Lottery Retailing – Do Lottery Retailers Make a Profit?

Lottery Retailing – Do Lottery Retailers Make a Profit?


The United States currently has nearly 186,000 lottery retailers, according to the NASPL Web site. These retailers are most prevalent in California, Texas, and New York, with three-fourths offering online services. Of those retail locations, half are convenience stores. Others include nonprofit organizations, service stations, restaurants, bars, and newsstands. Some retailers do not sell lottery tickets at all. If you’re wondering if lottery retailers make a profit, consider the following:

Economic impact

While the overall amount of lottery wagering is not large, the industry does produce significant profits for governments. In 1996, U.S. lotteries generated $16.2 billion, which represented 38% of sales. In Las Vegas, there is no shortage of interest in games of chance, so lotteries have created new and exciting games to capture buyer attention. These games also increase anticipation and involvement in buying tickets. But the economic impact of lottery is not always clear.


Recent research has investigated the demographics of lottery players. The majority of the literature suggests that lottery playing is more common among lower-income and minority groups. In particular, black and Latino respondents were found to spend more on lottery tickets than other races. Although this relationship may not hold for other lottery games, the data is indicative of a significant trend. Lottery sales increased among these groups during the 2001-2010 time period, and the lottery has a higher proportion of African-American participants than white respondents.


Despite what some people believe, the legality of lottery games is a topic of debate. While the lottery itself contains three important aspects – chance, prize, and consideration – there is also a problem with the sweepstakes and contests versions of this game. The latter usually involve some type of consideration, such as entry fees. In order to be legal, the lottery should require participants to submit some sort of consideration in exchange for the chance to win.


Digital marketing for lottery retailers has a wide range of advantages and can be a great tool for marketing. Digital marketing allows retailers to create a strong online presence and attract more potential customers. Although tv and out-of-home advertising remain popular, digital lottery marketing is a natural progression. In this article, we will explore the advantages of digital lottery marketing. This method will be discussed in more detail. Then, we’ll briefly touch on other methods of marketing for lottery retailers.

Comments are closed.