The price was raised in 2018 to try to protect revenues against already falling sales, but both that year and 2019, which also had a guaranteed £1m. jackpot, failed to respond positively.
A survey of 3,382 Channel Islanders showed that 73% backed returning the price to £2.
‘Islanders felt the £3 ticket price was too high and that the Christmas game should be capped at £2 a ticket,’ said States senior lottery officer Jon Taylor.
‘In addition, instead of starting with a guaranteed £1m. first prize, the top prize will increase as sales rise, as in previous years.
‘These changes reflect the feedback we received from islanders who took part in the survey. We hope that in light of this, and the challenges faced by the community and the charity sector this year, these decisions are well received by our players.’
The 2020 Christmas draw launches tomorrow with a guaranteed first prize of £300,000. That will rise as the number of tickets bought increases, topping the £1m. mark if all 1,500,000 are sold.
The draw will be live on Thursday 17 December and will have more than 65 other prizes on offer.
Those ticket holders will each scoop between £500 and £50,000.
Each ticket also includes an instant win scratch game with prizes of between £2 and £5,000.
The survey also highlighted the popularity of the instant part of the ticket, with 70% of respondents wanting the scratch element of the ticket retained.
‘We are confident that reverting to a £2 ticket will encourage islanders to buy and in turn help support so many worthy causes throughout the Bailiwick,’ said Mr Taylor.
All proceeds from the Christmas Lottery are distributed to local charities.