the tracking period. Participation remained relatively consistent over the period, with the only significant increase of 36 percent in Quarter 1 2016. A slight downwards trend was seen with the outbreak of Covid-19 cumulating with a low of 32 percent participation in Quarter 1 2021.

Participation rates were relatively similar by gender across the period, with 35 percent of men and 34 percent of women purchasing lottery tickets. Women’s participation remained stable during the Covid-19 period, with men predominantly driving the overall decreases seen in 2020 and beginning of 2021.

[Questat]

Yes, in fact, in poorer countries where people are struggling financially, the more they gamble on the lottery hoping they’ll hit the jackpot and solve their problems. Even in the gambling industry as a whole, the economic condition doesn’t really affect profitability. If anything, the more people struggle, the more they tend to gamble.

[viljy]

It is during such periods that the best conditions for lottery, gambling, and sports betting develop. Because people who have lost their jobs or gone bankrupt are grasping at any way to improve their financial situation. By the way, why do many different fortune tellers, psychics, and coaches appear during periods of recession and economic cataclysms? For the same reason. They gain a massive audience of disillusioned people who are looking for a wonderful way to improve their financial situation to their previous level.

The global economy is currently on the verge of a major crisis. Including those related to the reformatting of the labor market due to the introduction of AI. That's why the gambling industry is booming right now. And there will be even more, despite the high competition in the industry. The same applies to lotteries.

[fruktik]

during an economic downturn, people do not have a lot of money
to use for gambling but what they also have is hopeful dreams of
getting out of poverty and hitting the lottery which is why the lottery industry
may be the only one thriving during economic recession

might start thinking about a lottery business once i notice signs of
an economic downturn

What exactly do you mean by lottery business? Are you going to issue the tickets yourself? Do you have that right, a license? As far as I know, it's best not to mess around with that in my country. Only the state has the right to issue lottery tickets. It has a complete monopoly on it. Anything else is strictly punishable by law and the threat of years in prison.

If you're implying you can make money from this, you're seriously mistaken. During a recession, only the government profits from the lottery, fleecing the population to their last pennies.

[crwth]

It's a lottery as well. We all know that businesses include risks, and it could be somewhat of a gamble as well when you invest in that kind of thing. It would probably depend on your customers. Some people continue to buy lottery tickets during the pandemic.

[Cointxz]

during an economic downturn, people do not have a lot of money
to use for gambling but what they also have is hopeful dreams of
getting out of poverty and hitting the lottery which is why the lottery industry
may be the only one thriving during economic recession

might start thinking about a lottery business once i notice signs of
an economic downturn

I doubt the increase of lottery participants is high during the recession but the number will probably not affected since lottery ticket price is just cheap for the chance to win big.

People that bets on lottery regularly will still choose to try their luck in since this on cost a few bucks.

There’s a scandal in my country about lottery in the past that government is faking winners yet people doesn’t bother at all and still purchasing lottery tickets. This show how eager lottery players to bet and aim for the jackpot.

[danherbias07]

I don't think there's a down moment for the lottery industry. They are using people's money to make a jackpot prize, which means there's really no investment that happened. They are just hoarding the money to give it to one person, or maybe a few if there are two or more winners with the same numbers.

I highly doubt they will be affected by anything. So yes, if you want to make that kind of business, then do so. But if the government is already running a national lottery, I doubt they will let you run another.

[Lanatsa]

during an economic downturn, people do not have a lot of money
to use for gambling but what they also have is hopeful dreams of
getting out of poverty and hitting the lottery which is why the lottery industry
may be the only one thriving during economic recession

might start thinking about a lottery business once i notice signs of
an economic downturn

I doubt the increase of lottery participants is high during the recession but the number will probably not affected since lottery ticket price is just cheap for the chance to win big.

People that bets on lottery regularly will still choose to try their luck in since this on cost a few bucks.

There’s a scandal in my country about lottery in the past that government is faking winners yet people doesn’t bother at all and still purchasing lottery tickets. This show how eager lottery players to bet and aim for the jackpot.

Lotteries always seem to survive economic downturns because they sell something that people need the most during hard times hope the cost of a ticket is small enough that people convince themselves it’s worth the risk and even if they know the odds are terrible the dream of escaping poverty with one lucky win keeps them buying. It’s true that participation may not increase dramatically during a recession but it also doesn’t really drop because regular players will keep buying their tickets they see it as a small habit rather than a serious expense and for many it’s one of the few affordable forms of entertainment left when money is tight.

Even scandals or corruption don’t always stop people from playing because the emotional side of gambling outweighs logic the thought of maybe being the next winner even when chances are near zero is powerful enough to make people ignore how unfair or manipulated the system might be. Starting a lottery business during a downturn might actually work if done legally and transparently since people will always be drawn to the idea of easy money when the economy is struggling it’s one of those industries where optimism keeps the market alive even when everything else slows down.

[FinneysTrueVision]

It seems like you are worried about a recession with these threads you are starting. I do not have any hard statistics, but I would think people would be more prone to trying to use gambling as a means to solve their problems during hard economic times. Lotteries have a low entry cost and low operating costs so they might see greater benefits in comparison to other gambling businesses such as physical casinos.

[mindrust]

I think so. Recession raises unemployment and unemployed people are poor. Poor people like to dream a lot and buying a lottery ticket is one of the best ways to dream about the future. That means more lottery tickets sales. People will be eating less, drinking less, having less fun but they will never abandon their hope. Hope is what makes us strong. Hope is what makes us keep going. People who lose their hope do unimaginable things and that’s the worst thing that could happen to them. So lottery tickets actually act as a safety valve in that regard, they give people a reason to continue, a reason to wake up in the morning and check the results of the lottery that happened last night. I think I want to start a lottery company now. Would be a banger if I did.

