How New Zealanders bought the Lotto dream
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Lotto's corporate communications team was on a roll. Year after year, as the Powerball jackpot ballooned out to more than $20 million, the press releases would go out and the story of the lucky Lotto stores would be picked up by media across the country.
Lotto used to claim that some of its stores were lucky, but it's a fiction. The company will no longer use the term "lucky" in its press releases. The research centre director Maria Bellringer says the lottery is random and encourages people to spend more. RNZ is investigating Lotto's media strategy. Look out for more next week. It's the fourth story in an investigative series on Lottos. They are called "How New Zealanders bought the Lotte dream". They will be published weekly. For more information, visit their website.
Jess spent $100,000 on Lotto's Instant Kiwi tickets over a decade. She is now an addict. Lottos spends millions on advertising and promoting its gambling products. It launched Kiwis Helping Kiwies platform to raise awareness of the link between the purchase of Lotos products and community funding. Lettos retailers are trained to look for signs of problem gambling. They are encouraged to use a Problem Gambling Envelope. The challenge for the 1340 L Lotters is that they have no information about the financial circumstances of their customers.
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 jackpot goes up. The Powerball jackpots account for 86% of Lottos revenue in 2020. Lotos' responsible gambling pages increase when a big jack pot is up for grabs. In August 2020, a $50m PowerBall 'Must Be Won Draw' saw the company sell 2000 tickets a minute in the run-up to the draw and 2.5 million tickets overall.
Problem gambling is a silent giant in New Zealand. 22% 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 $76m to cover the cost of the harm over the next three years. Lotto is the most popular form of gambling in the country. In 2020 513 people named Lottos as a source of their problem. 90% don't seek help. They might have lost their relationship, their homes, committed fraud or commit suicide before they seek treatment.
Lotto has developed an 'At Risk Retailer' programme to monitor high staff spending at Lotto outlets. Some staff spend more than $5000 a month on Lottos. Lotot considered 5% of its retail stores at “high risk”.
Lotto allows staff to gamble. David Smolenski, co-owner of the top-selling Richmond Night 'n Day store, wants more definition on the amount of money spent by staff. He has had staff from other stores buying tickets at his store. He doesn't see himself at 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. Now she doesn't gamble and has money in the bank and bought a new car. Gambling Helpline Aotearoa is available at 0800 654 655 or text 8006.
Gambling Helpline Aotearoa is available at 0800 654 655 or text 8006. Gambling Debt Helpler is at 656 657 and Youth Gambler Helper is 6 54 659.
