Massachusetts must put more plunder in its lottery
The United States Census Bureau has released the 2007 Survey of State Government Finances which includes data on revenue generated by state lotteries.
While Massachusetts is an acknowledged – even envied – world-leader in scratch tickets it’s not very good at actually fleecing its citizens. After prizes and administration has been accounted for a mere 21% or so of lottery revenue end up in state coffers, slightly less than the national average. By comparison, California has a 38% rip (Mass Lottery claims it bagged and distributed $1,026,910,242 in fiscal 2008 and $1,011,032,167 in 2007, or about 23% of lottery revenue).
If Massachusetts skimmed 38% it would add another half-billion dollars. Imagine how much of the state budget deficit could be covered with that chunk of dough (about one-third, to be precise). One might argue that if the Commonwealth reduced the share of prize money people would spend less on the lottery, thus reducing income. I say the opposite would happen: In order to win a buck, players would have to spend more than they do now. You might say that makes no sense, but I say, sure, but how does playing the lottery make any financial sense to begin with?
Reminder: Gamble more and give less!
