The National Lottery – Mifal HaPayis – has changed its system to increase the size of the prizes and decrease the odds of winning. Critics say it’s a way of getting more money from the poor.
As of the end of February, the First Prize will be five million shekels - up from four million. However, winners must guess correctly six numbers out of a possible 37 – instead of out of 34. The “wild card” number must be chosen from out of eight possibilities, instead of one out of ten. The odds of winning the Grand Prize have thus grown from 1 out of 13.5 million to 1 out of 18.5 million today.
Given the increased odds against winning, it is likely that several weeks will go by with no one taking home the Grand Prize. It will thus be rolled over from week to week, increasing all the while until someone wins it.
The new system is being publicized in a 9-million shekel ad campaign, entitled, “The New Lotto: The Prizes Have Grown.” The ads state, "It's bigger, more generous, with better returns."
The objective of Mifal HaPayis is to raise ticket sales from 3.75 billion shekels in 2008 to 4.15 billion shekels in 2009 – a nearly 11% growth. The increased return to the public, however, will be insignificant – only 3.33%.
Money for Winners and Classrooms
Prize money in 2008 totaled 900 million shekels. This represents some 60% of the income, while another 20% goes to build classrooms and sports halls around the country.
In addition to the Grand Prize, most of the other prizes have also increased. The 3rd prize, for instance, averages 5,200 shekels, up from 3,000. The second prize remains the same, at a half-million shekels, with odds of winning at 1 in 2.3 million.
Critics: Taking Money from the Poor
The National Lottery has its share of critics, some of whom say it is equivalent to an “income tax” on the underprivileged classes. The claim is that many who cannot afford it are tempted by the large prizes to put down a few shekels – or a few hundred shekels – in order to possibly luck out on a windfall.
“The Lottery people are very creative in thinking up new games and new ways to attract their customers, most of whom are not well off,” says one. “The State exempts these customers from paying income tax, but the Lottery imposes its own income tax on them. With this ‘New Lotto,’ the masses think of the prize, but the Lottery people think how they can squeeze more and more money from them.”
The point has also been made that during recessions, it is in the national interest to increase spending in order to prevent a domino effect of business closures. However, if the consumers spend their little money on gambling and lotteries, the money does not reach the businesses and could cause the same domino effect.
Mifal HaPayis Responds
Mifal HaPayis provided this response to IsraelNationalNews: “Like any other commercial body, we attempt to increase our earnings by matching the product to our consumers’ demands… A TGI [Target Group Index] poll finds that 2/3 of the adult population in Israel take part in the lottery from time to time, such that the change is certainly not aimed at the weaker classes, as [some accuse us]. The average investment in the lottery is about 40 shekels, and the minimum is 5.8 shekels, such that the improved system does not represent an attempt to take advantage of these classes.”