Calgary lotteries slash prices, expectations as ticket sales decline

Calgary lotteries that offer up lavish homes, luxury cars and exotic vacations in support of local charities have seldom struggled to convince people to take a chance at winning big in support of a worthy cause.

But as Alberta’s economy continues to struggle, those who run the lotteries are being forced to adapt.

“The times are changing — the economy is in a difficult situation right now,” said Sean Libin, president of the Kinsmen Club of Stampede City, which runs the annual Kinsmen Lotto for the Children’s Hospital.

“We wanted to sell out this year, but the math and trajectory doesn’t indicate that’s feasible.”

In May, the lottery that supports Alberta Children’s Hospital kicked off with special entry-level ticket pricing, creating a $50 single ticket alongside pricier ticket packs.

The charity also took the city’s economic realities into account with its prizes, offering up a pair of more modest homes as grand prizes, and ditching the usual luxury vehicle offered in its earlybird draw for $4,000 of tax-free cash monthly over the next five years.

Even with those incentives, Libin said sales haven’t been what they were hoping.

On average, the lottery had been able to hand over about $1.2 million to Alberta Children’s Hospital annually, but last year only managed about half that amount.

“This year we expect that to drop even further,” Libin said.

Next Thursday, the 17th Cash and Cars Lottery in support of the Alberta Cancer Foundation launches, and will also announce lower ticket prices prompted in part by the economic downturn.

Daryl Silzer with the Alberta Cancer Foundation said they’ve managed to weather the storm over the past couple of years, but recognize times are tough for their supporters, even those who step up every year to support a cause close to their hearts.

“Every year we re-evaluate what’s happening in our environment and the economy has always played a factor, but it’s not the only thing we look at,” he said.

“Last year we were a bit lower than normal, but it was still a good year and we’re hoping it’s similar this year.”

Silzer noted in addition to rolling out lower ticket prices, they’re going back to basics on their brochures, swapping out pictures of the top prizes on the glossy cover with images of Calgary’s Tom Baker Cancer Centre and Edmonton’s Cross Cancer Institute, the two facilities supported by the lottery.

Earlier this year, STARS Air Ambulance made an unprecedented plea to supporters of its annual lottery, with only 80 per cent of tickets sold by its early bird cut-off.

The appeal had the desired effect, with people snapping up nearly $2 million worth of tickets in three days, allowing it to sell out.

The eleventh-hour support prompted a heartfelt thank you from the non-profit society that operates the life-saving aircraft, with special decals declaring “Times are tough Albertans are tougher” placed on its choppers until next year’s lottery to honour their benefactors.

This fall, Calgary Health Trust will launch its annual Hospital Home Lottery.

And while it’s not cutting ticket prices, there will be fewer ducats available, said spokeswoman Nicole Janke.

She said the organization is mindful of the economic slump and will take a “prudent approach with our events and other parts of our fundraising portfolio.”