Lottery Statistics and Revenue by State

Americans spent $104.7 billion on lottery tickets in 2024, according to the U.S. Census Bureau -- a record high and a $1.4 billion increase from 2023. That works out to roughly $321 per capita in states that offer the lottery. For most players, the math never works out: lottery proceeds are distributed among a small share of winners, and in no state do prizes paid out exceed what players spend.

Instead of trying their luck, Americans can put that money to work. The best high-yield savings accounts grow balances without any risk, and investing through a brokerage offers the potential for long-term gains that can exceed any likely lottery return.

Here's a breakdown of lottery revenue and spending by state, how much states collect in proceeds, and what the data shows about who actually wins.

Lottery income by state and per capita

Massachusetts residents spent $856 per capita on lottery tickets in 2024, more than $250 more than any other state, according to the U.S. Census Bureau. North Dakota residents spent just $48 per capita, the least of any state with a lottery.

• California, Florida, Texas, and New York generated the most total lottery revenue. California and New York each brought in roughly $9 billion in lottery sales in 2024. Texas and Florida each collected close to $8.4 billion and $8.8 billion, respectively. Together, those four states accounted for more than a third of total U.S. lottery sales.
• Despite ranking 15th by population, Massachusetts generated $6.1 billion in lottery sales in 2024, fifth-highest nationally. Massachusetts Lottery Executive Director Mark William Bracken has attributed part of this to residents of neighboring states crossing the border to take advantage of higher payout rates.
• Per-capita spending varies widely by state. Virginia residents spent $597 per capita in 2024, second only to Massachusetts. At the other end, North Dakota, Wyoming, Montana, New Mexico, and Oklahoma all came in under $85 per capita.

Lottery proceeds, the state tax revenue remaining after prizes and administrative costs are paid, accounted for 2% of total state taxes collected among the 45 states that run lotteries in 2024, according to the U.S. Census Bureau. West Virginia, Rhode Island, and South Dakota relied most on lottery proceeds, each exceeding 6.5% of total state tax revenue. Lottery revenue made up less than 0.5% of total state tax revenue for North Dakota, Montana, New Mexico, and Wyoming.

Lottery prize winnings and losses per capita by state

In every state, the average player loses money on lottery tickets. Rhode Island residents lose the most per capita, $353, followed by West Virginia at $318 and Oregon at $248, according to an analysis of the most recent U.S. Census Bureau data.

• Virginia offers the highest prize payout rate of any state, but players still lose money overall. Virginia pays out $0.80 in prizes per dollar spent on a ticket on average, meaning residents lose roughly $0.20 on every dollar spent. Kentucky ($0.75) and Missouri ($0.74) follow.
• Rhode Island, West Virginia, Oregon, and South Dakota return the least in prizes per dollar spent. Each pays out roughly $0.21 on the dollar or less, meaning players in those states lose close to $0.80 on every dollar spent on a lottery ticket. Those losses are concentrated among frequent players, while occasional winners capture the bulk of prizes paid out.
• Massachusetts residents receive the most in prizes per capita, $633, on average, but still lose $224 per capita on net. That prize figure is a population-wide average. It includes the full population, not just the small share of residents who win. High total lottery spending drives a high total payout, but the average resident is still down significantly.
  

Even in the most player-friendly states, the house always wins. No state lottery returns more in prizes to its players than it collects in ticket sales.

Lottery income and revenue over time

Lottery sales have grown nearly every year since 2012, rising from $59.3 billion to $104.7 billion in 2024, according to the U.S. Census Bureau. The largest single-year increase came between 2020 and 2021, when sales jumped $15.4 billion.

• Total lottery sales hit a record $104.7 billion in 2024. Prizes paid out totaled $70.2 billion. States collected $29.7 billion in proceeds after prizes and administrative costs.
• Proceeds as a share of total sales have declined over time. States kept 32.8 cents of every lottery dollar in 2012. By 2024, that figure had fallen to 28.3 cents, as prize payouts have grown faster than revenue.
• Administrative costs have grown steadily but remain a small expense. Lottery administration costs reached $4.9 billion in 2024, roughly 4.6% of total ticket sale revenue, up from $2.8 billion in 2012.

The data shows lottery spending has proven resilient even during economic downturns. Sales dipped slightly in 2020 but rebounded sharply the following year.

Is playing the lottery worth it?

Playing the lottery is not a sound financial strategy for growing long-term wealth. The odds of winning a Powerball jackpot are 1 in 292 million, and in every state the average player loses money year over year.

The $321 per capita Americans in lottery states spent on tickets in 2024 could instead be directed toward a high-yield savings account, a certificate of deposit, or a diversified investment portfolio -- options that grow wealth without requiring luck. Investing through a brokerage can offer more upside than savings products, though with additional risk.

The lottery's appeal is understandable. But the numbers show it has a reliably negative expected return and is not a path to financial security.