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

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

Lotto.com CEO, Tom Metzger.
Featured
Exclusive interview
Rising tides lift all boats: Why digital lottery boosts retail sales

In an exclusive interview, Lotto.com CEO Tom Metzger shares the lottery industry's best-kept secret.

Samantha Herscher profile pic

Samantha Herscher

A Powerball ticket inside a Valentine's Day gift box.
Lottery tickets can be last-minute gift ideas for Valentine's Day

Why Valentine's Day is a great time to give the gift of lottery tickets.

Halley Bondy profile pic

Halley Bondy

A bunch of lottery tickets and scratch-offs spread over a table.
Manifesting a 2025 lottery jackpot: My year chasing the big win

From long shots to record-breaking rollovers, I watched the numbers rise. Was belief enough to change my luck?

Todd Betzold profile pic

Todd Betzold

Colorado Lottery Director Tom Seaver.
Exclusive interview
Rocky Mountain reinvention: Colorado Lottery embarks on transformation

Colorado Lottery Director Tom Seaver reveals the details on new games, retailers, and a digital future.

Samantha Herscher profile pic

Samantha Herscher

Recent articles

View All
Lotto.com CEO, Tom Metzger.
Featured
Exclusive interview
Rising tides lift all boats: Why digital lottery boosts retail sales

In an exclusive interview, Lotto.com CEO Tom Metzger shares the lottery industry's best-kept secret.

Samantha Herscher profile pic

Samantha Herscher

A Powerball ticket inside a Valentine's Day gift box.
Lottery tickets can be last-minute gift ideas for Valentine's Day

Why Valentine's Day is a great time to give the gift of lottery tickets.

Halley Bondy profile pic

Halley Bondy

Patrick Dallas of Cumming, Georgia, who recently pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering.
Man admits role in $1M multi-state lottery scam targeting seniors

Authorities say seniors were promised massive prizes but first had to send cash, gift cards, and luxury watches.

Todd Betzold profile pic

Todd Betzold

A picture of the $4.14M record-winning Michigan Lottery Detroit Lions Rush for Riches Fast Cash ticket.
Lions-themed ticket roars to $4.14M record win

The Fast Cash jackpot crushed the previous $2.39M mark for the Michigan Lottery.

Todd Betzold profile pic

Todd Betzold