This report revealed that household lottery spending is financed primarily by a reduction in non-gambling expenditures, not by a reduction in expenditures on other forms of gambling. The introduction of a state lottery is associated with an average decline of $46 per month, or 2.4 percent, in household nongambling expenditures. Low-income households reduce non-gambling household expenditures by 2.5 percent on average, 3.1 percent when the state lottery includes instant games. This report was complied by Melissa Schettini Kearney at the Wellesley College and National Bureau of Economic Research.
WATCH: “Who Profits From Causing Gamblers to Die by Suicide? Examining Corporate and State Accountability for the Institution of Predatory Gambling”
February 24, 2026
Despite a mountain of evidence, states continue to partner with powerful gambling corporations to promote ever more extreme forms of