Virginia cashing in on change in lotto drawings

By Michael Felberbaum 

RICHMOND

The Virginia Lottery has scrapped its daily televised drawings in favor of the Internet, in a move to cut costs and recognize a shift in the way customers check their lottery numbers.

Last month, the lottery started Internet-only video streams of its daily and twice-a-week Win For Life drawings. The switch is expected to save more than $1 million next fiscal year in programming costs at a time when the state is seeking to overcome a $4 billion budget deficit, said Paula Otto, the lottery's executive director.

While the move was mostly a cost-saving measure, it's also a recognition that many players now look to the Internet to check their daily numbers.

"The Internet is actually a more popular way of people getting their numbers now," said Otto, who expects other states may follow Virginia's lead as they grapple with growing budget deficits.

So far, lottery officials say they've received a few complaints about the switch, mostly from older people who have no access to a computer.

Most states currently use a combination of TV broadcasts and Internet feeds for afternoon and evening drawings, according to an informal survey conducted by the Virginia Lottery. Most lotteries also have telephone hot lines and provide e-mail updates.

David Gale, executive director of the North American Association of State and Provincial Lotteries, said lotteries across the country are looking for ways to cut costs in the wake of state budget problems.

"State budgets are a mess," Gale said. "Forget about lottery budgets because they're probably holding their own to tell you the truth."

In many states, lottery profits provide needed revenue to pay for programs that benefit tourism, education and senior citizens.

Sujit CanagaRetna, a senior fiscal analyst for the Council of State Governments, said he hasn't heard of other states cutting the televised lottery broadcasts, but he's not surprised by Virginia's approach.

"States are looking at every possible way to corral some dollars together just to improve their bottom line," CanagaRetna said. "If you do a whole bunch of these little things, it could potentially add up to something significant."

Viewers, especially younger viewers, are shifting from television to Web-based programming, said Robert Thompson, a professor of television and popular culture at Syracuse University.

The number of people viewing online video increased 19 percent in 2009, according to comScore, an Internet marketing research firm. And nearly 86 percent of U.S. Internet users viewed online video in recent months.

Thompson said watching online videos doesn't necessarily come at the expense of regular TV viewing.

"Watching those live things was a way to get the information just as immediately as they possibly could," Thompson said. "The problem with the TV thing is that if you happen to be in the bathroom a minute too late, you miss it entirely."

The trend in the U.S. contrasts with viewing habits in Europe, where the televised drawings are still very important, said Paul Peinado, a spokesman for the World Lottery Association based in Switzerland.

"People anticipate it," Peinado said. "In many countries, the lottery is an old tradition."