Mass. Lottery finds itself in a bind -- $40m in prizes, but few are buying

The Massachusetts Lottery, already struggling to reach this year's revenue targets, is having trouble selling tickets for its new $20 sweepstakes.

With nine days left before the sales window closes, lottery officials estimate only 30 percent of the 4 million tickets have been sold. The tickets went on sale May 1 and the prize drawing is scheduled for July 4.

Lottery officials say they need to sell half the tickets to break even on the game, called the Star Spangled Sweepstakes. But the full $40 million in prize money will be paid out no matter how many tickets are sold, officials said.

The sweepstakes was seen as a way to help narrow the lottery's revenue gap before the end of the state's fiscal year on June 30. In early promotional materials, officials predicted the new game would sell out quickly because it will produce more millionaires in a single drawing than any other game in United States lottery history.

But now, state lottery officials are worried about meeting the sales target of $80 million. As an added incentive, the lottery has started a special daily drawing for those who purchase sweepstakes tickets this month. Winners receive $1,000 if their number is picked.

"We're so accustomed to instant gratification that people are holding off to purchase the ticket," said Beth Bresnahan , a lottery spokeswoman.

Lottery officials have struggled this year to keep sales growing and keep revenues flowing to cities and towns. Last year, the lottery had its best year ever, with sales of $4.52 billion. State legislators set a target of a 2 percent increase this year, but as of yesterday sales were off 1.66 percent, or about $73 million, from last year's pace.

Bresnahan said sales this year have been hurt by high gas prices, a dearth of large Mega Millions jackpots, and competition from casino and Internet gambling.

Robyn Chiminiello , owner of Hub Video in South Boston, one of the largest sellers of lottery products in the state, said the sweepstakes tickets are selling slowly, although she said sales have increased lately. Chiminiello said the game would be more popular if customers had the chance to win some money instantly even if a big pay-off was awarded later.

"They don't want to wait around," she said of lottery players. Chiminiello said she has sold 23 of the store's 53 sweepstakes ticket books. Each book contains 20 tickets.

Chiminiello said she doubts the lottery will be able to sell all 4 million tickets. "If I'm an indicator, I don't think so," she said. "I hope so."

Bresnahan said lottery officials expect sales of the sweepstakes tickets will pick up markedly as the June 30 deadline approaches. He said that if fewer than 4 million tickets are sold, the odds of winning will increase because winning numbers will be drawn only from the pool of tickets that have been sold.

The $40 million in prize money includes one $20 million award, 10 $1 million prizes, and 40 prizes of $250,000. All prizes will be paid in lump sums rather than in installment payments.

In Michigan, similar raffle-style games have been a runaway success. The Michigan lottery sells a limited number of tickets for each game and holds a drawing only after all the tickets have been sold. The first game, featuring $20 tickets, sold out in 11 days, according to a spokeswoman. The second game, with a $20 ticket, sold out in seven days. The last game featured a $50 ticket and sold out in just 2 1/2 days.

Bruce Mohl can be reached at mohl@globe.com.