Pennsylvania Lottery: Historical Data and Interstate Comparisons

January 30, 2014 | Economics and Other

For fiscal year (FY) 2012-13, the Pennsylvania Lottery (hereafter referred to as the Lottery) generated $1.1 billion of net revenues or profits that provided tax relief and services for elderly residents. Demographic projections suggest that the demand for programs funded by lottery profits will likely outpace general economic growth over the next decade. An important issue for policymakers is whether lottery revenues will be sufficient to support future demands. If they are not, then policymakers may need to reduce services or seek alternative sources of funding.

This report provides a brief historical analysis of lottery sales, profits and expenditures from the Lottery Fund. It compares state lotteries using common industry metrics, such as per capita sales. The interstate comparison allows policymakers to gauge the relative performance of the Lottery. The metrics are also useful to assess the rate of lottery penetration in the state and the potential for future expansion. The final section discusses short and long-term challenges the Lottery will confront as it attempts to expand in a highly competitive marketplace. The report concludes with a brief analysis of possible lottery expansion through Keno.

Full Report