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Home / New Zealand

Lotto prices up, chances down

26 Jul, 2004 11:01 AM4 mins to read

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By AINSLEY THOMSON

Lotto tickets will cost 20 per cent more and players will have less chance of winning under changes to the game.

But those who do win are likely to get more money.

The changes to Lotto are the biggest overhaul of the game since it began 17 years ago.

The price
will rise from 50c per Lotto line to 60c and a Lucky Dip ticket will cost $6. A Power Dip will be $11.

The guaranteed millionaire will be removed. The first division, which will be at least $1 million a week, will be shared equally between winners, and will jackpot if not won.

The changes mean there will also be about 27,000 fewer winners each week.

The Lotteries Commission said that although there would be fewer winners, those who did win would get better prizes.

Spokeswoman Helen Morgan-Banda said the second bonus ball was introduced in 2002. This boosted the number of winners to about 79,000 a week, but most of them were only getting $10.

She said research had shown the $10 prizes were unpopular with players, so the second bonus ball has been scrapped.

Winners in the sixth division would get $24 instead of $10.

"So now we will be going down to 52,000 winners [each week] but people will be winning better prizes."

Ms Morgan-Banda said the prize pool would not be larger but would be divided differently.

The commission said the 20 per cent price rise was the first time since the game started in 1987 that the price of a ticket had risen. The consumers price index had risen 55 per cent over the same period.

The 2002 changes, which included the guaranteed millionaire and the second bonus ball, were the commission's attempt to reverse three years of declining revenue, which had resulted in $19 million less for charities. But players complained that the game had become too complicated.

The latest changes were an attempt to simplify the game and draw back punters in an increasingly competitive market.

Dr Judi McWhirter, a lecturer at Waikato University's statistics department, said the changes effectively undid those made in 2002 and would return Lotto to its traditional form.

She said it would make it harder to be a winner, but because there were fewer winners the payout would be higher.

The odds of winning the first division remained the same, but it would be harder to win in division two, four and six - which is why the prizes in those divisions would increase.

She said it was a matter of opinion whether the changes were good or bad.

A new "live game feature" will also be introduced that will give all ticket holders another chance to win $1 million or other prizes.

Commission chief executive Trevor Hall said increasing the price of tickets meant players could have the opportunity to win the extra million in the live game feature and get better prizes in other divisions.

"Improving the game will keep people playing," Mr Hall said, "meaning we can continue to return well in excess of $100 million back to New Zealand communities every year."

An advertising campaign began yesterday to explain the changes to the close to one million New Zealanders who play the game each week. Details of the live game feature will be revealed next month.

Reaction from Lotto players spoken to by the Herald last night was mixed.

"I'm outraged," said 20-year-old Canterbury University student James Smith. "They spend $15 million on advertising so why do they need to raise the price?"

Grey Lynn student Antoinette Afitu said it would also make her think twice about buying a ticket.Others were more philosophical.

"I don't buy a ticket to win $24. I buy a ticket to win a million," said Auckland businessman Alf Jamieson.

His friend, artist John Radford, said the 20 per cent increase would not stop him buying a lucky dip once or twice a year. "Anything where you gamble your money is a mug's game and I'm a mug."

- Additional reporting by Juliet Rowan

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