This weekend’s Powerball jackpot was one of the largest in U.S. history. Last week, millions of hopefuls traded $2 for the extremely unlikely chance that they could win — maybe, somehow, eventually, possibly — either by hitting lottery-ticket apps or flocking to gas stations and convenience stores.
Two players, one in Missouri and one in Texas, won the $1.787 billion jackpot. And the traffic these big jackpots generate has an impact on the businesses that sell the tickets.
When you go into a convenience store to buy a ticket, the business makes about 5¢ to 6¢ per dollar and potentially earns your loyalty.
“When somebody is a lottery customer, they tend to buy about 50% more than the non-lottery customer,” said Jeff Lenard with the National Association of Convenience Stores.
When the jackpot hits $1 billion, traffic can spike, said Lenard. “It showcases the store to people who haven't been inside before.”
But online lottery retailers are growing: Jackpot.com reports it’s doing 5x to 10x the volume of the last billion-dollar prize.
Jonathan D. Cohen, who’s written extensively about gambling, said spikes in sales are basically a barometer “of people's feeling that they're stuck in their jobs, or that they don't have opportunity in the economy, or that they're economically insecure.”
Cohen added that he bought a ticket this time around. And so did Jeff Lenard, at a convenience store.