In FY2019, Maryland’s lottery revenue totaled $1.7 billion, up 2.2 percent from the previous year. This was due in large part to an increase in instant ticket sales, which increased by 14 percent. This growth is expected to continue into the double digits, and Gov. Larry Hogan welcomed the numbers. Although lottery revenue has been declining in the past few years, it is on a steady rise. Let’s take a look at how it got there and how it is expected to keep increasing.
Gambling revenues are distributed by state governments. The revenue from state lotteries, casinos, and pari-mutuel wagering is split among these entities. Lotteries, casinos, and racinos account for nearly two-thirds of gambling revenues in most states, while video games, pari-mutuel wagering, and horse races are the remaining sources of revenue. According to the American Gaming Association, state governments in the U.S. collected $27 billion in revenue from gambling in fiscal year 2015, with lottery revenues making up the largest share.
As for the impact of expansion of casino gaming on local economies, the state lottery commission will release its report at 4 p.m. on Tuesday, May 1. During this time, executive officers of the Rhode Island Lottery Commission will discuss how the Ocean State’s casinos compare to other states. In March alone, Massachusetts’ gaming revenue was $102 million. Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor generated that amount of revenue. Overall, U.S. casinos reported $5.31 billion in March.
State legislatures have continued to explore ways to use gaming revenue to fund public services and reduce taxes. In 2013 Wyoming became the latest state to authorize a state lottery. In 2016 and 2017, New York approved new casinos. Many have also proposed additional tax breaks for the gaming industry. Advocates of state-sponsored gambling generally see it as a voluntary tax paid by non-residents. Legislators may find this incentive attractive, especially if they do not want to raise taxes.
In fiscal year 2019, Illinois’ lottery revenues surpassed $1.36 billion, putting the lottery’s sales at their highest level since the lottery began in 1975. Since then, the Illinois Lottery has been steadily increasing its revenues. Its revenue from instant games now represents nearly two-thirds of the state’s overall revenue. And that’s only one example. The numbers don’t include the casino revenue from other forms of gaming.
Maryland’s lottery and casinos contributed more than $1 billion to state programs and the education trust fund. In FY2021, the Maryland Lottery, with its casinos, generated $11.8 billion in total gaming revenue, topping the previous record of $1.311 billion for FY2019. However, the Maryland casinos did not operate at full capacity during the first year. As a result, the Maryland lottery’s contribution to the education trust fund was only 60 million higher than the previous year.
The state’s lottery and racino revenues have been growing steadily since the early 1990s, when many states legalized commercial casino gambling. As such, most states are now collecting revenue from one or more forms of gambling, including lottery and racinos. In addition, Native American casinos are legal in 29 states. So, what’s the bottom line? If you’re looking for a new way to raise revenue, consider the following: