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

Monks praying
Thailand reminds monks: No lottery predictions allowed

A centuries-old ban is back in focus as fortune-telling monks face new scrutiny. But will the warnings stick?

Todd Betzold profile pic

Todd Betzold

Multiple winners hit the Match 5
Multiple states won $1 million Powerball tickets on Saturday

 Four states won $1 million Powerball tiers unusually early

Halley Bondy profile pic

Halley Bondy

New North Carolina Lottery record
Record $6.6B sales push NC Lottery education funds beyond $1B again

From preschool to new campuses, these lottery dollars are shaping the future of education.

Todd Betzold profile pic

Todd Betzold

A scratch-off ticket showing a $2 win.
The secret power of small lottery prizes

Winning $50 or $100 may seem minor, but it tricks the brain into chasing the next jackpot.

Todd Betzold profile pic

Todd Betzold

Recent articles

View All
Monks praying
Thailand reminds monks: No lottery predictions allowed

A centuries-old ban is back in focus as fortune-telling monks face new scrutiny. But will the warnings stick?

Todd Betzold profile pic

Todd Betzold

Police car lights
California thieves drag off a $20K lottery machine

The vending machine was found busted with tickets inside, but officials say they’re useless once deactivated.

Todd Betzold profile pic

Todd Betzold

Carrie Edwards, $150,000 Virginia Lottery winner. Photograph credit: Virginia Lottery.
Virginia woman wins $150,000 lottery: Gives every penny away

Woman honors late husband by giving away $150,000 lottery win to three causes. 

Samantha Herscher profile pic

Samantha Herscher

Surveillance footage of robbery suspect. Photograph credit: Houston Police Department
74-year-old targeted in daylight robbery — police want your help

A lottery ticket errand turned shocking for one Houston man, and he hopes the suspect learns a lesson.

Todd Betzold profile pic

Todd Betzold