This paper from discusses the opportunity for a state government backed savings product offered through the lottery channel, making the case for the role of government in savings, the potential of the lottery channel for offering such a product, the impact of a lottery-based savings ticket on consumers, and how such a product could be offered to consumers through the lottery channel. Prize-linked savings lottery tickets will still provide the fun that consumers crave while simultaneously increasing the financial security of players, what a winning proposition!

“Imagine walking into your local convenience store, going up to the lottery counter, and asking to buy a $15 savings ticket. ”

“Households with less than $25k in income spend on average nearly $600 on the lottery annually.”

“Those who are less satisfied with their financial situation or are motivated by a reward to save are both more likely to view savings tickets favorably and to say they would buy them.”

• Savings tickets attract a diverse set of consumers
• A strong demand for a lottery savings ticket exists
• Gifting savings is a popular motive for buying savings tickets
• 61% of respondents stated that they thought the state and federal government should do more to encourage people to save
• Half of all respondents said that they were likely to buy a ‘savings ticket’, a potential market of 65.6 Million adults
• 52% of respondents were interested in gifting savings.