Billion-Dollar Lottery Wins Mask the Disproportionate Toll on the Poor
It’s been a busy few weeks in the lottery streets, as both Powerball and Mega Millions handed out billion dollar prizes.
First up was Mega Millions and the $1.13 billion won on March 26, which was the ninth-largest jackpot in American lottery history. Not to be outdone, Powerball gave away the eight largest jackpot ever, at $1.32 billion, less than two weeks later.
Yay lottery, right?
Not according to a study done by The Economist, which showed what has long been assumed: The poorer someone is, the more likely they are to spend their money on the lottery, hoping to beat the odds, (which are one in 292 million in the case of Powerball, and one in 302 million when it comes to Mega Millions).
Add in state lotteries, and scratch-offs, and it all rolls into a mind-blowing number.
Utilizing public records requests in the 45 states (and Washington D.C.) that operate lotteries, The Economist found the poorest 1% of zip codes in America spent over $700 a year – more than 5% of their income – on lottery tickets. Compare that to the richest 1%, where the average spend on lottery tickets each year comes in at a modest $150.
Make less, spend more
Overall, the magazine estimates a 10% decrease in household income is equal to a 4% increase in lottery spending. They also found older, non-white Americans play at a higher rate.
And just to be clear, this is not chump change; according to the North American Association of State and Provincial Lotteries (NASPL), Americans spent $113.3 billion on lottery tickets in 2023. That number comes to over $437 per American adult.
For some mind-numbing comparison, note this: Americans spend more on the lottery than it cost to build the International Space Station.
Additionally, the ROI on lottery games is not exactly +EV. According to the NASPL, $30.4 billion of the money spent goes to the “beneficiaries” of the lottery, meaning for every dollar spent, only a little more than 73 cents goes back to the player.
For those scoring at home, the current Mega Millions jackpot sits at $120 million, Powerball at a “paltry” $46 million.
Photo: Getty Images
