JACKSONVILLE, Fla. — Action News Jax investigates the Florida Lottery and whether the state agency is preying on the poor.
The lottery is enjoying record sales -- $6 billion last year -- and a planned expansion may increase revenue even more.
Action News Jax investigated how the lottery markets its games and the cost to local families who can least afford to play.
The Florida Lottery describes scratch-off games as fun to play, with commercials promising "a chance to win lots of cash instantly."
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Mike Heggs buys scratch-off tickets every week. His dreams of winning big involve having enough money to pay his bills.
“You have the luck of the draw. Sometimes you might win, sometimes you lose," Heggs said.
With 83 scratch-off games, there are more opportunities than ever to win or lose. But are poor local families placing a losing bet?
"They are selling a dream in that sense, selling hope,” said Douglas Johansen, associate dean of business at Jacksonville University.
The lottery is in line for a massive expansion to nearly triple the number of automated ticket machines from 2,000 statewide to 5,500.
"It's hard to underestimate the social aspects. If you find people that are in a neighborhood where everyone is buying a lottery ticket, it becomes part of the social fabric," Johansen said.
We compared census information to lottery sales and found in Jacksonville, these 6 ZIP codes -- 32254, 32202, 32204, 32206, 32208, 32209 -- have the lowest median household income but spent the most, on average, in the past year for scratch-off tickets.
Households in 32254 led the way, spending 2.4 percent of their income on scratch-offs, or about $636 a year. We took our findings to state Sen. Audrey Gibson, who serves on the committee that hears lottery matters.
"I don't agree with the premise that the lottery is specifically targeting 32209 for example," Gibson said.
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We dug through the lottery's advertising numbers for the last five years and discovered the percentage of ads appearing on media outlets with a large minority audience has increased from 19 percent to 24 percent. This includes ad buys in traditional African-American publications like the Florida Star and Jacksonville Free Press.
"In moderation, I don't think it's detrimental," Gibson said.
We contacted the lottery, and got this statement that reads in part "The Florida Lottery does not make ad buys based on income levels or residential neighborhoods."
Action News Jax reporter Ben Becker: “Where's the line between marketing and being predatory?”
Johansen: “That's an excellent question. It bears some examination as a society as a whole."
Delphine Clark doesn't play the lottery and thinks earning her money is the best bet.
"I just figure, hard work and you will get what you need," Clark said.
In one study by Cornell University, 47 percent of low-income respondents identified winning the lottery or sweepstakes as the best strategy for obtaining a half-million dollars in their lifetime.
Cox Media Group
