Jackpot! These 10 States Make the Most Money From Lotteries
Policy + Politics

Jackpot! These 10 States Make the Most Money From Lotteries

ANDREW KELLY

U.S. states earned $64 billion from lotteries in 2014, but the income from Powerball and other games wasn’t spread equally, according to Census Bureau data — and the states that get the most lottery revenue are not always the ones that dole out the most prize money.

 

Here are the 10 biggest winners from lotteries:

States that make the most from lotteris

Related: How States Profit from Powerball Madness

1. New York
Lottery revenue: $7.94 billion

Lottery prizes and administration costs: $4.80 billion

Proceeds kept: $3.14 billion

New York was the big winner from lottery games in 2014, and has been at the top of the list for many years. Of the $8 billion in lottery revenue the state received in 2014, it spent $4.41 billion on prize money. New York also takes a 5 percent cut from revenues for administration. The state kept the remaining 40 percent of the lottery revenue, and the money was mostly spent on education.

2. California

Lottery revenue: $5.03 billion

Lottery prizes and administration: $3.34 billion

Proceeds kept: $1.67 billion

California kept a third of its $5 billion in lottery revenue, most of which the state says goes toward public education. The state spent $3.08 billion on prize money. Among the top 10 biggest lottery earnings states, California spent the greatest share on administration at almost 6 percent.

3. Florida

Lottery revenue: 5.07 billion

Lottery prizes and administration: $3.58 billion

Proceeds kept: $1.49 billion

Florida kept almost a third of its $5 billion in lottery revenue, which goes toward the state’s Educational Enhancement Trust Fund. The state spent $3.43 million on prize money, and 3 percent of revenues were spent on administration.

4. Massachusetts

Lottery revenue: $4.85 billion

Lottery prizes and administration: $3.61 billion

Proceeds kept: $1.24 billion

Massachusetts trails only New York for prize money doled out. The state awarded $3.5 billion to winners — 72 percent of the state’s total lottery revenue. Massachusetts spent 2 percent of revenue on lottery administration, while 26 percent went to cities and towns according to a formula established by the state legislature. Communities that receive the money can decide how to spend it.

5. Texas

Lottery revenue: $4.15 billion

Lottery prizes and administration: $2.93 billion

Proceeds kept: $1.22 billion

Two-thirds of Texas’ $4.15 billion in lottery revenue went to prize winners ($2.74 billion), while the state spent 5 percent on administrative costs. An additional 29 percent of revenues went back to the state, mostly for the state’s Foundation School Fund.

6. Pennsylvania

Lottery revenue: $3.53 billion

Lottery prizes and administration: $2.44 billion

Proceeds kept: $1.09 billion

Pennsylvania awarded just over two-thirds of its $3.53 billion in lottery revenue to winners. Administrative costs represented just under 2 percent of revenue, and the state kept 31 percent of revenue, mostly for programs that benefit the elderly.

7. Georgia

Lottery revenue: $3.52 billion

Lottery prizes and administration: $2.57 billion

Proceeds kept: $948 million

Georgia kept 27 percent of $3.52 billion in lottery revenue for its Lottery for Education Account, while 69 percent of revenues went to prize winners ($2.41 billion). The state spent 4.3 percent of proceeds on lottery administration.

8. New Jersey

Lottery revenue: $2.74 billion

Lottery prizes and administration: $1.84 billion

Proceeds kept: $903 million

New Jersey’s lottery proceeds went to support government agencies responsible for agriculture, education, human services, military and veterans’ affairs and higher education. The state spent 2.4 percent of lottery revenues on administration.

9. Maryland

Lottery revenue: $2.01 billion

Lottery prizes and administration: $1.13 billion

Proceeds kept: $879 million

Maryland used 44 percent of lottery revenue on education, public health, public safety and environmental programs. Prize money ($1.02 billion) accounted for 51 percent of revenues, while 5 percent went for administrative costs. Proceeds from lotteries and casino gaming are the fourth-largest contributor to the state’s coffers after income, sales and corporate taxes, according to the Maryland Lottery and Gaming Control Agency.

10. Ohio

Lottery revenue: $2.6 billion

Lottery prizes and administration: $1.8 billion

Proceeds kept: $778 million

Ohio awarded $1.7 billion, or two-thirds of its lottery revenues, to winners. Administrative costs represented 3.8 percent of revenues, while 30 percent went to the Lottery Profits Education Fund. 

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