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North Carolina's lottery is raking in 25 percent more money than in the same period last year, part of a national trend in which lotteries are seeing gains despite atmospheric gas prices and a weak economy.

The state Education Lottery grossed about $189.6 million in lottery sales in July and August, compared with a little over $152.1 million in the same period last year, said Thomas Shaheen, executive director of the Tar Heel lottery.

Shaheen attributed the $37 million increase to higher payouts that state legislators have approved for scratch-off, instant-winner games. So the state is not reaping a windfall from the increased sales volume, Shaheen said.

"You have to take into account that we are paying out much higher amounts than we were last year at this time," he said. "As much as anything, this has to do with last summer's sales being much lower than they should have been."

North Carolina's lottery is only in its third year, so there's no long-range data to judge player behavior in this slowdown compared with that in other downturns.

But other states also have been chalking up strong results from their more established lotteries. The New York Times reported last week that of 42 states with lotteries, at least 29 logged increased sales in their most recent fiscal year.

Of the 29, all but seven set sales records last year. And some state officials said that despite a tide of depressing economic news, their lotteries also are on course to set records this year, too.

Some studies by university researchers suggest that when times get tough, lotteries gain in popularity.

Some people see them as a logical response to financial adversity, a relatively inexpensive shot at quickly turning the tables on a sour economy, research suggests.

Shaheen discounted such psychologizing, saying he believes lotteries are buffeted by economic downturns the same way as other goods and services that compete for people's discretionary spending.

"If it wasn't for the economy, I think our growth would have been greater," Shaheen said.

North Carolina officials saw the pace of sales falter this spring when gasoline prices rose, he said.

"We were going strong. Then when the gas crunch hit in March, it started to level off."

His point was borne out Friday afternoon at the Gate outlet on West Lee Street where cars were lined up several deep waiting to fill up at the pumps, and almost nobody was buying lottery tickets.

A clerk said drivers seemed too preoccupied by the run on the pumps triggered by Hurricane Ike to bother with lottery tickets.

The business in lottery tickets was steady, but not booming Friday at Sweets & News in Four Seasons Town Centre, recently recognized by state officials for a 118-percent jump in lottery sales in the past three months.

Customer Kevin George said he understood why increased lottery sales and a shrinking economy might go hand in hand.

"I believe it's more of a temptation with gas prices and other things going up the way they are," said the Greensboro resident, who had just bought a $1 ticket in the $5,000 Payday game. "It's tempting to want to intervene and see if you can get out ahead."

Contact Taft Wireback at 373-7100 or taft.wireback@news-record.com