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

Executive Director of the Office of Lottery and Gaming. Mr. Randy Burnside.
Featured
Exclusive interview
DC Lottery Director Randy Burnside discusses Millionaire for Life

In this exclusive interview, we discuss this exciting new lottery game that can pay out millions every day.

Alex Cramer profile pic

Alex Cramer

Signs with details of winning tickets sold at a local New York Lottery retailer.
Small states, big jackpots: The lottery underdogs beating the odds

What Iowa, Virginia, and Rhode Island know about winning the lottery that New York doesn't.

Samantha Herscher profile pic

Samantha Herscher

A lottery ball drawing machine.
The end of live lottery draws? A shift players should watch

Traditional ball machines are being replaced, but does that impact how players trust the game?

Todd Betzold profile pic

Todd Betzold

Recent articles

View All
Executive Director of the Office of Lottery and Gaming. Mr. Randy Burnside.
Featured
Exclusive interview
DC Lottery Director Randy Burnside discusses Millionaire for Life

In this exclusive interview, we discuss this exciting new lottery game that can pay out millions every day.

Alex Cramer profile pic

Alex Cramer

The Powerball logo next to the U.K National Lottery logo over a white background.
The U.K. is set to join Powerball, raising stakes for U.S. players

More players may boost prizes, but U.S. winners could face more shared jackpots.

Todd Betzold profile pic

Todd Betzold

The San Agustín lottery office, at R. Pío XII, 1, 15001 A Coruña, Spain
€4.7M ticket dispute puts lottery shop owner on trial

A shop owner's actions are under scrutiny as a family claims a winning ticket was never revealed.

Todd Betzold profile pic

Todd Betzold

Signs with details of winning tickets sold at a local New York Lottery retailer.
Small states, big jackpots: The lottery underdogs beating the odds

What Iowa, Virginia, and Rhode Island know about winning the lottery that New York doesn't.

Samantha Herscher profile pic

Samantha Herscher