Americans spent an estimated $110.4 billion on lottery tickets in 2024, underscoring the extraordinary scale of the country’s jackpot economy even as newer polling suggests fewer adults are participating in gambling than a decade ago.
The figures, highlighted in a report by The Independent on October 23, show that lottery spending increased from $109 billion in 2023 and $103.3 billion in 2022, according to an analysis of US Census Bureau data by financial marketplace LendingTree. The estimated expenditure works out to $323 per person across the US population.
The spending comes despite exceptionally low odds of winning the biggest prizes. A Powerball jackpot has odds of approximately one in 292.2 million, while Mega Millions has odds of about one in 302.6 million, according to the figures cited in the report.
The numbers expose a central contradiction in America’s lottery economy: the possibility of a life-changing payout continues to attract billions of dollars, even when the statistical probability of securing the top prize is remote.
But the latest figures also reveal a more complicated picture. A separate US Census Bureau analysis found that state lottery ticket sales totalled $104.7 billion in fiscal 2024, with states paying out $70.2 billion in prizes and retaining $34.5 billion in net lottery revenue.
Meanwhile, a Gallup survey published in August 2026 found that 31% of US adults said they had bought a state lottery ticket in the previous year, down from 49% in 2016. The decline suggests that higher aggregate spending does not necessarily mean more Americans are playing. Spending levels, ticket purchases, jackpot sizes and the behaviour of frequent players all matter.
The findings raise questions about who continues to spend money on lotteries, how states benefit from the activity and whether the promise of a financial windfall can encourage households to devote money to a game with very low jackpot odds.
Massachusetts leads lottery spending as state revenues climb
Lottery spending varies sharply across the country, according to LendingTree’s analysis.
Massachusetts recorded the highest per-person expenditure in 2024, at $904, followed by Virginia at $630 and Rhode Island at $567. North Dakota ranked lowest among states operating lotteries, with spending of $51 per person.
The gap between Massachusetts and Virginia was particularly striking. Residents of Massachusetts spent 43.5% more per person than those in Virginia, the second-ranked state.
North Carolina recorded the largest increase in per-person spending, rising 20.3% from $421 in 2023 to $506 in 2024. LendingTree’s analysis linked the increase potentially to digital instant-win games introduced in November 2023, which generated more than $1.3 billion in fiscal 2024 sales.
Virginia followed with an 18.3% increase in per-person spending, while Arizona and Kentucky recorded increases of 13.2% and 13.1%, respectively.
Yet the national rise concealed declines across much of the country. Per-person spending fell in 28 states, increased in 16 and remained unchanged in California. Wyoming recorded the steepest decline, at 8%, followed by Oklahoma at 7.9%.
Five states do not operate state lotteries and were excluded from the analysis: Alabama, Alaska, Hawaii, Nevada and Utah.
The geographic differences matter because lotteries are not simply consumer entertainment. They are also a source of government revenue, making ticket purchases part of the relationship between household spending and state budgets.
US Census Bureau data show that lottery ticket sales nearly doubled between fiscal 2008 and fiscal 2024, increasing from $52.8 billion to $104.7 billion. Prize payments rose from $32.2 billion to $70.2 billion over the same period, while net lottery revenue increased from $20.6 billion to $34.5 billion.
These figures are nominal and have not been adjusted for inflation.
The figures also show that states are retaining a smaller share of sales than they once did. In fiscal 2008, states retained approximately 39 cents of every dollar in lottery sales as net revenue. By fiscal 2024, the share had fallen to about 33 cents.
That shift reflects the growing importance of prize payments in the lottery economy. Larger jackpots can attract attention and ticket sales, but a greater share of the money collected may subsequently be returned to players as prizes.
Lottery proceeds can support public programmes, including education and infrastructure, depending on state law and funding arrangements. However, the gross amount spent on tickets should not be confused with the amount available to governments after prizes and other costs.
The distinction is important for policymakers evaluating lotteries as a revenue source. Higher sales do not translate dollar for dollar into additional public spending, and increased revenue must be weighed against the financial consequences for consumers.
Fewer Americans report playing, but spending remains high
The rise in lottery expenditure coincides with a notable decline in reported participation.
Gallup’s August 2026 survey found that 31% of US adults said they had purchased a state lottery ticket in the previous year, compared with 49% in 2016. The survey also found that the proportion of adults reporting any form of gambling over the previous year had fallen from 64% in 2016 to 45% in 2026.
Reported participation declined across several gambling categories, including casino gambling and office betting pools.
However, survey results require careful interpretation. Gallup found that participation figures were higher in an online survey than in telephone interviews, suggesting that some respondents may be less comfortable disclosing gambling to a live interviewer.
The difference raises the possibility that the telephone survey understates actual participation. It does not, however, establish exactly how much gambling is being missed.
The apparent contrast between falling participation and rising lottery spending can also be explained by differences in the underlying measurements. The $110.4 billion estimate refers to calendar-year 2024 expenditure, while Gallup’s latest participation survey measures self-reported behaviour over the previous year in 2026.
The two figures therefore do not describe the same period or measure the same thing.
A smaller group of frequent players could account for a substantial portion of spending. Changes in ticket prices, the availability of digital games and demand for large jackpots could also influence total sales.
The available figures do not establish which explanation accounts for most of the difference. They do show why participation rates alone cannot provide a complete picture of the lottery industry.
