It seems Powerball has lost its zip. The Wall Street Journal reports, “There were $152 million in nationwide sales for Saturday’s $829 million jackpot—a 25% decline from the $197 million in sales for another $825 million Powerball drawing on Oct. 29, 2022, according to Lottoreport.com, which tracks sales.”
The WSJ found an economist to weigh in with some words of wisdom: “’Everyone’s like, well, seen that, done that,’ says Victor Matheson, an economist at the College of the Holy Cross who studies lotteries. ‘Or, the more I play these billion-dollar jackpots, the more I realize that I’ve just thrown $2 away every time because I never win.’”
Really, suddenly the collective math and reasoning skills of lottery players has improved by 25%?
Another economist who studies lotteries (at least two too many that we know of) says people are just tired. Drawings have been increased from two to now three days and, “The added day has contributed to a degree of fatigue, “ said Kent Grote, an economist at Lake Forest College, who has studied state lotteries.
We’re to believe trudging to the corner convenience store for Powerball tickets in Professor Grote’s mind is the equivalent of the Bataan March.
The WSJ’s Anthony De Leon wrote that the Federal Reserve inflated jackpots with its rate hiking. The prize is based on the value of the money’s investment in a portfolio of bonds over 30 years. A $1 billion jackpot translates to $516.8 million before taxes should the winner choose the lump sum instead of receiving 30 years of annual payments.
The Hill.com reported in April, the U.S. government had collected 35% less in tax revenue this year than at the same time in 2022, citing a recent analysis released by Moody’s Analytics economists Mark Zandi and Bernard Yaros.
At the time, Zandi said receipts are “coming even weaker than” anticipated. They still are.
Jeffrey Snider posted a chart on twitter reflecting weak collections in May and June. Weak tax receipts reflect weak income.
Perhaps Powerball players are simply too broke to play.
