Surpassing $87.2 million, lottery sales in Lancaster County set a record last fiscal year, mirroring what's happening throughout Pennsylvania and in many states across the country.

But the fact that lottery revenues are booming while the economy is still struggling has raised a debate about whether there is a real link.

One researcher says that lotteries are more recession-resistant than other forms of entertainment, and that some people may be drawn to play when their financial outlooks don't improve.

In Pennsylvania, however, according to the lottery's executive director, the record sales of 2010-11 were largely attributable to factors unrelated to the economy, such as the addition of 500-plus retailers.

Lottery proceeds also find their way back into counties, in the form of winnings, retailer commissions and funding for programs that benefit senior citizens. One recipient, the Lancaster County Office of Aging, is very appreciative of the dollars it receives but would like to see more, given the needs it's dealing with.

An ABC News story in September reported that two-thirds of the state lotteries that ended their budget year in June had higher sales than the year before -- and 17 of those states set records, including Pennsylvania.

Cornell University professor David R. Just, who co-authored a study several years ago on lottery revenues, said one goal of the research was to see if lottery sales "behaved like other entertainment."

He and fellow Cornell economist Garrick Blalock discovered that wasn't the case. While people may purchase fewer movie tickets when the economy is sluggish, "they still buy lottery tickets," Just said.

He and Blalock also wanted to test the theory that people who've suddenly hit the skids economically will play the lottery to try to get back back what they lost.

Instead, they found it wasn't necessarily the newly unemployed, but people around the poverty line who saw the move as an investment, Just said.

In a longer-term downturn like this one, the current climate "becomes the new reality" for those who are struggling to find work, he said.

"This is when they start playing the lottery," Just said.

The Cornell colleagues used their research to see if lotteries really do prey on the poor, as has long been contended.

They discovered that it isn't the poorest of the poor who play the lottery, but those in the upper end of the poverty spectrum, he said.

What they found, Just said, is that "overall financial outlook and not necessarily welfare [status] impacts the decision to play the lottery."

But while the Pennsylvania Lottery set a record last fiscal year of almost $3.21 billion, its sales were stagnating the first few years of the economic downturn, said the lottery's executive director, Todd Rucci.

"In general, when retail hurts, Lottery hurts," he said in an email.

"Our products are largely an impulse purchase, so when people enter retailers with less discretionary money, it has an effect on Lottery sales."

Lottery revenues in Pennsylvania declined from $3.089 billion in 2007-08 to $3.088 billion in 2008-09 and $3.066 billion in 2009-10. The commonwealth's fiscal year runs July 1-June 30.

During those slow years, "Lottery staff worked to cut costs, increase efficiencies and update our business model to meet the economic challenges head on and lead to future success," Rucci wrote in the email.

He also said there were several reasons sales hit a record in 2010-11.

"A key component was Lottery's success in expanding our points of distribution. This was done by growing [the] retail base by more than 500 locations over the fiscal year, including two new major corporate accounts with Wawa and Rite Aid.

"In addition, a significant increase in the number of self-service terminals allowed us to grow our presence at these accounts and a number of existing retail locations."

Rucci also credited the lottery's "robust" product offerings backed by a "comprehensive marketing campaign."

He said the lottery "is continually looking for new opportunities in all areas of its business ... in an effort to be nimble in an ever-changing marketplace."

RoxAnn Delmonto, who co-owns Colonial News, 2600 Columbia Ave., with her husband, Dan, said she didn't think the economy was as much of a factor in lottery sales as the size of jackpots.

When a Powerball jackpot swells, for example, her regular customers "might play two or three tickets instead of one," she said.

The jackpots bring in new customers, too, Delmonto said.

Otherwise, "people normally play what they play," she said.

Manheim Township resident Dave Byrne said he plays the Cash 5, Mega Millions and Powerball games every week, using the same numbers for a couple of months or so.

In 2011, he won about $50 total, said Byrne, who works as a sportswriter for Lancaster Newspapers.

He said he does it for fun, and with the slim hope that there might be a jackpot out there with his name on it. "It's the lure of easy money," Byrne said with a laugh.

The lottery no longer releases the names of top-selling retailers, but spokeswoman Allison Roberts did provide a list of sales figures for the top five lottery retailers from Lancaster County in 2010-11.

They range from $2.3 million at No. 1 to $1.03 million at No. 5.

According to its 2010-11 Economic and Benefit Impact Report, the lottery has contributed more than $21.5 billion to programs and services for older Pennsylvanians since it was founded in 1972.

"We are very proud to be the only lottery in the country dedicating its profits solely to funding programs benefiting older residents," Rucci wrote.

"Although we don't control where the funds go, we are ever-mindful of the programs Lottery dollars support. Last year, Lottery generated $960.6 million for ... property tax and rent rebates; free transit and reduced-fare shared rides; the low-cost prescription drug programs PACE and PACENET; long-term living services; and the 52 area Agencies on Aging, including full- and part-time senior centers throughout the state."

He said marketing and advertising efforts have been increased to "raise awareness of not only the fact that Lottery proceeds benefit older residents, but also the details of what the programs are and how older residents benefit."

During the 2010-11 fiscal year, more than $55.36 million was paid out to Lancaster County residents in lottery winnings, and retailers here earned about $4.63 million in lottery commissions.

As far as helping seniors, the county received $7.75 million for long-term living services; $1.84 million for the free- and shared-ride program; and $4.9 million for its Office of Aging.

Lancaster County also got $8.68 million in PACE/PACENET funds and $8.86 million in property tax and rent rebates. Those totals, however, also include some non-lottery monies.

The lottery's benefits to Lancaster County "are enormous," said Jacqueline Burch, executive director of the Office of Aging.

The agency gets an annual block grant from the state, much of that made up of lottery money, she said. Last fiscal year, that grant was about $5.6 million.

The funds are used for senior and adult living centers, meal programs and protective services, among other programs. The latter is a priority because of the rise in elder abuse, Burch said.

But with all the assistance the lottery provides, the Office of Agency could certainly use more, especially with lottery revenues peaking, she said.

"We have a waiting list of 300 folks."

Contact Sunday News staff writer Paula Wolf at pwolf@lnpnews.com.