Players of the D.C. Lottery’s four-number game have been on an inconceivable roll of fortune.
The average payout for DC-4, the twice-daily game featuring a $5,000 top prize, has cleared 70 percent in six of the fiscal year’s nine months — 20 percent higher than normal. In May, the payout hit an all-time record of 87 percent.
In other words, for every dollar bet on the game, the lottery returned an unheard of 87 cents to winners. DC-4 paid out $6.5 million in prizes for the month.
“Some days you get the bear and some days the bear gets you,” said D.C. Lottery spokesman Bob Hainey.
Gamblers’ astonishing success with DC-4 this year could cut into the annual transfer of gaming revenue into the District’s general fund. Lottery officials expect their games to generate roughly $67 million for the general fund this year, down from $71 million in 2005 and $73 million in 2004.
“DC-4 just blew up,” Hainey said. “But you can’t cry because sometimes the payout can drop to 41 percent.”
A Virginia lottery spokesman said the state’s Pick 4 game has never paid out higher than 64 percent in a single month.
Gail Howard, a Nevada-based lottery expert and author of “Lottery Master Guide,” said an 87 percent payout is “impossible.” She recommended checking the random number generators and drawing equipment.
“There had to be certain numbers that were bringing in too many bets and somebody wasn’t alerted to that,” she said.
But the lottery system is designed to prevent such fiscally disastrous situations, Hainey said. There’s a $3 million liability cap on every number combination to prevent a single drawing — 666 on June 6, for example — from bankrupting the system. All numbers are selected randomly and auditors are on site for everydrawing.
“It’s the luck of the draw,” said David Gale, executive director of the Cleveland-based North American Association of State and Provincial Lotteries. “That’s the whole explanation. That may never happen again.”
The D.C. Council approved emergency legislation last week authorizing the lottery to spend an additional $11 million for higher than anticipated prize payouts and associated fees and commissions.
Lottery income
» In 2005, D.C. Lottery earned $234.9 million
» 50 percent went to prize payouts
» 33 percent was transferred to the general fund
» 17 percent went to administrative costs, contracts and agent commissions
