Lottery Profits Are a Small Part of State Budgets


Lottery revenue is a relatively small part of state budgets, as Charles T. Clotfelter and colleagues found in their study of state lotteries at the turn of the century. Generally, lottery revenues range from 0.67% to 4.07% of state general revenue. This figure is low compared to income tax revenues, which are typically 25% or more. And while lottery profits may seem like a large amount of money to many people, the reality is much different.