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Ian Coss

👤 Person
135 total appearances

Appearances Over Time

Podcast Appearances

Planet Money
How the scratch off lottery changed America

Today on the show, the unlikely story of how Massachusetts became the lottery capital of America. It's a tale of high-level mathematics, organized crime, and perhaps the single most important use of a can of Fresca in American history. The story of scratch-off lottery tickets begins with an apparently not very good board game.

Planet Money
How the scratch off lottery changed America

So this company's business, the supermarket games, these were popular in the 1960s. Stores would give them out for free as a little treat to customers, and the prizes were fairly small. We're talking like as small as half a penny. But these games did use a kind of rub-off film. What the company was making was, in effect, proto-scratch tickets.

Planet Money
How the scratch off lottery changed America

So this company's business, the supermarket games, these were popular in the 1960s. Stores would give them out for free as a little treat to customers, and the prizes were fairly small. We're talking like as small as half a penny. But these games did use a kind of rub-off film. What the company was making was, in effect, proto-scratch tickets.

Planet Money
How the scratch off lottery changed America

So this company's business, the supermarket games, these were popular in the 1960s. Stores would give them out for free as a little treat to customers, and the prizes were fairly small. We're talking like as small as half a penny. But these games did use a kind of rub-off film. What the company was making was, in effect, proto-scratch tickets.

Planet Money
How the scratch off lottery changed America

Yeah, so the way this particular game worked was there were 10 scratch-off spots on the game ticket, and each revealed a playing card, you know, like ace, king, queen, jack. So you scratch off three spots. If those match, you win. Again, mostly just small prizes like pennies.

Planet Money
How the scratch off lottery changed America

Yeah, so the way this particular game worked was there were 10 scratch-off spots on the game ticket, and each revealed a playing card, you know, like ace, king, queen, jack. So you scratch off three spots. If those match, you win. Again, mostly just small prizes like pennies.

Planet Money
How the scratch off lottery changed America

Yeah, so the way this particular game worked was there were 10 scratch-off spots on the game ticket, and each revealed a playing card, you know, like ace, king, queen, jack. So you scratch off three spots. If those match, you win. Again, mostly just small prizes like pennies.

Planet Money
How the scratch off lottery changed America

So while still chipping away at his PhD, John started to work with this game company.

Planet Money
How the scratch off lottery changed America

So while still chipping away at his PhD, John started to work with this game company.

Planet Money
How the scratch off lottery changed America

So while still chipping away at his PhD, John started to work with this game company.

Planet Money
How the scratch off lottery changed America

Still, you know, like having a chance to encounter those weaknesses, those vulnerabilities in a low stakes environment, it was kind of giving John the chance to beta test a method and work out all the bugs.

Planet Money
How the scratch off lottery changed America

Still, you know, like having a chance to encounter those weaknesses, those vulnerabilities in a low stakes environment, it was kind of giving John the chance to beta test a method and work out all the bugs.

Planet Money
How the scratch off lottery changed America

Still, you know, like having a chance to encounter those weaknesses, those vulnerabilities in a low stakes environment, it was kind of giving John the chance to beta test a method and work out all the bugs.

Planet Money
How the scratch off lottery changed America

Yeah, so the idea was to take this ticket design that John had perfected in the form of a fun promotional gimmick and bring it into the big leagues of actual gambling. Like, instead of pennies, the ticket could offer up thousands of dollars if, that is, they could find a state willing to try this.

Planet Money
How the scratch off lottery changed America

Yeah, so the idea was to take this ticket design that John had perfected in the form of a fun promotional gimmick and bring it into the big leagues of actual gambling. Like, instead of pennies, the ticket could offer up thousands of dollars if, that is, they could find a state willing to try this.

Planet Money
How the scratch off lottery changed America

Yeah, so the idea was to take this ticket design that John had perfected in the form of a fun promotional gimmick and bring it into the big leagues of actual gambling. Like, instead of pennies, the ticket could offer up thousands of dollars if, that is, they could find a state willing to try this.

Planet Money
How the scratch off lottery changed America

It was not the Pennsylvania lottery. Seared in your mind. Oh, for the rest of my life, that jingle will exist. Anyway, yes, in other words, the lottery was... Boring and slow, notably slow. You buy a ticket, you wait, which is definitely not like, I don't know, a slot machine where you pay and then you play and you get the adrenaline rush of finding out right away.

Planet Money
How the scratch off lottery changed America

It was not the Pennsylvania lottery. Seared in your mind. Oh, for the rest of my life, that jingle will exist. Anyway, yes, in other words, the lottery was... Boring and slow, notably slow. You buy a ticket, you wait, which is definitely not like, I don't know, a slot machine where you pay and then you play and you get the adrenaline rush of finding out right away.

Planet Money
How the scratch off lottery changed America

It was not the Pennsylvania lottery. Seared in your mind. Oh, for the rest of my life, that jingle will exist. Anyway, yes, in other words, the lottery was... Boring and slow, notably slow. You buy a ticket, you wait, which is definitely not like, I don't know, a slot machine where you pay and then you play and you get the adrenaline rush of finding out right away.

Planet Money
How the scratch off lottery changed America

In fact, that was John's pitch, like instant gratification, excitement. That was the lottery of the future. And when states heard that pitch... Well, it apparently did not work, actually. It did not land.