Earlier this year, a man from Oregon won the fourth biggest Powerball jackpot worth $1.3 billion. Cheng Saephan divided the prize with his wife and friend. Thus, he took home $422 million. However, there are bigger winners than Charlie. State governments are the real winners due to US lottery ticket sales.
Each state government receives almost a third of the lottery payout. The North American Association of State and Provincial Lotteries (NASPL) reports that U.S. lottery sales exceeded $113.3 billion in fiscal year 2023, and state governments pocketed almost $37 billion.
According to Price per Head Bookie specialists in the betting industry, states received $28 billion in 2022 from lottery sales. They said that the sum is less than 2% of overall state tax collection, which sounds great but is relatively small. According to an article by Vox last year, the state receives no more than 40% of the lottery revenue. One news source called it a “drop in the bucket” compared to the state’s budget.
States that Made the Most Out of US Lottery Ticket Sales
Each of the 45 states plus the District of Columbia, Puerto Rico, and the US Virgin Islands has its lottery, with rules that vary from one jurisdiction to the next. In 2022, the amount collected from lottery sales per adult in the United States was around $375, as reported in the annual report on state government finances by the U.S. Census Bureau.
According to bookie gambling news reports, the South Atlantic and New England states sold more state lottery tickets per adult than any other region. The highest amount spent per adult was in Massachusetts, at $1,037. Rhode Island came in second, with $627 worth of sales per capita.
The states must first pay the prize money and operate and advertise. After this money is distributed, the states will retain the leftover funds, as stated by NASPL. Several states put their lottery winnings in a general fund and other forms of taxation. Education, veteran affairs, economic development, and environmental concerns are among the many additional reasons that lottery revenues support in other cases, according to NASPL.
In 2022, South Dakota was unrivaled when allocating lottery funds to state initiatives. Over 75% of revenue from the South Dakota lottery flows to the state coffers, and payments for prizes are received around 18%.
How Often Do Americans Play the Lottery
Roughly 50% of the US population plays the lottery annually. The accumulation of a Powerball or Mega Millions jackpot worth hundreds or billions of dollars often prompts such people to purchase a lottery ticket.
The folks who play the lotto every day and every week are the ones who are paying for it at an inflated rate. Approximately 1 in 8 Americans purchase a lottery ticket every week. Daily, weekly, and monthly lottery play is more common among males than women.
Aside from playing the lottery, Americans also enjoy betting on sports. Thus, many people want to learn how to open a sportsbook in the US.
