Top-10 lottery revenue producing U.S. states

27 October 2008

Forty-three states across the U.S. operated some sort of lottery in 2007, generating an astounding $21 billion, according to the fifth edition of Casino City's North American Gaming Almanac, the mother of all gaming almanacs. The massive 684-page almanac is now available and it is packed with gaming industry details and information on every aspect of the market on the continent.

Published in late September by Casino City Press, the almanac includes market, financial, legal and regulatory information about land-based and online gaming in the U.S. and Canada. It includes profiles for each state and province, and more than 1,000 charts, tables, graphs and lists illustrate everything from revenue by gaming activity to total revenue by state to the gaming percentages of both country's gross domestic product and per capita revenues.

For this week's list we decided to break down the Top-10 lottery-revenue producing states in the U.S., led by New York, which brought home nearly $3 billion.

For more information about our almanac, or to purchase one, please visit the Casino City Press Web site.

10. Ohio - $926 million
This number has been on the rise for the last four years and it is sure to increase again next year after the state announced in March that keno machines would be introduced into taverns, restaurants and clubs. The keno action began in July and is only allowed in establishments with on-site alcohol consumption that are also licensed as lottery dealers.

9. New Jersey - $974 million
2007 revenues from the Garden State fell 3.37% this year, down from just over $1 billion in 2006. The New Jersey State Lottery has been around since 1969 and games include Mega Millions, Pick-6 Lotto, Jersey Cash 5, Pick-3, Pick-4 and Instant Match.

8. Michigan - $1 billion
Lottery revenues were up 7.8% and topped the $1 billion mark for the first time in 2007, which is good news for the School Aid Fund for K-12 education since the sale of lottery tickets provides for funding and operation. .

7. Massachusetts - $1.2 billion
After hitting a high of $1.273 billion in 2004, Bay State revenues have dropped each year since, including the dramatic 4.26% fall in 2007. Lottery funds are not earmarked for any specific programs in Massachusetts, which allows the cities and towns to choose how they would like to use the funds generated.

6. Pennsylvania - $1.23 billion
After increasing more than 10% in 2005 and another 5.3% in 2006, Pennsylvania numbers were down 1.73% in 2007. By law, the Pennsylvania Lottery must contribute $.30 of each dollar earned to state programs and $.40 to players in the form of prize money.

5. Texas - $1.45 billion
The Texas lottery is fairly new after being started in 1991. Revenues hit an all-time high in 2006 with $1.46 billion and fell just under 1% in 2007.

4. Georgia - $1.48 billion
This is another fairly new lottery – it began in 1993 – and revenues continue to improve with each passing year. 2007 marked the third straight year that revenues climbed better than 5%. There is still a bill in the Senate that if passed will allow for lottery sales over the Internet.

3. California - $1.5 billion
California hit a high of $1.59 billion in revenue back in 2005, but the 2007 number is down more than 6% from 2006. In April, 2008, Governor Arnold Schwarzenegger signed a bill that would end a four-year legal battle over California's participation in the multistate Mega Millions lottery game.

2. Florida - $1.66 billion
This is the fourth straight year that the Sunshine State has seen at least a 3% increase in lottery revenues and if Governor Charlie Crist has anything to do with it, that trend will continue. In February, 2008, Crist reiterated his desire to expand the lottery, which he hopes will bring the state additional revenue. In addition, lottery officials are looking to reintroduce the instant ticket vending machines that were eliminated five years ago by former Gov. Jeb Bush.

1. New York – $2.7 billion
In 1967, New York became the second state in the U.S. to operate a lottery. Forty years later, the operation generated a U.S.-high $2.71 billion. Legislation is in action that would help create a permanent education fund by long-term leasing part of the lottery and its profits to a private investment. The plan could create a $4 billion endowment for higher education and maintain $2 billion a year for K-12.