The lottery is the most popular form of gambling in the United States. So popular that the lottery tickets sold in 2021 and 2022 generated over $100 billion. That’s more than Americans spend on sports event and movie tickets combined.But who spends all this money, and more importantly, where does it go? The lottery revenue statistics below shed some light on these questions, along with details about the size of the lottery industry, which state and what age group play the lottery the most, how is the money collected from the lotteries distributed, and much more.
Top 10 Lottery Revenue Statistics and Facts
In 2021, the worldwide lottery market was estimated to be worth $366.55 billion.
The revenue generated from lottery tickets sold in the US passed the $100 billion mark for the first time in 2021.
The total revenue generated by lottery tickets sold in the US in 2022 was $107.9 billion.
An average of 95% of the revenue generated through lottery games in the US goes back to the economy.
$28.6 billion of the lottery ticket revenue in the US was transferred to government program beneficiaries in 2022.
The revenue from lottery ticket sales in Florida reached $9.3 billion in 2022.
20% of the lottery players generate 71% of the lottery revenue in Minnesota.
With $805.30 per capita, residents of Massachusetts spend the most on the lottery in the US.
The average American spends $69.52 on lottery and pari-mutuel betting per year.
8% of Americans say they tried to get out of debt by playing the lottery.
General Stats on Lottery Sales
In 2021, the worldwide lottery market was estimated to be worth $366.55 billion.
The value of the global lottery industry is expected to grow in the next few years. According to the latest predictions, the market should continue growing at a 3.10% CAGR until 2028, when it is expected to reach a value of $405.20 billion.(FNF Research)
The total revenue generated by lottery tickets sold in the US in 2022 was $107.9 billion.
The above figure accounts for the sales of lottery tickets in 45 states in the US, the District of Colombia, Mexico, Puerto Rico, and the US Virgin Islands all offer government-operated lotteries. Across the USA, lottery tickets are sold at around 216,000 locations. (NASPL)
The revenue from lottery ticket sales in Florida reached $9.3 billion in 2022.
According to the most recent data, revenue generated from lottery tickets sold in Florida exceeds that of Canada, where ticket sales generated $8.9 billion. The revenue generated from lottery tickets sold in California matches Canada’s 8.9 $billion. On the other hand, Ontario has the highest lottery revenue in Canada, with $4.6 billion. (NASPL)
The revenue generated from lottery tickets sold in the US passed the $100 billion mark for the first time in 2021.
The US lottery revenue history indicates that ticket sales have been growing by $10 billion every three or four years in the past decade. In 2009, the earliest available data point, lottery revenue in the US was almost half the size it is today, at $58.25 billion. Just three years later, in 2012, it had increased to $68.78 billion, and in 2016, it reached a figure of $80.55 billion. By 2019, the lottery revenue reached new heights, at $91.32 billion, before reaching $107.9 billion in 2022.(Statista, NASPL)
The average American spends $69.52 on lottery and pari-mutuel betting per year.
Lottery sales statistics for the period between Q3 2017 and Q2 2018 indicate that, at $132.43, Americans between 65 and 74 spend the most on lottery tickets out of all age groups. The age group with the second highest lottery expenditures is Americans between 45 and 54, with $77.04, closely followed by Americans over 75, who spend $74.29 on lottery tickets, per year, on average.Lottery ticket sales data shows that Americans between 55 and 64 spend an average of $63.20, those between 35 and 44 spend $62.08, those between 25 and 34 spend $40.32, while Americans under 25 spend the least, or $7.55 per year.(BLS)
8% of Americans say they tried to get out of debt by playing the lottery.
According to the results from a recent survey, 66% of Americans never play the lottery, 15% play it when there is a major jackpot, 13% play it several times a year, and only 6% play it weekly or monthly. According to the survey, the average American spent $46 and won $156 playing the lottery in the 12 months leading to October 2022.(NY Sports Day)
$28.6 billion of the lottery ticket revenue in the US was transferred to government program beneficiaries in 2022.
State lottery revenue statistics show that since 1964, over $585.5 billion generated through lotteries have been distributed to beneficiaries in different government programs in the US. At the same time, another $81 billion have been raised in Canada. In 2022 specifically, Canada's lottery ticket revenue turned over $3.5 billion to Canadian beneficiaries. (NASPL)
An average of 95% of the revenue generated through lottery games in the US goes back to the economy.
While each state decides how to distribute the revenue generated through the sale of lottery tickets, it only keeps about 5% of it on average. Even though the cost of lottery tickets varies, generally, 65 cents for each dollar spent on a lottery ticket game is distributed back to the players through prizes. Moreover, 24 cents are distributed to government program beneficiaries, and 6 cents to lottery retailers.(NASPL)
20% of the lottery players generate 71% of the lottery revenue in Minnesota.
