The lottery is a popular form of legal gambling in the United States. Lotteries are run by state governments and the revenue generated from lottery ticket sales is often used to fund public programs and services. Americans spend billions of dollars each year on lottery tickets in the hopes of hitting it big and winning a life-changing jackpot. But exactly how much does the average American spend on lottery tickets each year? And what is the total amount that residents in each state and across the nation as a whole spend in pursuit of lottery fortunes? This article will explore the data on lottery spending in the US and provide an in-depth look at how much Americans bet on these games of chance.
Quick Facts on US Lottery Spending
- In 2020, Americans spent over $92 billion on lottery tickets across all states.
- This equates to around $276 per adult in the US.
- Massachusetts residents spent the most per capita at $935 per adult.
- North Dakota spent the least at $58 per adult.
- The single largest jackpot in US history was a $1.586 billion Powerball prize in 2016.
- The lottery makes up a significant source of revenue for state budgets.
Americans clearly have a major appetite for playing the lottery. Billions in ticket sales reflect the excitement and dreams generated by massive jackpot amounts. State governments actively encourage lottery play through marketing and expanding game options. While only a lucky few will ever hit it big, the lottery undeniably captures the public’s imagination.
Total US Lottery Ticket Sales
According to statistics from the North American Association of State and Provincial Lotteries (NASPL), total lottery ticket sales in the US were over $92 billion in 2020. This reflects the combined totals from the 46 states plus Washington D.C., Puerto Rico, and the US Virgin Islands that currently offer government-sponsored lotteries.
To put this figure in perspective, Americans spent more on lottery tickets in 2020 than they did on items like beer ($90 billion) and pizza ($47 billion). Lottery spending also exceeded the combined ticket revenues from all major US sports including the NFL, NBA, MLB, and NHL.
The $92+ billion in lottery ticket sales translates to around $276 spent per adult aged 18 and over in the US. Clearly, playing the lottery is a significant form of entertainment and expenditure for many Americans.
The following table shows the total lottery ticket sales over the past 5 years:
| Year | Total US Lottery Ticket Sales |
|---|---|
| 2020 | $92 billion |
| 2019 | $81 billion |
| 2018 | $77 billion |
| 2017 | $73 billion |
| 2016 | $71 billion |
As the table shows, lottery spending has been on a steady upward climb over the past decade. The COVID-19 pandemic does not appear to have dampened lottery ticket sales either. The peak of over $92 billion in 2020 reflects enduring interest in jackpot dreams during tough times.
Per Capita Lottery Spending by State
Digging deeper into the lottery sales figures reveals interesting variations between states. While lottery products are available in nearly every US state, residents in certain parts of the country tend to spend much more per person on playing these games.
The following table highlights 2020 lottery spending on a per adult (18+) basis across a selection of states:
| State | Per Capita Lottery Spending |
|---|---|
| Massachusetts | $935 |
| New York | $853 |
| Georgia | $621 |
| Maryland | $597 |
| Connecticut | $578 |
| New Jersey | $331 |
| California | $185 |
| Texas | $144 |
| Utah | $75 |
| North Dakota | $58 |
Massachusetts leads the way by a wide margin, with residents spending over $900 per adult on lottery games. Nearby states like New York, Connecticut, and Maryland also see hefty per capita spending. At the other end, more conservative states like Utah and North Dakota have the lowest lottery spending rates. Regional differences in attitudes toward gambling likely explain some of these variations across states. Proximity to major casino hubs may also drive higher spending.
The following map provides a geographic visualization of 2020 per capita lottery spending levels:
In general, northeastern states show the highest per capita lottery expenditures, led by Massachusetts. Southern states toward the lower end include Arkansas, Kentucky, and West Virginia. Western lottery hotspots include Washington, Oregon and Idaho. This map demonstrates how lottery spending patterns align closely with regional values and norms.
Lottery Spending Trends
In addition to breaking down total sales by state, it is insightful to examine how lottery spending has trended over time. The following chart shows per capita lottery spending in the US over the past 20 years:
As illustrated, per capita spending on lottery tickets has increased fairly steadily since 2002. There was a notable spike in spending around 2006. While year-to-year fluctuations occur, the overall trajectory is upwards. In 2002, per adult spending on lottery was around $200 versus closer to $300 by 2020. This 50% increase demonstrates how lottery playing has intensified over the past two decades.
Several factors likely contribute to this growth:
- Lotteries increasing game offerings – more games = more tickets sold.
- Big jackpots driving interest – spikes often occur when mega jackpots are in play.
- General acceptance of lotteries – no longer taboo, playing is mainstream.
- Convenience – lottery tickets sold in more locations now.
- Marketing – aggressive marketing by lottery advertisers.
Essentially, lotteries have become more savvy in how they appeal to consumers. Aligning game design and jackpot management with human psychology is critical. The results are clearly paying off based on the robust ticket sales growth.
