Jackpot Fatigue, Casinos Siphon Off State Lottery Revenue

Fewer people are purchasing lottery tickets these days.

July 21, 2017

WASHINGTON – These days, people aren’t as willing to take a chance on a lottery ticket, the Lottery Post reports. Of the 44 states with lotteries, 22 saw revenue drop between 2014 and 2015, according to a recent report by the Pew Charitable Trusts. From 2013 to 2014, 21 states reported decreases in lottery revenue.

In Missouri last year, lottery revenue declined 3.3%, while it plummeted 3.2% in Rhode Island and 2.6% in West Virginia. Other states have reported similar decreases too.

The report pointed to “jackpot fatigue” (a decrease in regular lottery play until the pot jumps to headline-making numbers) as one of the reasons for the falling numbers. In addition, fewer millennials play the lottery, while other gambling forms, such as casinos, have been making inroads into state lottery territory.

In 2015, state lotteries brought in a combined revenue of around $21.4 billion. A few states use that income to fund general budget items, but most use it for specific programs, such as environmental protection and education or tourism. States are becoming more aware of the need to keep their lotteries front and center in players’ minds, such as Massachusetts’ request for a bigger advertising budget.

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