All news

Current trends and the future of the Massachusetts Lottery

Boston Fed analyst discusses why Massachusetts residents spend so much more on the lottery than anyone else.

A picture of the Massachusetts State House.
Brant James
Add lotteryusa.com as a preferred source on Google

Massachusetts loves its lottery. Not just the one that helped fund the American Revolution.

In 1971, the Massachusetts State Lottery was launched. In 1974, it became the first in the United States to offer scratch-off tickets in partnership with fledgling Scientific Games, a future gambling industry titan now called Light & Wonder.

And today, Massachusetts residents spend more per capita on the lottery than any others: $839 each year, according to a report recently released by the Federal Reserve Bank of Boston.

Not $839 for those who play the lottery. $839 on average for each of the state's 7 million residents.

Obviously, not all of them can and actually partake, meaning the lottery ticket-buying population is extremely ardent.

Boston Fed senior policy analyst Riley Sullivan said on the organization's Six Hundred Atlantic podcast:

The actual per player average is probably even higher than that. But what we know, based on kind of the available data, is just this per capita number. It's still really jarringly high.

The national average: $293.

Sullivan continued:

A lot will kind of weigh in that they're surprised how high it is, because they don't buy any in a year. So, it's just really concentrated among a smaller pool of people. These really high numbers are coming from these players who are playing much more regularly.

Factors that push Massachusetts' lottery market

Calculating for Massachusetts' higher income rates as compared to the rest of the country, the state's residents spent .99% of their personal income on lottery purchases.

The national average: .45%.

But with lottery players typically coming from lower-income households, the report, titled “New England's Lotteries: Trends in State Revenue and Player Spending” concluded that “even in relatively affluent states, some demographic groups are more inclined than others to participate in lotteries.”

Sports betting hasn't hurt Massachusetts lottery yet

Even with the introduction of legal sports betting in Massachusetts in 2023, the lottery has continued to set records. In fiscal year 2023, the state broke a lottery revenue record of more than $6 billion, with $1.2 billion targeted for education programs, and state and municipal infrastructure.

The highly anticipated online sports betting market, meanwhile, produced $670.3 million that year, according to the Massachusetts Gaming Commission.

The Boston Fed report acknowledged, however, that state lotteries throughout New England and including Massachusetts are not growing at the pace of new forms of gambling like sports betting.

For time being, however, it remains a key part of Massachusetts' gambling appetite.

“It just seems to be a cultural part of the fabric of the region,” Sullivan said.

Comments

0
Loading comments

Related articles

Arkansas Scholarship Lottery Executive Director Sharon Strong.
Featured
Exclusive interview
What happens after someone wins $1.8 billion?

Arkansas Scholarship Lottery Executive Director Sharon Strong explains the high-stakes reality of running a state lottery.

Alex Cramer profile pic

Alex Cramer

A Michigan Lottery Lotto 47 ticket on top of other lottery tickets.
Featured
The math behind Lotto 47

Michigan's Lotto 47 has more layers than its $1 price tag suggests. Here's what the numbers reveal.

Dr. Catalin Barboianu profile pic

Dr. Catalin Barboianu

Recent articles

View All
Arkansas Scholarship Lottery Executive Director Sharon Strong.
Featured
Exclusive interview
What happens after someone wins $1.8 billion?

Arkansas Scholarship Lottery Executive Director Sharon Strong explains the high-stakes reality of running a state lottery.

Alex Cramer profile pic

Alex Cramer

A Michigan Lottery Lotto 47 ticket on top of other lottery tickets.
Featured
The math behind Lotto 47

Michigan's Lotto 47 has more layers than its $1 price tag suggests. Here's what the numbers reveal.

Dr. Catalin Barboianu profile pic

Dr. Catalin Barboianu

A calendar.
The “best” month to win the lottery? Data tells a curious tale

Powerball trends suggest timing patterns, but could player habits, not luck, be driving the results?

Todd Betzold profile pic

Todd Betzold

The Millionaire for Life logo over a background with golden sparks.
Big September change coming to Millionaire for Life prizes

These new rules would make the game's $100,000-a-year prize much harder to keep as a lifetime annuity.

Todd Betzold profile pic

Todd Betzold