Downturn in the Economy Also Affecting Lottery Players

Calgary, AB - As the global economic crisis rages on, it appears that Americans are reducing their spending on lottery products as a method of cutting back personal expenses. A recent Ipsos survey conducted in March among lottery players indicated that nearly half (46%) have reduced their lottery spending, with 38% admitting to spending less on lottery games and 8% cutting them out entirely.

"Lottery players seem to be employing similar coping strategies as average Americans are when it comes to the purchase of non-essential, low cost items," says Paul Lauzon, Senior Vice President with Ipsos' Lottery & Gaming research practice. "For those Americans who may be struggling during this recession, it is clear that part of their coping strategies include reducing their spending on lottery games as these items are viewed by some as having a lower priority."

This coping strategy is comparable to other behaviors unfolding over the past 2 to 3 months, with the reduction of purchases by lottery players mirroring that of the general U.S. population as a whole. When it comes to spending less or cutting out purchases of non-essential, low cost items Americans have reduced spending on items such as snack foods (42%), video/DVD rentals (41%), going to the movies (51%), eating out (49%), and buying books or magazines (39%).

Reasons cited for cutting on lottery purchases also mirrors the reasons cited for cutting back on purchases of non-essential items, except that more people cited the specific reasons for cutting back on lottery purchases. For example, about one-third (34%) of past year lottery players (and 37% of those from households earning under $50,000 per year) who acknowledged stopping or spending less on lottery games reported that they now have less money or disposable income than in the past, and nearly one in five past year players (19%) stated lottery purchases were not priority items for them.

Among past year lottery players, significantly more women (52%) than men (40%) reported stopping or spending less on lottery game purchases. Similarly, significantly more respondents from households earning under $50,000 a year in household income (54%) or with children in the household (56%) reported stopping or spending less on lottery game purchases compared with respondents from households earning more than $50,000 a year in household income (40%) or households without children (41%).

"The challenge ahead for state run lotteries is to better understand the concerns of their players and respond with products that suit these specific needs," concludes Lauzon. "Many states and jurisdictions rely on the revenues from lotteries to fund key programs and a reduction in sales could translate into a reduction of services."

These are the findings of an Ipsos study conducted from March 16 - 19, 2009 among 1007 U.S. adults (18+) selected randomly across the nation. Results are considered accurate within 3.10 percentage points, 19 times out of 20, of what they would have been had the entire adult population in the U.S. been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error. These data were weighted to ensure that the sample's composition reflects that of the actual U.S. population according to U.S. Census figures. Respondents were interviewed in English.

For more information on this news release, please contact: Paul Lauzon Senior Vice President Ipsos Reid, Lottery & Gaming (403) 294-7386 [email protected]

About Ipsos Reid

Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, health and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, visit www.ipsos.ca.

About Ipsos

Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999.

In 2008, Ipsos generated global revenues of e979.3 million ($1.34 billion U.S.).

Visit www.ipsos.com to learn more about Ipsos offerings and capabilities.

Ipsos, listed on the Eurolist of Euronext - Comp B, is part of SBF 120 and the Mid-100 Index, adheres to the Next Prime segment and is eligible to the Deferred Settlement System. Isin FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP