Cost of living crunch proves no match for lotto dream, as ticket sales climb $160m

WA’s crippling cost-of-living crunch has failed to deter West Australians from chasing a dream lotto win, with ticket sales soaring by $160 million last financial year.

Despite families admitting they have been forced to cut back on food, and others increasingly pessimistic about their futures, West Aussies are still buying tickets in record numbers, with one retailer saying syndicates were proving a popular option for those trying to save money.

Lotterywest’s annual report for last financial year — released in Parliament this week — shows spending on lotto tickets climbed by $40 per adult, up to an extra $584 each for the 12 months to June.

For most families, it works out at $11 per week — the price of a 13-game ticket in Saturday Lotto.

Ticket sales for Thursday and Tuesday Oz Lotto draws drove the increase to $1.38 billion, off the back of several jackpots, including a record $200m Powerball draw in February. The WA spend in 2022-23 was $1.22b — $160m less, despite more cost-of-living pressure over that period.

Powerball tickets proved the most popular — with $494m in sales last financial year — while the traditional major weekly draw, Saturday Lotto, sold $363m in tickets.

More than $635m came back to West Aussies in winnings, including 37 winners taking in almost $67m combined in Saturday Lotto, and seven winners of $1m on Monday draws.

The mainstay of a last-minute birthday card — the scratchie — saw 60 top prize winners take home $5.7m.

“Lotterywest did achieve record sales of lottery games in 2023/24,” an agency spokeswoman said. “Lotterywest also delivered record-breaking returns to the WA community in the form of lottery prizes and grants — $373m was delivered in grants to health, sports, arts and WA local community groups.”

The booming numbers come against a grim economic picture for West Australians, with new polling this week revealing 40 per cent of locals believed their finances would be worse off in 12 months.

Another poll, by the Financial Counsellors Association of WA, showed more than 50 per cent of WA families have been forced to cut back substantially on food and entertainment.

Lotto retailer and Mount Lawley News owner Matt Donkin said despite the tough times, the weekly lotto ticket offered something families needed — hope.

Mr Donkin, who took over the business three years ago, said lotto was at the heart of many communities, not just because of the regular donations to local groups, but the connection newsagents and retailers had through their shops.

“People are still hopeful, and everyone likes the lotto dream, so we’ve seen sales continue to increase,” Mr Donkin said.

“More so when there is a jackpot, which, although this year there’s been less large jackpots, we still have some of these sort of phenomenal jackpots that have happened.

“There really is that community connection — like, obviously it’s dependent on the location, whether it’s a shopping centre or a strip shop or whatever, but I still think you’ll find that a lot of the newsagents know their customers.”

The community attitude extended to tickets, with Mr Donkin saying while lotto sales at his business had risen by 17 per cent, syndicates had risen by 22 per cent in the past 12 months

The popularity stemmed from a run of prominent wins for WA group tickets, he said, including the Beldon Curves Gym syndicate in 2021, where 55 women pocketed $80m — off an investment of $5.

A year later, a group of 20 miners in Kalgoorlie won $53m in a group ticket — taking home $2.6m each.

Last August, a 50-person syndicate of supplies staff, cleaners, orderlies and one clinical nurse specialist at Fiona Stanley Hospital won $4m in a syndicate.

“We’re getting groups of workers, groups of friends, that are coming in and putting their money together,” he said.

“They’re an opportunity to buy into a higher value ticket that potentially increases their chances of winning, but at a lower cost. People are willing to share the prize when the prize is so huge.”

The generosity, Mr Donkin believes, isn’t just limited to syndicates either, pointing to the mentality of customers who say “I only want a few million” during big jackpots.

“Surprisingly, a lot of people feel that when the larger jackpots are won by only one or two people, they feel that perhaps it should be spread,” he said.

“People are more selfless, in my experience, than what we would think. You only need so much.

“It’s not so much that I would buy a super yacht and go around the world and live a life of luxury.”

On Friday, Erica Bannister was picking up a lotto ticket for her work syndicate of nurses.

“I buy them because I think I might have a chance to win, you’ve got to be in it to win it,” she said. “It’s just the hope that one day I’ll win. And I guess I break even because I win small amounts that keep me going.”

Ms Bannister is in two syndicates at work, each week one group buys Saturday’s lotto ticket and the other on Thursdays.

“The Saturday one is set numbers, we buy a system five on that one,” she said. “We buy the syndicates religiously.”

While questions have been raised about the State Government owning an effective gambling company through Lotterywest, Mr Donkin believed there wasn’t the same “instant gratification” to other forms, saying he never saw customers spending “ridiculous” amounts.

“Playing lotto is fun and low risk for most people,” a Lotterywest spokesperson said. “Lotterywest encourages all players to set and remain within a budget that is appropriate for them.

“Player safety continues to be a priority with Lotterywest-initiated advertising controls, spend limits, self-exclusion, transparent odds and free support services available to players.

“Training is also provided to all staff and retailers to support safe play.”

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