It appears the early reports were true, and Mega Millions is getting a price increase.
In conversation at the La Fleur’s 2024 Raleigh Conference, Oklahoma Lottery executive director Jay Finks spoke of the proposed changes to the popular lottery prize.
With his comments, Finks seemed to confirm Mega Millions tickets will cost more starting in April of 2025.
With the game change in April coming with Mega Millions, certainly, I think bigger jackpots are going to be something that will fuel it. But there’s a value proposition there that we hope that the jackpots can cover up, but we’re going from a $2 or maybe a $3 purchase to a $5 purchase. So, there’s some risk there.
Increase Could Boost Excitement or Price Players Out
As Cole Rush of PlayiLottery wrote yesterday, evidence from multiple sources indicates Mega Millions ticket prices will jump from $2 to $5 in early 2025. However, that figure remains unconfirmed for now.
Purchasing a basic Mega Millions ticket today is $2, but players can add a $1 multiplier per line to boost any non-jackpot winnings.
Starting at $20 million and growing until won, the Mega Millions jackpot has surpassed $1 billion numerous times in recent years. A price lift could make those massive jackpots more frequent.
Lottery analyst Tim Chartier told PlayiLottery’s Drew Ellis that the price hike would likely boost excitement around Mega Millions draws. However, he cautioned that the increase could backfire if it prices too many people out. (Bonus and PlayiLottery are both Catena Media publications)
Chartier, a professor of mathematics and computer science at Davidson College, said:
As we’re seeing the $1 billion mark with some frequency, we still see excitement about it from the public, but not quite the way we did when jackpots were first reaching $1 billion. Raising the price of a ticket is certainly a way to get to bigger jackpots, but if they exclude enough of the market, then it’s not going to look a whole lot different than it does now. People will just be paying more.
Still, aside from the potential for bigger jackpots, the price change will differentiate Mega Millions from Powerball. Now, at the same price point, whichever lottery has the bigger prize is likely to cannibalize sales of the other. That conflict may be less likely at separate price points.
Is a New Multistate Draw on the Horizon?
In addition to the Mega Millions news, Finks hinted at a potential addition to multistate lottery draws. However, he also said any attempt to launch a new game should consider jackpot fatigue.
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