In the words of one lottery director: "Lotteries are different from any other gaming product. Lottery players risk a small amount of money against very long odds to win a large prize, with the net proceeds going to the public good." 1
The lottery industry stands out in the gambling industry by virtue of several unique features. It is the most widespread form of gambling in the U.S.: currently, lotteries operate in 37 states and the District of Columbia. It is the only form of commercial gambling which a majority of adults report having played. It is also the only form of gambling in the U.S. that is a virtual government monopoly. State lotteries have the worst odds of any common form of gambling (a chance of approximately 1 in 12-14 million for most existing lotto games), but they also promise the greatest potential payoff to the winner in absolute terms, with prizes regularly amounting to tens of millions of dollars.
Lotteries rank first among the various forms of gambling in terms of gross revenues: total lottery sales in 1996 totaled $42.9 billion. 1982 gross revenues were $4 billion, representing an increase of 950% over the preceding 15 years, 1982-1996.2
Lotteries have the highest profit rates in gambling in the U.S.: in 1996, net revenues (sales minus payouts, but not including costs) totaled $16.2 billion, or almost 38% of sales. They are also the largest source government revenue from gambling, in 1996 netting $13.8 billion, or 32% of money wagered, for governments at all levels.