Lottery spending is growing. Residents shell out the most in these states.

The Powerball jackpot has swelled to an estimated $1.8 billion, as Americans continue to take a shot at bringing home the top prize. But some states have a larger share of participants than others.

Massachusetts leads the way in lottery spending, according to a LendingTree analysis of government data. Residents there shell out an average of $915 a year on tickets they hope will earn them big bucks. Rhode Island residents come in second, spending $573 annually.

North Dakotans are perhaps the most realistic about their chances of winning. They spent just $50 on lottery tickets in 2023, the lowest of any other state.

But that may be because lottery tickets are harder to access there, according to LendingTree’s chief consumer finance analyst Matt Schulz, who noted that people in urban areas have more opportunities to purchase lottery tickets than those in rural areas. 

“It’s easier to go to a convenience store and pick up a lotto ticket in Massachusetts or New York than it is in North Dakota,” he told CBS MoneyWatch. “Some of it might just be about opportunity.”

Source of revenue

Lottery spending can generate a substantial amount of revenue in participating states. On average it accounts for about 1% of a state’s general revenue. That figure rises to 3% in Rhode Island, South Dakota and West Virginia, according to the LendingTree’s analysis. In Florida, lottery sales make up 2% of the state’s revenue. 

“That shows how significant these programs are for these states,” Schulz said. “Imagine if something were to happen and suddenly 3% of a state’s revenue just disappeared.”

While the odds of winning are next-to-none, a prize-winning ticket can be life-changing. In 2023, Americans spent an average of $320 on lottery tickets, up about 4% from 2022, according to LendingTree. 

Saturday’s jackpot — now worth about $826.4 million if taken in a lump-sum cash payout — is the second-largest prize in U.S. lottery history, according to Powerball. The record jackpot of $2.04 billion was won on Nov. 7, 2022.

Saturday’s drawing takes place at 11 p.m. EDT. 

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Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.

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