Mega Millionsβ head honchos are considering raising the price of the tickets, according to reports. While still unofficial, anonymous sources told Lottery Geeks that the price is expected to skyrocket from $2 to $5.
While people familiar with the matter were convinced that this decision was βabout as close to final as it can be,β lottery officials are yet to comment.
In any case, raising the price of the tickets to $5 would mark a significant change. When the game was introduced back in 1996, the cost of the tickets stood at $1. This price was doubled in 2017 when the consortium that oversees the game decided to establish a starting jackpot of $40 million (previously $20 million).
However, once the pandemic came, the starting jackpot was scaled back to $20 million but the ticket price wasnβt.
Why Modify the Price Now?
Sources told Lottery Geeks that the increase from $2 to $5 has several goals, one of which is to allow players to distinguish between Mega Millions and Powerball. Additionally, the consortium behind the game is allegedly considering increasing non-jackpot prizes. Finally, an increase in the ticket price would also allow the game to provide more funding to causes, such as education.
According to sources, this change has been considered for almost two years. The administrators of Mega Millions have also considered a variety of other changes, such progressive-style jackpots in separate states. However, this would have created a variety of logistical issues, which is why the nine Mega Millions consortium states have instead decided to increase the price, according to the reports.
Despite that, raising the price of Mega Millions tickets from $2 to $5 is obviously a risky move and may be a turn-off to some players. An economist told Lottery Geeks that the price elasticity of the Mega Millions tickets is yet to be seen.
As mentioned, the move seeks to cement Mega Millions as a game that is not getting confused with Powerball. However, a large part of mass lotteriesβ appeal has been the cheap tickets, according to experts, meaning that some players may be alienated even if Mega Millions starts offering better prizes.
In any case, accumulating huge jackpots would be the best advertising for the game, according to experts. Additional unknowns include the potential modification of non-jackpot prize amounts. While most people play for the jackpot, smaller prizes are still important to many players. However, increasing non-jackpot prizes would mean reducing the money fueling the jackpot.
The ticket price change is expected to be voted on during a directorβs meeting in Puerto Rico in June, according to people familiar with the matter.