Lotto creates 38 millionaires in record sales

Thirty-eight people became overnight millionaires after winning Lotto last year - and the Lotteries Commission doled out more than $400 million in prizes.

The commission's 2007-08 annual report shows that hopeful Kiwis spent a record $778 million on Lotto, Powerball, Lotto Strike, Big Wednesday, Keno and Instant Kiwi.

About 3000 community groups, arts agencies and sports organisations benefited from more than $150 million in Lotteries Commission grants.

But 21 problem gamblers told counsellors that Lotto or its associated games were their main form of gambling.

The year's record sales were 4.4 per cent up on the previous year, mainly through strong Powerball sales thanks to three huge jackpots.

A New Plymouth family became Lotto's biggest prizewinners in April, pocketing just over $19 million in a Powerball jackpot.

"Many infrequent players are motivated to purchase tickets for big jackpots," NZ Lotteries chief executive Todd McLeay said.

The commission is one of the country's biggest crown-owned enterprises and operates under the Gambling Act. It has 1000 retail outlets employing more than 4000 people, and this year launched an online sales website, MyLotto, which now has more than 30,000 signed up players.

The commission is required by law to maximise profits while operating in a "socially responsible manner". "For most players, lottery games are considered to be a bit of fun and light entertainment and lotteries provide a clear net community benefit," the report says. "There are, however, a small number of people for whom playing our games can create gambling problems."

Problem Gambling Foundation chief executive Graeme Ramsey said up to 60,000 New Zealanders were problem gamblers.

Lotteries legitimised gambling culture and were seen by some addicts as their "way out" of big gambling debts, he said. It was a case of, "I'm in a hole, I've lost a whole bunch of money, but it's okay because I'll win Lotto."