Report: Lottery Accounted For 23% Of US Gambling Spend In 2023

The United States set a record for gambling spend in 2023, with lottery making up nearly a quarter of the total.

According to Eilers & Krejcik Gaming (EKG), US consumers spent $166 billion on gambling activities last year. Of that spending, lottery accounted for 23% of the total. That includes states with online lotteries.

In this report, gambling spend represents gross gaming revenue (GGR). That is the total wagers made with payouts subtracted from the overall figure.

Lottery responsible for over $38 billion in 2023 spend

Overall, total US gambling spend was at an all-time high with $166 billion. Of that total, 22% came from retail lottery, while 1% was credited to iLottery.

Lottery accounted for the second-most gross gaming revenue (GGR) in the US last year.

Casinos – both retail and online – were the leader at 62%. However, lottery accounted for 23%, which was well ahead of third place. Sports betting was responsible for 7% of the revenue.

Chart showing US gross gambling revenue in 2023, with lottery accounting for 23% of it
Created by PlayiLottery

When breaking down the percentage of gambling spend in 2023, here’s where some of the key demographics landed in total, according to the EKG report:

  • Commercial casino: 30% (approximately $49.8 billion)
  • Tribal casino: 26% ($43.2 billion)
  • Retail lottery: 22% ($36.5 billion)
  • Online sports betting: 6% ($10 billion)
  • Online casino/poker: 4% ($6.6 billion)
  • iLottery: 1% ($1.7 billion)

iLottery growing at nearly 50% rate

EKG examined the compound annual growth rate (CAGR) of all the gambling categories that contributed to the 2023 spend total.

Over the outlook of the last five years, all forms of online gambling are setting the highest CAGR.

Sports betting is leading the way with 139% growth over the last five years. Online casinos and online poker combined for 85% growth, while iLottery is next at 48%.

By comparison, retail lottery had a CAGR of just 5% over the last five years.

The growth of retail lottery remains promising, considering it’s already legal in 45 states and Washington D.C.

Over recent months, we’ve seen both Alabama and Hawaii have legal discussions about adding to that retail lottery total.

Online lottery has a much bigger growth window. Currently, only 10 states and Washington D.C. offer legalized iLottery games on their respective state lottery websites and mobile applications.

It isn’t taking new states long to see eye-opening revenue from iLottery. North Carolina has already amassed over $50 million in revenue from its Digital Instant games through four months of operation.

States like Ohio, New Hampshire, and Maryland have also all had online lottery legislation talks in the early stages of 2024.

 

Photo by Shutterstock.com

About the Author

Drew Ellis

Drew Ellis

Lead Writer
A member of Catena Media since 2020, Drew Ellis is the Lead Writer at PlayiLottery, where he handles coverage of the online and retail lottery industry in the US. He previously spearheaded news content at PlayMichigan, where he covered one of the most prominent online lottery industries in the US — among the many other aspects of Michigan's sprawling iGaming market. You can email him at [email protected].
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