'Gamblers' fallacy': How we were sold the fiction of 'lucky' Lotto stores
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Lotto used to claim that some of its stores were lucky, but it's a myth. The company will no longer use the term 'lucky' in its press releases. Gambling expert Maria Bellinger says it encourages people to spend more. Lotto's top 10 money-making stores also sold the most tickets. RNZ obtained a list of the top ten money making stores. They were the ones that sold most lottery tickets, so they were more likely to sell winners. It's not a coincidence that the stores that were named as lucky sold more tickets as well. A Lottos spokesperson said it was a light-hearted joke.
Jess spent $100,000 on Lotto's Instant Kiwi tickets over a decade. She is now an addict. Lottos spends millions on advertising and promotion. It launched Kiwis Helping Kiwises platform to raise awareness of the link between the purchase of Lotos products and community funding. The challenge for Lettos is that they have no information about the financial circumstances of their customers. Lttos are trained to look for signs of problem gambling. They are encouraged to use a Problem Gambling Envelope. This is to minimise "conflict or embarrassment on behalf of either party".
Instant Kiwi is Lotto's highest-risk product. It is the only one with an age restriction. The main risk factors are the ability to play continuously with unlimited purchases allowed per transaction and that gamblers can pay by credit card. Britain banned the use of credit cards for online gambling in 2020. Internal Affairs Minister Jan Tinetti says New Zealand could follow suit. Lottos' Chris Lyman says the company will be guided by the Government.
Simply Fresh's food sales go down when the Lotto Powerball jackpot goes up. The Power Ball jackpots account for 86% of Lottos revenue in 2020. Lottery documents show that online visits to its responsible gambling pages increase when a big jack pot is up for grabs.
Problem gambling is a silent giant in New Zealand. 22 per cent of New Zealander aged 15 or older are affected by it. The four big players contribute to a levy to provide help for problem gamblers. This year the gambling levy was set at $76 million to cover the cost of the harm over the next three years. Lotto is the most popular form of gambling. In 2020 513 people named Lottos as a source of their problem. 90 per Cent of people with gambling problems don't seek help. . It's easier to hide gambling addiction than alcohol or drugs.
Lotto has an 'At Risk Retailer' programme to monitor high staff spending at Lotto outlets. Some staff spend more than $5000 a month on Lottos. Five per cent of Lotos' retail stores considered to be at risk. LOTO considers gambling at its stores to have a higher risk than customers. David Smolenski, co-owner of the top-selling Richmond Night 'n Day store, wants to clarify the definition of staff gambling. He doesn't see himself at any risk of gambling harm.
Jess has been gambling for a long time. She's been in therapy for 3 years and she's still ashamed. Jess is angry about Lotto and believes it's a con. She has money in the bank and bought a new car last year.
