Lotteries and prize drawings are big businesses throughout the world. They entice significant amounts of spending from individuals who dream of scooping up a huge and potentially life-changing cash prize. Their proceeds also go to public sectors, including education, park services, and funds for veterans and seniors.

In the United States, the Mega Millions and Powerball lotteries have become a key feature of monthly consumer spending. According to the U.S. Census Bureau, income from state-administered lottery funds generated $76.4 billion in sales in 2018 (the latest year on file).1 The profits generated by national lotteries are, therefore, understandably huge. With the stakes so high and the chances of winning so low, is participating in the lottery a waste of cash or simply a high-risk opportunity that is worth a weekly gamble?

Lotteries in the U.S.

While your chances of winning the lottery anywhere are decidedly slim, the sheer size of the U.S. population and popularity of the game means that American participants must climb an even steeper mountain toward any potential windfall.

Even though this equates to several tickets being purchased per U.S. resident, the odds of each participant winning the Mega Millions jackpot is one in 302.6 million, while the odds of winning the Powerball jackpot is one in 292.2 million.32 This means that statistically there is a greater likelihood of being struck by lightning or becoming a billionaire than there is of claiming the Mega Millions jackpot. Despite the low probability, Americans still spent more than $76 billion chasing their fanciful dreams of wealth and fortune. This is reflective of a growing trend, with lottery sales continuing to soar.

By state, New Yorkers have been the lead in lottery spending. In 2018, New York accounted for $10.3 billion in lottery sales. California, Florida, Texas, and Massachusetts rounded out the top five for spending. Wyoming and North Dakota were the states where people spent the least amount.