Scratch & Win: Part 1 – The Instant Ticket
Produced by GBH News and distributed by PRX
Introduction: The Scene at Joe's Market
The podcast episode opens at Joe's Market in Quincy, Massachusetts, one of the busiest lottery retailers in the state. Host Ian Coss sets the stage by highlighting the prominence of scratch tickets within the store, describing “at least 50 different clear plastic boxes, all numbered and dangling colorful tickets” (00:29). The environment is bustling with regular lottery players, showcasing the ingrained presence of lotteries in everyday American life.
The Lottery Players: Profiles and Insights
Jack, a 75-year-old mechanic, exemplifies the dedicated lottery player. Engaging in conversation at [00:22], Jack reveals his daily purchase habits:
Jack: "I play $50 every day. Have you won yet?" (01:06)
Despite spending substantial amounts without significant returns, Jack persists:
Jack: "I'm dreaming to get that big one so I can retire. I'm 75 years old. I don't have money in retirement." (01:38)
This persistence is echoed by others in the store, some referring to the lottery as the "Massachusetts state robbery" or likening it to "organized crime with suits" (02:37). The dialogue underscores a community's love-hate relationship with gambling, balancing the allure of potential instant riches against the reality of low odds.
The Cultural Shift in Gambling
Ian Coss delves into the evolution of gambling in America, noting that legal gambling has become more ubiquitous than ever. He contrasts the limited gambling options of the past, such as Las Vegas casinos and horse racing, with today's diverse landscape that includes state lotteries, online poker, and sports betting. This shift was significantly influenced by state lotteries, which normalized and destigmatized gambling over decades.
Coss: "Legal gambling is more ubiquitous than at any time in American history." (04:06)
The Birth of the Instant Scratch Ticket
The narrative transitions to the pivotal moment when scratch tickets were introduced. Ian Coss highlights the staggering per capita lottery sales in Massachusetts—$1,037 per adult annually—which set the state apart from others (04:55). This success hinged on the advent of the instant scratch ticket, a product born out of necessity to combat rampant illegal gambling linked to organized crime.
John Koza's Story: From Student to Innovator
At the heart of the story is John Koza, a pioneering computer scientist whose journey was instrumental in creating the first modern scratch ticket. Beginning as a high school student in 1957, Koza's early interest in computer science and problem-solving laid the groundwork for his later innovations. By the 1960s, Koza was deeply involved in developing secure lottery games, focusing on probability and combinatorial mathematics.
Koza: "Probably in about half the games we ran, there would be sort of a little run of tickets in a little town and you'd realize that somebody in that town figured out some weakness in the game that we had missed." (19:33)
After his initial foray into game design faced challenges—such as games being easily hacked—Koza co-founded Scientific Games, driven by the vision to create secure, unhackable scratch tickets.
The Massachusetts Lottery Case
In the early 1970s, the Massachusetts Lottery sought to address the pervasive issue of illegal gambling. The existing weekly drawing game failed to capture public interest, leading state officials to seek innovative solutions. Enter John Koza and Scientific Games, who proposed the instant scratch ticket—a product that offered immediate results and heightened engagement.
When the initial less sophisticated instant ticket was flawed and vulnerable to hacking, Koza demonstrated the security weaknesses using inventive methods:
Coss: "Armed with his obsessive personality, plus years of experience playing cat and mouse with would-be scam artists on his supermarket games, Koza got to work." (33:07)
Koza's successful attempts to breach the existing ticket design convinced the Massachusetts Lottery to partner with Scientific Games, resulting in the creation of the world's first scratch ticket. This new ticket featured heavy paper, an indentation-free printer, and a shiny metallic film, ensuring security and unpredictability.
Koza: "It was compelling, let's put it that way." (36:16)
The Impact and Growth of Scratch Tickets
The introduction of scratch tickets revolutionized lottery sales. On May 29, 1974, Massachusetts saw the launch of these instant tickets, which quickly became a sensation. Testimonials from early winners, like Geraldine Stewart, who won $1,000 on her first ticket (37:27), illustrate the immediate impact and popularity of the new format.
Store owners recount the overwhelming response:
Store Owner: "It was just crazy. It's like I thought she was going to lose her mind." (39:10)
The instantaneous gratification offered by scratch tickets mirrored the appeal of slot machines, fostering a self-feeding cycle of purchases:
Coss: "If you don't win, you can always try again. And if you do win, well, now you've got more money to play with." (39:43)
John Koza's prediction of immense sales came true, with Scientific Games achieving $6 million in ticket sales in their first year, later expanding as other states adopted similar instant games (41:06).
Koza: "We knew we hit the world by the tail." (41:34)
Conclusion: The Significance of Scratch Tickets
The episode concludes by emphasizing the transformative role of scratch tickets in shaping the American lottery landscape. From their inception in Massachusetts to becoming a staple in convenience stores nationwide, scratch tickets have embedded themselves into the fabric of daily life, celebrated yet seldom acknowledged in the state’s proud historical milestones.
Coss: "It's a story of power, money, politics, crime, and vaudeville." (47:35)
The narrative sets the stage for subsequent episodes, which will explore the political maneuvers and key individuals behind the Massachusetts Lottery's rise to prominence.
Notable Quotes with Timestamps
- Jack: "I play $50 every day... I'm dreaming to get that big one so I can retire." (01:06-01:38)
- J. Peralt (Massachusetts Lottery Director): (Implied but not directly quoted)
- John Koza: "Probably in about half the games we ran... someone figured out some weakness." (19:33)
- Geraldine Stewart: "I believe it was the Pride station in East Long Meadow... I was lucky." (38:02)
- John Koza: "Absolutely." (41:06)
- Coss: "It's a story of power, money, politics, crime, and vaudeville." (47:35)
Key Takeaways
- Innovation Driven by Necessity: The creation of the scratch ticket was a direct response to the need for secure, engaging lottery products that could compete with illegal gambling.
- John Koza’s Pioneering Role: Koza’s expertise in computer science and problem-solving was crucial in developing the first secure scratch ticket, leading to the establishment of Scientific Games.
- Massachusetts as a Trailblazer: The state’s adoption and refinement of scratch tickets set a precedent, making it the gold standard for lotteries across the United States.
- Cultural Integration: Scratch tickets have seamlessly integrated into American culture, becoming a ubiquitous form of casual gambling despite underlying tensions about gambling's legitimacy and impact.
This episode expertly weaves personal stories, historical context, and technical innovation to illustrate how a simple convenience store item transformed the gambling industry in America. Stay tuned for the next installment, which delves deeper into the political and personal dynamics that propelled the Massachusetts Lottery to unparalleled success.