The trend also creates a question for state lottery operators: whether a shrinking pool of reported players will eventually affect revenues or whether higher spending among continuing players can sustain sales.
The affordability question: Are lower-income households bearing more of the cost?
The most consequential issue may be the distribution of lottery spending across income groups.
Research published in the Review of Economic Studies examined demand for state-run lotteries using natural experiments and a nationally representative survey. The study found that households earning below $50,000 spent approximately 29% more on lottery tickets than households earning above $100,000.
The researchers also found that lottery spending was associated with measures of financial literacy, statistical reasoning and behavioural biases. Their modelling suggested that Americans would spend substantially less if those biases were absent, although the estimate depends on the assumptions used and should not be interpreted as a directly observed reduction.
These findings reinforce longstanding concerns that lotteries can place a disproportionate burden on some lower-income consumers.
The economic issue is not simply that poorer households may spend more in absolute terms. A similar expenditure can represent a much larger share of a household’s disposable income when earnings are limited and essential expenses consume most of the budget.
Lottery purchases also differ from ordinary saving or investment. The buyer pays for a chance at a prize, but the expected financial return is generally unfavourable. For the major jackpot games, the chance of winning the top prize is extraordinarily small.
Nevertheless, the decision to play cannot be explained entirely by financial calculations. Some consumers value the entertainment, anticipation and shared experience associated with buying a ticket. A small purchase can also provide an imagined route out of debt or financial insecurity.
Economists therefore distinguish between the enjoyment people receive from participating and the financial value of the bet itself. A game can provide entertainment while still being a poor way to build wealth.
The research does not establish that every lower-income player is financially vulnerable or that lottery spending is necessarily harmful to every participant. But the observed income differences raise legitimate questions about consumer protection, advertising and the design of state-run games.
A separate 2026 study highlighted by INSEAD found that lower-income consumers could also experience higher losses per ticket because of differences in how games are played and designed. Its analysis, based on California market and transaction data, estimated approximately 7% higher losses per ticket for lower-income consumers.
That finding concerns a particular market and should not be treated as a nationwide estimate. It nevertheless points to a further concern: disparities may arise not only from how much people spend, but also from the games they choose and the way their winnings are distributed.
The policy challenge is to balance individual choice, entertainment and public revenue against the risk that people with fewer financial resources spend money on products with low expected returns.
What the jackpot odds really mean
Large jackpots are central to the lottery’s appeal because they transform a small ticket purchase into the possibility of an extraordinary payout.
But the probability of winning the top prize remains remote. Buying additional tickets increases the number of entries held by a player, but it does not make any individual ticket more likely to win.
The distinction between a jackpot and smaller prizes is also important. Some state games offer substantially better odds of winning their top prizes than Powerball or Mega Millions, but their payouts are generally much smaller.
Even when a player wins a prize, the result does not necessarily mean that the overall amount spent on tickets has been recovered. Evaluating a lottery purely by whether a player wins something can obscure the difference between receiving a prize and making a net financial gain.
For consumers, the practical implication is to treat lottery tickets as discretionary entertainment rather than a savings strategy or a dependable route to financial security.
For governments, the issue is more complex. Lottery revenue can support public programmes without requiring the same form of direct taxation as other revenue measures. But the source of that revenue, the distribution of spending and the incentives created by jackpot advertising remain relevant to any assessment of its wider economic impact.
The figures from 2024 and 2026 reveal an industry with substantial revenues, sharply different patterns of spending across states and a potentially changing base of participants.
The central question is no longer just how much Americans spend chasing the jackpot. It is whether the financial model can remain sustainable as reported participation falls, and how governments should weigh the revenue they receive against the costs borne by consumers.
For the millions who continue to buy tickets, the dream of winning remains powerful. The numbers, however, underline the difference between the size of that dream and the probability of achieving it.
FAQs:
- How much did Americans spend on lottery tickets in 2024?
LendingTree’s analysis estimated total spending at $110.4 billion, equivalent to an average of $323 per person. Separately, the Census Bureau recorded $104.7 billion in state lottery ticket sales in fiscal 2024. The estimates use different reporting periods and methodologies.
- Which US state spends the most on lottery tickets per person?
Massachusetts ranked first in LendingTree’s 2024 analysis, at $904 per person, followed by Virginia at $630 and Rhode Island at $567.
- How much money do US states earn from lotteries?
The Census Bureau reported $34.5 billion in net lottery revenue in fiscal 2024, after prize payments. This compares with $20.6 billion in fiscal 2008.
- Are fewer Americans playing the lottery?
Gallup’s 2026 telephone survey found that 31% of US adults reported buying a state lottery ticket in the previous year, down from 49% in 2016. Differences between telephone and online survey results suggest that reported participation may not capture all actual activity.
- Do lower-income Americans spend more on lotteries?
A study published in the Review of Economic Studies found that households earning below $50,000 spent approximately 29% more on lottery tickets than households earning above $100,000. The finding is an average across the surveyed groups, not a description of every household.
- What are the odds of winning a major lottery jackpot?
The figures cited in The Independent’s report put Powerball jackpot odds at approximately one in 292.2 million and Mega Millions at about one in 302.6 million. Players should check the official rules for the relevant game, as odds can change when game formats are revised.