Lotteries No Longer a Winner for Many States

Instant ticket sales steady, but state lotteries struggle to meet ambitious revenue targets.

December 23, 2014

NEW YORK – In recent years, lotteries have become more of a gamble for the very states that host them, as data from the North American Association of State and Provincial Lotteries (NASLP) shows that lottery sales in 2014 remained steady from the previous year.

Lottery revenue is a big deal in many states and can become a political hot potato, especially if lotteries fail to meet the financial goals set by the states that run them. For instance, New Jersey officials have come under fire recently as the state saw lottery revenue fall by more than 9% in the third quarter of 2014 — a far cry from the promised 7.4% growth.

And New Jersey isn’t alone, with officials in Illinois, Maryland and Missouri lamenting falling lottery revenue in their states. Lottery officials, however, insist there's no reason to be concerned about the lackluster sales. Scratch-off instant ticket sales continue to do well, in spite of decreases in other forms of lottery revenues.

Dependence on lottery revenue varies by state. According to 2010 data from the National Council of State Legislatures, lottery ticket sales accounted for 8% of state revenue in Massachusetts, 7% in Georgia and 4% in Florida. Nationally, the average is 4.6%.

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