The Pareto principle is an interesting idea taught in business schools that proposes that 80% of the sales of any product will be generated by 20% of the customers. Lottery statistics suggest that ticket sales follow a similar trend. For example, 24% of the lottery players in Arizona generated 70% of the lottery revenue, 29% of the players in Pennsylvania generated 79% of the revenue, etc.(NASPL)
Lottery Revenue by State
With $805.30 per capita, residents of Massachusetts spend the most on the lottery in the US.
According to a recent study, Massachusetts residents spend 77% more on lottery tickets than New Yorkers, who spend the second-most per capita at $455.93. Rhode Islanders are third on the list with an annual spend of $429.88 per capita, followed by residents of Georgia, who spend $429.51, and residents of Michigan, who spend $429.51 per capita. (Lending Tree)
North Dakotans spend $32.24 per capita on lottery tickets, the least out of all states in the USA.
Data on lottery sales by state further reveal that residents of Wyoming spend the second least on lottery tickets, with per capita expenditures of $40.97, followed by residents of Montana with $58.62 per capita. Residents of New Mexico and Oklahomans are also among the bottom five, with annual per capita expenditures of $63.83 and $71.23, respectively.(Lending Tree)
Missourians win 71 cents per every dollar they spend on lottery tickets.
Residents of Missouri, who spend $244.79 per capita on lottery tickets, win $172.72 per capita, and have the highest lottery percentage payout in the USA, at $0.71 per dollar. Interestingly, residents of Massachusets who spend the most on lottery tickets, or $805.30 per capita, also win the highest per capita amount of $560.81, but that only adds up to $0.70 per dollar, or the second most in the USA. The residents of three different states, Idaho, Maine, and South Carolina, are tied for the number three spot, with a percentage payout of $0.69 per every dollar they spend.(Lending Tree)
Residents of four US states win less than half the money they spend on the lottery.
Data on lottery sales reveals that South Dakotans, who spend $207.97 per capita on lottery tickets, only win $40.49 back, which amounts to only $0.19 for every dollar they spend. West Virginians and Oregoners also made the unluckiest players list, with $0.22 and $0.23 returns.Fascinatingly, residents of Rhode Island are among the top three highest spenders, with $429.88 per capita spent on capita, but only win $148.25 per capita, or $0.34 per dollar. In contrast, North Dakotans, who spend the least in the entire USA, or $32.24 per capita, win almost half their money back, or $16.55 per capita, amounting to a lottery percentage payout of $0.51 per dollar.(Lending Tree)
Residents of only two states in the USA spend less than a dollar per $1,000 of their income on the lottery.
Namely, data reveals that residents of North Dakota and Wyoming spend $0.52 and $0.66 per $1,000 of their personal incomes on lottery tickets. Conversely, residents of Massachusetts spend the most, or $10.26, followed by Georgians, who spend $8.29 per $1,000 on the lottery. (Lending Tree)
Eight states distribute exactly 50% of the lottery revenue to prizes.
Powerball revenue distribution stats show that Oregon distributes the largest percentage of the lottery revenue to prizes, with 92.5%. The state with the second-largest share is Rhode Island, with 80.5%, followed by Massachusetts, where 72.5% of the revenue is allocated to prizes. Next on the list is Arkansas, with 68.1%, and Idaho and Pennsylvania, which distribute an equal share of 67%.The eight states that allocate only 50% of the revenue to prizes are Colorado, Maine, Missouri, Montana, Oklahoma, South Dakota, West Virginia, and Wyoming.(Powerball)
The Summary
As the lottery revenue statistics illustrate, the popularity of the lottery in the US is ever-growing. Despite the criticism and classification as a “poor man’s tax” by some people, the lottery keeps generating revenues larger than the year before.Considering Americans spend $69.52 per year or $10.26 per $1,000 of their income on the lottery, it’s safe to say that the lottery is harmless enough and all in good fun.However, the fact that 20% of lottery players generate 71% of the revenues, and 8% of Americans try to get out of debt by playing the lottery paints a different picture entirely. Regardless of the minimal cost of lottery tickets, some people are prone to get addicted, which is why it is essential to always promote responsible gambling.
Lottery Revenue FAQ
How much money is spent on lottery tickets each year?
The North American Association of State and Provincial Lotteries reports that sales of lottery tickets across the USA generated $107.9 billion in 2022 and $106 billion in 2021.(NASPL, NASPL)
How much is the lottery industry worth?
The worldwide lottery industry was valued at $366.55 billion in 2021. Global lottery revenue statistics and trends indicate that the industry will grow at a CAGR of 3.10% and reach $405.20 billion by 2028.(FNF Research)
Which state spends the most on the lottery?
According to the most recent findings, residents in Massachusetts spend the most, or $805.30 per capita, on the lottery. (Lending Tree)
The lottery is the most popular form of gambling in the United States. So popular that the lottery tickets sold in 2021 and 2022 generated over $100 billion. That’s more than Americans spend on sports event and movie tickets combined.
But who spends all this money, and more importantly, where does it go?
The lottery revenue statistics below shed some light on these questions, along with details about the size of the lottery industry, which state and what age group play the lottery the most, how is the money collected from the lotteries distributed, and much more.
