After gambling $1 to play the California lottery, would you shell out an extra $1.75 every two weeks for tips on how to win?
LottoWorld is betting you would. The Naples, Fla.-based publication launched a twice-monthly California edition last week, complementing its regional publications in the East and Southeast. The magazine, according to its publishers, provides tips for getting the winning edge.
In the meantime, the company is winning big in the publishing business, exploiting a niche market that has been ignored. The company went public in March. Its stock, traded under the symbol LTTO on Nasdaq, has risen from about $7 per share to $10.
“In many ways, this must be the biggest untapped market in publishing history,” said editor Rich Holman, who used to be a stockbroker and investment banker. Holman estimates that 100 million people nationwide spent $30 billion on lottery tickets last year.
LottoWorld published its first issue in August 1993 with just 16 pages. The California edition has almost 100 pages.
LottoWorld now publishes 12 state editions and two regional editions. By the middle of next year, it plans 22 state editions and 7 regional publications-blanketing every state in the country that offers lotteries.
This month, the company plans to publish 400,000 copies. It expects to hit the 1 million mark by fall.
To fuel its growth, LottoWorld has signed a deal with subsidiaries of publishing giants Time Warner and Hearst Corp. to market and distribute the TV Guide-size magazine at supermarkets and convenience stores throughout the country.
Why would anyone want to buy this publication?
It provides tips for winning the lottery-the equivalent of finding a needle in a haystack, even for experienced gamblers.
These hints range from the obvious (increase your odds by buying more tickets) to the dubious (avoid quick-picks from the machine) to the plausible (avoid popular numbers such as those under 31).
Holman is confident his company can succeed by keeping readers informed on winning strategies, as well as offering entertaining features on the “everyday people” who have won the lottery.
Lotteries nationwide have created 15,000 millionaires in 30 years, Holman contends.
The magazine’s weak spot seems to be lack of national advertisers.
Holman believes he can attract big national advertisers-such as alcohol, cigarette and consumer products companies-as circulation increases.
Until then, he’ll have to rely on advertising such as one offering a “Lucky Lottery Troll” for $4.99, plus $2.99 for shipping and handling.
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