[Fivestar4everMVP]

during an economic downturn, people do not have a lot of money
to use for gambling but what they also have is hopeful dreams of
getting out of poverty and hitting the lottery which is why the lottery industry
may be the only one thriving during economic recession

might start thinking about a lottery business once i notice signs of
an economic downturn

Well, and you may possibly end up being very disappointed because even if it's true that a lottery business may likely thrive during recession, what then happens after the recession is over? And how often does a recession happen anyway? It's a once in a while thing, like sometimes, it can take even up to 10 - 20 years before the world hit a major recession that could be felt by majorly everyone..

It a bad idea to start a business with this type of mindset bud, a business you start with this type of mindset may end up not lasting because you are likely to give up at the slightest challenge or problem you run into..
And I don't want to even talk about the fact that it takes already being super rich to start a lottery business, I believe the business can thrive any time, whether recession or not, but starting the business with your type of mindset is a wrong approach.

[ZeroVinsonN]

I think it's profitable for them either way, during economic recessions people are desperate and depressed so they will want to take advantage of any opportunity available for them to make it big as soon as possible and gambling presents that opportunity to them so they will most likely take it but in a better thriving economy they tend to have more to spare so they still gamble regardless, it's just extra cash after all so they can afford to lose it, if they win in the process then luck is simply on their side. People will always find a reason to gamble regardless of their current economic situation.

[Kelward]

During recessions many poor people who are hit hard will be desperately looking for a way out and at such points hope becomes what they have left. Lottery tickets are very cheap and they will want to buy and pray that they will win especially when they are hearing about how people have won life-changing amounts that will make them very rich. If you go to all the poor neighbourhoods you will see lots of lottery kiosks where both young and old are clustered and playing but i have not seen a lottery kiosks in rich neighborhoods before. From my observation majority of people that plays lottery are poor people.

[iBaba]

Yes, in fact, in poorer countries where people are struggling financially, the more they gamble on the lottery hoping they’ll hit the jackpot and solve their problems. Even in the gambling industry as a whole, the economic condition doesn’t really affect profitability. If anything, the more people struggle, the more they tend to gamble.

I have this believe that in tough times like recession people often turn to lottery more with the hope that one big win will help them to fix everything although this is not applicable to many other people but it will be more of those who are already in the lottery games.

It's a lottery as well. We all know that businesses include risks, and it could be somewhat of a gamble as well when you invest in that kind of thing. It would probably depend on your customers. Some people continue to buy lottery tickets during the pandemic.

If you are talking about business, yes, starting business is also like gambling too because you put your money, your time, your hope and yet there is no guarantee that you will win in the business and that is the same thing that applies to gambling. So you can call both business and lottery as gambling and to a large extent it sounds valid only that gambling is based on pure luck but in business, a proper plan will always lead to success however big or small.

[Betwrong]

during an economic downturn, people do not have a lot of money
to use for gambling but what they also have is hopeful dreams of
getting out of poverty and hitting the lottery which is why the lottery industry
may be the only one thriving during economic recession

might start thinking about a lottery business once i notice signs of
an economic downturn

Yeah, I think you might be right. In desperate times people, some people, turn to gambling, that's a fact, so, it's possible they'll be buying more lotteries. The price of one lottery ticket isn't that high - anyone can afford it,  and there's a chance to win really big. Selling all your possessions and buying as much lottery tickets as you can is stupid, but buying just one ticket for $5 isn't a bad idea, in my opinion.

[Gozie51]

might start thinking about a lottery business once i notice signs of
an economic downturn

You are not the only one that have thought about that, some people have tried it in the past. During hard times there are different types of lottery gimmicks that are showcased for the public to try and see if they can be lucky to win something to sustain themselves for that time, usually temporarily. While growing up, it was called "try your luck". Some where in form of cards where you have to choose a number from the card with some money as your ticket and hoping it will will you something big or bigger from the vendor. But the thing about the lottery games that I have witnessed is that the pull of those bets is usually won by either one person and the rest profit goes to the vendor. It is not really a true means to survival during recession. The real survival is to expect recession in the future and invest now.

[giammangiato]

The lottery is one of the most played games of all time, together with super-Enalotto (in Italy) it is estimated that only 36.6% do not play (data published on May 24, 2023).
Two years on, the figures are more or less similar, a slight increase in percentage.
It is certainly the game that allows a big win even with $1, so the great potential and great fame worldwide should not be underestimated.
The jackpot winning percentage is really very low, but the percentage of guessing even just two out of 5 numbers is interesting, for those who want to gamble it's a good reason to try for really little money.
My last play 5 numbers thus divided 0.4$ on both 0.2$ on terno 0.2$ quaterna 0.2$ cinquina, on all the wheels in play (if I guess 5 numbers it is 122,000$), my last play I guessed only 2 numbers out of 5 and only recovered the cost of the ticket.

[Fiatless]

During economic recession people would always seek for alternative means to make money.  And gambling is always one of the means by which people seek alternative income to cushion the effect of economic problems. But it would have been better for people to have jobs together rather than depending on gambling since the outcome is unpredictable.

[_act_]

Some people continue to buy lottery tickets during the pandemic.

I will expect more people to gamble more during pandemic because they are staying at home and not go for work. Work can reduce people from more gambling activities.

During economic recession people would always seek for alternative means to make money.  And gambling is always one of the means by which people seek alternative income to cushion the effect of economic problems. But it would have been better for people to have jobs together rather than depending on gambling since the outcome is unpredictable.

What I think is that it is better for people not to think of making money from gambling at all, even if they have job they should not think of making money from gambling because any wrong thinking can make them put the money they worked for on gambling and which is not good.