Michigan Lottery Sales Dropping As Calls For Suspension Continue

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Written By Matt Schoch on April 22, 2020
Michigan Lottery

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Due to the severe impact of the COVID-19 pandemic, not a single wager will be made at any Michigan casino throughout the entire month of April.

Despite its status as an “essential” entity, the Michigan Lottery is also being affected due to the stay-at-home order imposed by Gov. Gretchen Whitmer, which prohibits non-essential travel.

Despite experiencing record-breaking numbers last year, the state’s lottery has recently faced a significant decrease of 31% in revenue amidst demands to halt competitions during the shutdown.

Calls continue for Michigan Lottery to be suspended

Earlier this month, state Rep. Mari Manoogian (D-Birmingham) and the Chaldean Chamber of Commerce made appeals to halt the lottery due to retailers with lottery sales not adhering to social distancing guidelines.

Earlier this month, during a press conference, Detroit Mayor Mike Duggan voiced his apprehension regarding lottery sales.

Duggan, as cited by the Detroit Free Press, expressed his concern about the crowded lines for purchasing lotto tickets. He emphasized the need to devise a solution to avoid clustering people together.

Online lottery sales have been available in the state since 2014, although they contribute only a minor portion to the overall revenue.

Only retailers offer games like Michigan Lottery Club Keno, Daily 3, Daily 4, $250,000 Keno, Lucky for Life, and Poker Lotto.

Michigan Lottery shuts down sales by some retailers

Despite stating her intentions in early April, Whitmer has yet to take any concrete action towards restricting lottery sales.

Retailers in Michigan are being given the option to deactivate their equipment during this period by the Michigan Lottery, and there will be no consequences for doing so.

On Wednesday, Spokesman Jake Harris informed Playinmichigan via email that sales have been suspended by over 950 retailers.

According to Harris, approximately 2,500 out of over 10,000 lottery retailers in the state are bars and restaurants. Furthermore, he mentioned that half of these establishments have not made any sales since March 17. During this time, the lottery revenue for this particular group has plummeted by 96%.

In an email sent on Monday, Manoogian expressed her satisfaction with the suspension of lottery services in certain retailers. However, she continues to advocate for a temporary complete prohibition.

Manoogian expressed concern that if lottery tickets continue to be sold in person at certain stores, people may gather there. She emphasized that this is not the desired outcome, and therefore urged Commissioner Brian Neill to completely suspend in-person sales until Michigan successfully eliminates the coronavirus.

Lottery numbers hurting during economic slowdown

Due to the statewide shutdown in mid-March to combat the new coronavirus, Michigan’s lottery experienced a decrease in revenue during that month.

According to state legislation, the entirety of the lottery’s earnings is directed towards the state’s school aid fund. In the month of March, the fund received a contribution of $75.3 million from the lottery, which represents a decrease of 31.5% compared to March 2019.

As we reach the halfway point of the 2019-20 fiscal year, lottery revenues have experienced a decline of 7.5% compared to the previous year, and it is anticipated that this downward trend will continue in the future.

According to Harris, lottery sales experienced a decline of approximately 31% from March 24 to Wednesday, in comparison to the corresponding period last year.

Michigan Lottery was posting record revenues

The state’s lottery had been thriving at unprecedented levels, but now the slowdown has arrived.

In fiscal year 2019, the lottery made a groundbreaking contribution of over $1 billion to the state’s school fund, marking a fifth consecutive year of record-breaking achievements. Additionally, total lottery sales soared to an unprecedented level of nearly $3.9 billion.

A historic amount of $287.6 million in commissions was distributed among lottery retailers, while players achieved an unprecedented record of receiving over $2.3 billion in prizes.

From its establishment in 1972 until September of the previous year, the lottery had contributed over $23.4 billion to the school aid fund.

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