Columnist and contributing writer
For years, millions of players bought lottery tickets from their local retailers, waited all day for the draw, and sat in front of their television that evening hoping to hit the jackpot. But while some lottery enthusiasts remain loyal to this style of gameplay, eInstants are quickly becoming the game of choice for those who prefer digital on-demand entertainment.
What the sales data says
The eInstants trend isn’t just supported by observation or anecdotal evidence. Sales data from the North American Association of State and Provincial Lotteries (NASPL) shows exactly how consumers are spending their lottery budget.
In FY2025, total Powerball and Mega Millions sales dropped nearly 40% to $8 billion (from $13 billion in FY2024). Net revenues for eInstant games increased nearly 30% (to $1.3 billion) during that same period. While draw games currently still generate more revenue for states than eInstant games, that could ultimately change if their respective sales trajectories stay the course.
The cause of the shift
Draw games bring the excitement (and the sales) when the potential payout hits $1 billion or higher. In FY2025, there was just one billion-dollar jackpot, so players looking for the chance to win a spectacular windfall were less motivated to buy tickets for smaller grand prizes. But that only explains the decline in draw game sales, not the uptick in eInstant revenue.
Many players are spending more on eInstant games because they align with how they live their lives: on their phones and on demand. They can access these games 24/7 from their mobile devices, eliminating the inconvenience of visiting a store during business hours. They can also find out if they won immediately, rather than hold out for a draw hours away.
Plus, playing eInstants is an engaging experience that provides value, win or lose. Players can choose from a wide variety of colorful, interactive games that fit their interests or catch their eye.
Comparatively, playing draw games is more passive. While players can choose their numbers, they can’t interact with their tickets after purchase. The real (and fleeting) excitement happens during the draw. Then, win or lose, players must wait until the next draw to see if their bet paid off. With eInstants, players can purchase a new game as soon as they’re ready.
Larger industry implications
For the 13 jurisdictions (12 states plus Washington, D.C.) that currently offer eInstant games, the growth in sales seems promising. But we need to study the data more closely to determine if this type of gameplay is actually a fiscal net positive for the industry.
Do eInstant sales bring new dollars into the lottery ecosystem, or are these products cannibalizing sales from draw games and traditional scratch-offs? The former indicates true expansion, while the latter indicates redistribution.
Let’s take a closer look at the numbers. Draw game sales were down around $5B (retail and online purchases combined), while eInstant sales were up roughly $300M. Even if every dollar from lost draw game sales went to eInstant purchases (and there’s no way to prove that), it would only explain around 6% of the decline. There’s no real expansion or redistribution going on here – just a lack of interest in draw games with lower jackpots.
But what happens when we shift the focus to eInstants versus scratch-offs? Traditional scratch-off sales declined by about $423M nationwide. However, since eInstants aren’t available in every state, we can’t draw the conclusion that players are diverting their spending from the classic version of the game to the modern version of the game through that data point alone.
We need to compare eInstant and scratch-off sales at the state level to get a more accurate picture. But when we did that, we discovered that the story was mixed.
For instance:
- In Pennsylvania, scratch-off sales declined 6.2%, while eInstants sales dropped 19%, suggesting that the lottery struggled overall.
- In Washington, D.C., scratch-off sales were up 4%, and eInstant sales increased 3%, a modest upswing for the whole category.
- In North Carolina, scratch-off sales dipped 2.8%, while eInstant sales skyrocketed 125.2%, potentially signaling a true player preference for online gameplay.
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What’s next?
As more states launch iLotteries and sell eInstants, we may see digital gambling products become more popular than their physical counterparts, or we may not. Colorado will likely be the latest state to launch an iLottery. While an official launch date has yet to be announced, the state published a Notice of Intent in June 2026 to award a digital lottery contract to Pollard Banknote through 2034.
Other states may follow suit in the years to come, but the horizon is currently empty. Indiana’s most recent attempt to establish an iLottery died in the legislature this year, and there’s no known timeframe for restarting the conversation.
Data aside, I think scratch-off tickets will be a lottery staple for the foreseeable future. There’s something about holding a physical item in your hand and interacting with it that a screen will never be able to replicate.
Plus, I’m noticing more young adults who grew up with a smartphone in their hands experience digital fatigue and gravitate towards lower-tech options. Many want a phone that functions solely as a communication device, not a handheld computer that manages their lives. I believe that sentiment will influence how they gamble, steering them toward games that require a physical key or coin to play.
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