Mega Millions and Powerball Jackpots
For many lottery players, the big attraction is the opportunity to win truly massive jackpot prizes. Lotteries have responded by designing games that produce huge jackpots by rolling over prize money when there is no winner. Two of the most well-known examples are Mega Millions and Powerball.
Some key facts on Mega Millions and Powerball jackpots:
- Largest Mega Millions jackpot – $1.537 billion in 2018.
- Largest Powerball jackpot – $1.586 billion in 2016.
- Jackpots often exceed $400-$500 million.
- Odds of winning jackpot are 1 in 302 million for Mega Millions.
- Odds of winning jackpot are 1 in 292 million for Powerball.
- Jackpot rolls over when no winner matched all numbers.
- Games available in 45+ state lotteries.
These massive prizes grab headlines and capture public interest. Even though the odds of winning are infinitesimal, the dollar amounts spark dreams about what people would do with such sudden wealth.
Unsurprisingly, lottery ticket sales surge when advertised jackpots hit astronomical levels. For example, the record $1.5 billion+ Powerball jackpot in 2016 drove unprecedented lottery spending as people flocked for tickets. This produced the highest annual US lottery ticket sales ever at over $80 billion.
While winning even a fraction of that top prize is implausible, the appeal is undeniable. Lotteries leverage our human psychology that focuses more on big potential rewards than the low probability of winning them.
State Lottery Profits
Given the billions in annual ticket sales, state-run lotteries can generate substantial profit. Most of this revenue goes to supporting government programs and services. Education is one of the most common beneficiaries of lottery profits.
Some key facts on state lottery profits:
- In 2020, US lotteries generated $22 billion in profit for state budgets.
- New York leads in profit at around $3 billion annually.
- California averages $1.8 billion in annual lottery profits.
- Texas lotteries earn $1.6 billion per year for the state.
- Georgia averages $1.1 billion in profit off lottery play.
- Other top benefiting states include Florida, Pennsylvania, Michigan, North Carolina and Massachusetts.
Since lottery revenue is often earmarked for education spending, some view playing the lottery as benefitting students and schools. Marketing campaigns often focus on how the lottery gives back to local communities.
However, critics argue lotteries effectively impose a regressive tax on lower income groups who tend to play more frequently. Those with lesser financial means spend a higher proportion of their income on lottery tickets in hopes of striking it rich.
Regardless, lotteries seem here to stay as states have become heavily reliant on the steady profits generated from ticket sales to fund their programs and budgets.
Household Lottery Spending by Income
Examining lottery spending differences across income ranges provides further perspective on who plays the lottery. The following table looks at 2020 lottery spending by household income bracket:
| Income Bracket | Average Annual Lottery Spending |
|---|---|
| Under $25k | $597 |
| $25k – $35k | $701 |
| $35k – $50k | $634 |
| $50k – $75k | $596 |
| $75k – $100k | $473 |
| $100k – $150k | $388 |
| Over $150k | $235 |
Lower income households spend much more in absolute terms on playing the lottery. The under $25k income bracket spends over 2.5X more than households earning over $150k annually. Expressed as a percentage of total income, lower earners dedicate close to 10% of household income on lottery tickets compared to just 0.5% for wealthier households.
This data shows how the lottery in practice places a much higher burden on poorer Americans in relative terms. Those with the least ability to bear the expense are essentially subsidizing public programs for other citizens. This raises debates about whether lotteries are ethical and fair given their regressive nature.
Reasons for Lottery Participation
What motivates people across income brackets to play the lottery in the first place? Here are some of the main psychological and financial incentives:
- Dream of escaping poverty – Big jackpot = financial freedom.
- Fantasy of luxury lifestyle – Wealth lets you purchase anything desired.
- Long shot odds are ignored – People focus on best case, not probability.
- Amusement and excitement – Playing provides entertainment.
- Social bonding – Pools and groups buy tickets together.
- Scarcity drives urgency – Limited number of win opportunities.
- Hope and optimism – Chance for a “lucky break.”
- Tax revenue funds public good – Though regressive in nature.
In the end, lottery play comes down to human psychology. The thrill of playing for life-changing sums outweighs the microscopic odds. States effectively leverage these innate tendencies through product design and marketing. This enables lotteries to generate reliable billions in annual profits.
Conclusion
Lottery play is deeply ingrained in American society and culture. Annually, adults across the US spend over $92 billion on lottery tickets in pursuit of elusive jackpot riches. Certain states like Massachusetts and New York lead in per capita player spending. In recent decades, lottery spending has continued to climb thanks to more games, bigger jackpots, and effective marketing.
While supporting worthy public causes, lotteries do disproportionately impact lower income Americans. And the chances of actually winning are extraordinarily low. Yet the excitement of playing and daydreaming “what if” keeps the lottery thriving. Given the reliable profits produced for state budgets, lottery games seem poised to continue capturing the public imagination for decades to come.