The Economics of U.S. State Lottos

THE ECONDMICS OF US STATE LOTTOS tate lottos have become some of America's favorite games to play. Americans spend $18 billion a year on video games but more than twice that much on the lottery tickets. Look below for breakdown of this industry and how it affects the states. FIRST STATE LOTTO: NEW HAMPSHIRE New Hampshire then joined 1964. forces with Maine and Vermont to form the first US joint lottery game in 1988. றற்றா் பறறறம் முறறறக நறறற மறறற் TODAY 43 STATES OFFER LOTTOS DOODC மறறறம் THE STATES THAT DON'T: ALASKA HAWAII ALABAMA MISSISSIPPI WYOMING NEVADA UTAH TOTAL TICKET SALES ALL STATES COMBINED: $53 BILLION IN 2010 WHERE THAT MONEY WENT: Prizes Revenue $32,783,7792 I152.773000 2,000 $32, 211, 539.000 State $17,671,807,000 Year 2010 2009 $32, 2,221,363.000 $31,497.840.0 $17,685,063.0 $30.8 ,808 104.000 ,000 193.00 208. 2008 2007 2006 REVENUE POWER In 9 states, lotteries provided more revenue per person than the state corporate income tax in 2009. Lottery Revenue per person Corporate Tax Revenue per person $450 $400 $350 $300 $250 - $200 $150 - $100 - $50 $0 Delaware West Virginia Georgia Michigan Oregon Rhode Island South Dakota South Carolina eople who win $600 or more have their take reported to federal and state tax authorities and must pay income taxes of up to 45% on their windfalls. When a winning lottery ticket is sold in a state that state's government wins as well. EARMARKS M. lany states earmark lottery revenue for honorable causes like General Fund education, environment and crime prevention. But often times lawmakers factor in the extra revenue these causes receive and apportion much less from the general fund. Urban Development Economic Expansion Education Environment KANSAS Each state earmarks differently but nearly all states send a large percentage of lottery revenue towards education. Some states have unique uses for lottery funds. Prison Construction (OWA MINNESOTA Veterans Support Game and Fish Fund THETOPSTATES IN 2010 STATES WITH THE LARGEST LOTTO REVENUE: Overall Per Capita $400 2.5 $300 $200 $100 .5 California New Jersey $0 Oregon South Dakota Rhode Island Florida Texas STATES WITH THE LARGEST TOTAL PAYOUTS: Overall Per Capita 4.5. $500 4 3.5 $400 $300 1.5 $200 %24 - $100 .5 0. Florida Texas Massachusetts $0 New York Connecticut Maryland Georgia Sources: kslottery.com/aboutus/faq.aspx ialottery.com/aboutus/History.asp census.gov/govs/state/10lottery.html vgsales.wikia.com/wiki/Video_game_industry abcnews.go.com/US/story?id=D92595&page=D1 nytimes.com/2007/10/07/business/07lotto.html?pagewanted%=Dall mnlottery.com/news_and_info/where_the_money_goes/revenue_distribution/ blogs.reuters.com/david-cay-johnston/2011/07/15/u-s-lotteries-and-the-state-taxman/ New Hampshire 559 22.000 98.000 <67 $2,2 3. Billions of Dollars $2,676,574,000 New York Billions of Dollars 3. $1,252,509,000 $1,057,048,00O $3,951,226,000 New York | $1,044,931,000 $368 Massachusetts $3,174,890,000 $924,160,000 $324 $2,346,162,000 Delaware $313 $2,300, 182 ,000 $484 West Virginia $144 $2,129,144,000 $141 $219 $203 Georgia 621$ $170