Mega Millions is set to undergo a big change starting on Tuesday, April 8, with ticket prices increasing from $2 to $5. What do lottery couriers think about this newly differentiated product? Bonus had a chance to speak with Lotto.com CEO Thomas Metzger about the upcoming Mega Millions changes and what it could mean for one of the nation’s leading couriers.
It’s one of a number of changes that will drastically change the popular lottery draw game. The plan behind it, according to lottery officials, is to help differentiate Mega Millions from the otherwise very similar Powerball.
The price increase will include an automatic multiplier of up to 10x and no more break-even prizes. The starting jackpot will increase, while the odds of winning have improved.
Metzger is among those who see the change as a positive one.
Q&A with Lotto.com CEO Thomas Metzger
Bonus: How do you see this price increase impacting the game for your players?
Metzger: “We think this is a very exciting change for our players. First of all, the Mega Millions jackpot will now start at $50 million versus $20 million. In addition, the odds of the game will improve, the minimum prize will increase from $2 to $10, and there is a new $10 million prize tier which will keep players excited during big jackpot runs!”
Bonus: How will the changes to Mega Millions impact Lotto.com’s business?
Metzger: “To answer that question we don’t have to look much further than the last time Mega Millions changed their price point from $1 to $2 during fiscal 2017. What we saw was an almost 40% uplift in Mega Millions sales in fiscal 2018. We have no reason to believe that this price increase will not yield similar results.”
Bonus: Could this change be a move that will push more players toward online purchases where available?
Metzger: “We have a lot of data that supports the fact that our players are very different from the ones that play at retail. We also believe that the Mega Millions changes will result in record breaking jackpots. The beauty of our business model is that it attracts new players to the game that are younger, wealthier and most importantly digitally native. We advertise online where those players are, which is one of the many reasons we do not cannibalize retail. In all the states in which we operate retail sales continue to rise and break new records, which proves our thesis that there is a lot of cross pollination going on, and our new players become retail players as well!”
Bonus: Couriers are a bit of a buzzword at the moment in the lottery industry, what would you say to prospective new customers that are looking for reassurance on the integrity of courier purchases?
Metzger: “While I can’t speak for the industry as a whole, I can certainly speak to the high standards we have here at Lotto.com.
We hold certifications from the National Council of Problem Gambling (NCPG) and Gaming Labs International (GLI) (the industry standard for compliance and security). Lotto.com is also an Associate Member of NASPL (North American Association of State and Provincial Lotteries) which boasts 53 member lotteries. We hold courier licenses in the only two states that offer them (NY and NJ), and it is worth noting that we follow every regulation required by our licenses in NY and NJ in every jurisdiction across the country in which we operate.
We strongly believe it is in the best interests of both Lotto.com and our players for us to do so. And leaving the most fun for last, since inception we have helped players win over $100 million in prizes, including nine winners of $1 million or more!”
Bonus: Is Lotto.com looking to do any special promotions in relation to the new Mega Millions price and format change?
Metzger: “Yes, we will be running promotions after the format change and for a limited time to commemorate the event for both new and existing customers! New customers in certain jurisdictions will enjoy a Free Mega Millions Ticket, and lapsed existing players will be able to get $3 off of their ticket.”
What Mega Millions players will get in return for the higher cost
Here’s a look at all the changes that will take place following the Friday, April 4 drawing and begin on Tuesday, April 8.
| Mega Millions | Old Format | New Format (April 8) |
|---|---|---|
| Cost | $2 | $5 |
| Starting Jackpot | $20 million | $50 million |
| Matrix | 5/70 + 1/25 | 5/70 + 1/24 |
| Overall Odds | 1:24 | 1:23 |
| Jackpot Odds | 1:302,575,350 | 1:290,472,336 |
| Non-Jackpot Prizes | $2 up to $1 million | $10 up to $10 million |
| Multiplier | $1 per play | Included |
The changes could mean a lot for retail and online lotteries around the US. That includes courier services that offer Mega Millions tickets.
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