Do state lotteries pay off more often at the beginning?
Indeed, there have been purchase incentives offered to advertise new state lottery games. Here is one May 2005 news story about Michigan’s Classic Lotto 47 launch. If you don’t feel like reading the entire story, the part which addresses the question is this quote: “To launch the new game, the Lottery is offering the Classic Summer Sweepstakes that will award a total of 100 classic summer prize packages in four separate drawings. The summer prize packages include a Ducane stainless steel outdoor gas grill; eight Detroit Tigers tickets, and a $100 Big Boy gift card.” I suspect initially bumping the pay-off rates could be tricky given the state-mandated laws on pay-offs, plus dropping the rates wouldn’t make good press, but material incentives by state lotteries definitely have been offered in the past.
