LOTTERY INDUSTRY

Lotteries Around the World

Lotteries are a big business, used by governments worldwide to raise money for many purposes. There are publicly operated lotteries on almost every continent – in at least 100 countries and 200 jurisdictions worldwide.

1. Lotteries are operated by national, state or provincial governments, and cities.
2. Lotteries are regulated by national, state or provincial governments.
3. Lottery tickets are sold at more than 240,000 locations in North America, most of which are retail outlets such as convenience stores, gas stations and supermarkets.
4. Retailers are paid a small commission on tickets sold, ranging from 5 to 8 percent, usually with bonuses for the sale of winning tickets or exceeding sales goals.
5. Worldwide lottery sales were almost $224.3 billion in 2007.
6. Since the New Hampshire lottery was founded in 1964, lotteries have raised over $250 billion for government programs in North America. (through FY07)
7. In fiscal year 2007 U.S. lotteries turned over $17.6 billion ($US) to their beneficiaries.

Popular Games

1. Most lotteries offer instant or scratch-off tickets.
2. Keno and video lottery terminals are also popular.
3. Outside of the U.S. various kinds of sports betting is common.
4. There are also some raffles or passive games.
5. A few government lotteries, including those in Ontario and Quebec, also operate casinos.

[back to top]

Where does the state’s share of lottery sales go?

Several state lotteries are dedicated exclusively to education, among them California, Florida, Georgia, Illinois, Michigan, New Hampshire, New Jersey, New Mexico, New York, and Ohio.

Many states add the lottery profits to their general funds: Connecticut, Delaware, District of Columbia, Louisiana, and Rhode Island.

Many states split revenues between education, the general fund, and other purposes, including Arizona, Iowa, Kentucky, Missouri, Montana, Texas, Vermont, Washington and West Virginia.

Some other interests supported by lottery revenues:

1. Ballparks and Stadiums: Maryland, Washington
2. Environment, Parks and Natural Resources: Arizona, Colorado, Iowa, Maine, Minnesota, Nebraska, Oregon
3. Transportation and Construction: Arizona, Colorado, Indiana, South Dakota
4. Compulsive Gambling Programs: Iowa, Massachusetts, Nebraska

Elderly Support: Pennsylvania, Puerto Rico, West Virginia

Housing: Kentucky, Puerto Rico

Vietnam Veterans: Kentucky.

[back to top]

During 2007:

1. U.S. lottery sales totaled $53.7 billion ($US).
2. Canadian sales reached $7.3 billion ($US).
3. Annual Per capita sales were $189 ($US) in the U.S. and $221 ($US) in Canada

2007 World’s Largest Lotteries (in total retail sales in $U.S., excluding VLT)

1. Italy:  Lottomatica S.p.A. $21.1 billion
2. Spain:  Loterias y Apuestas del Estado. $14.7 billion
3. France: La Francaise des Jeux $13.7 billion
4. United Kingdom: The National Lottery $9.6 billion
5. Japan:  Mizuho Bank Lottery Division $9.3 billion
6. China:  China Welfare Lottery $6.8 billion
7. United States: New York Lottery $6.7 billion
8. Greece: OPAP: $6.0 billion
9. China: China Sports Lottery 5.3 billion
10. United States:  Massachusetts Lottery $4.6 billion

2007 Ten Largest American Lotteries (in total retail sales in $U.S., excluding VLT)

1. New York $6.7 billion
2. Massachusetts $4.6 billion
3. Florida $4.3 billion
4. Texas $3.8 billion
5. Georgia $3.6 billion
6. California $3.2 billion
7. Pennsylvania $3.1 billion
8. New Jersey $2.5 billion
9. Michigan $2.4 billion
10. Ohio $2.3 billion

2007 Highest U.S. Annual Per Capita Sales (excluding VLT)

1. Massachusetts $710
2. D.C. $432
3. Georgia $372
4. New York $347
5. Maryland $295

Source: LaFleur's 2008 World Lottery Almanac

[back to top]