How much the average person spends on the lottery in each state
Wyoming hasn't caught the lotto fever just yet
JACKSON HOLE, Wyo. — Wyomingites don’t exactly have lottery fever when compared to other states. A new survey compiled by 24/7 Wall St. finds the Cowboy State weighs in second to last in spending per person on lottery tickets.
Wyoming
> Lottery spending per adult: $51 (2nd lowest)
> Total lottery ticket sales: $22.5 million
> Prize money awarded in 2020: $13.8 million
> Median household income: $65,003 (19th highest)
In 2019, states raked in nearly $81 million in income (excluding commissions) on lottery ticket sales, according to the Census Bureau. The 44 states with state lotteries doled out $52.5 million in winnings that same year. States typically funnel lottery revenues into a general fund, though some states earmark the dollars for specific areas, such as education or senior services, the National Conference of State Legislatures notes.
To calculate how much the average person spends on the lottery in every state, 24/7 Wall St. reviewed U.S. Census Bureau data on the 2020 lottery income and adult population for each state. Five states have no state lotteries, but in those that do, adults spend between an average of $40 annually to $947.
The chances of winning are exceedingly low. For example, the chances were about one in 292.1 million for the Powerball drawing in November 2021. To put that into perspective, the risk of dying from a bee sting is one in 59,507. It all comes down to sheer luck, so here are America’s luckiest — and unluckiest — states.
Despite the slim chances, people still hand over their hard-earned cash in the hopes of winning big with a random sequence of numbers. But that windfall is not as big as one might think thanks to—you guessed it—taxes. That huge check is considered ordinary taxable income for federal and state tax purposes, so the IRS takes 24% of the winnings off the top. After that, it depends on state taxes. Winners in states without an individual income tax (Texas and Florida, for example) would collect a bigger share of their winnings. California and Delaware sponsor lotteries but do not tax the winnings.
New York state grabs the highest amount of taxes at 8.82%. In Massachusetts, where spending per person ranks highest at $947, the state shaves off a relatively modest 5%. Despite low odds and a humongous tax bite, people continue to play the lottery.
