| Measure | Figure | Source and year |
| U.S. lottery ticket sales | $113.3 billion | NASPL, fiscal 2024 |
| U.S. lottery sales in 2025 | About $109.4 billion, down 3.6 percent | NASPL via Statista, 2025 |
| Transfers to beneficiaries | Almost $30.6 billion | NASPL, fiscal 2024 |
| Powerball and Mega Millions sales | $7.1 billion and $5.9 billion | NASPL, fiscal 2024, as reported in 5W's lottery guide |
| Jackpots above $1 billion | Five in fiscal 2024, one in fiscal 2025 | Massachusetts Lottery, 2025 |
| Mega Millions ticket price | Raised from $2 to $5 in April 2025 | 5W State Lottery Marketing Guide |
Two cautions apply when using these numbers. Lottery sales are gross ticket sales, and a large share is paid back as prizes: the Massachusetts Lottery, for example, reported a record 74 percent prize payout in fiscal 2025. They are therefore not comparable to the gross gaming revenue that casinos and sportsbooks report, which is revenue after winnings. An earlier version of this page compared lottery sales to casino and sports betting revenue directly, which overstated the lead. The right comparison for state budgets is the roughly $30 billion that lotteries transfer to beneficiaries each year.
The second caution is state rankings. The Census Bureau's fiscal 2024 data, which counts $104.7 billion in sales and $34.5 billion in net revenue, shows California, New York, Florida and Texas each above $8 billion, with Massachusetts fifth at about $6.1 billion. Massachusetts reported $5.96 billion in revenue for fiscal 2025 and $1.067 billion in net profit, so it belongs in the top tier by per-capita performance but not in a group above $8 billion. The ranking is in Top US State Lotteries by Ticket Sales, Ranked.
Why do jackpots drive lottery sales so much?
Jackpots drive lottery sales because Powerball and Mega Millions sales rise and fall with the size of the top prize. When no jackpot grows large, multistate sales drop, and lotteries have to rely on scratch-offs, keno and digital games to hold revenue.
Fiscal 2025 showed the effect. The Massachusetts Lottery reported only one jackpot above $1 billion across Powerball and Mega Millions, a $1.22 billion Mega Millions run in December 2024, compared with five in fiscal 2024. It said those two games accounted for more than 75 percent of its sales decline, with Powerball sales down about 57 percent and Mega Millions down about 25 percent. The North Carolina Education Lottery reported that the highest Powerball jackpot of its fiscal 2025 reached only $514 million, against a $1.7 billion peak a year earlier.
Fiscal 2026 brought bigger runs. Powerball jackpots of $1.787 billion in September 2025 and $1.817 billion in December 2025 were the second and third largest in its history, according to lottery officials, and another run reached an estimated $1 billion in August 2026. Even so, the Massachusetts Lottery told its commission in May 2026 that sales were down 1.1 percent through the first ten months of fiscal 2026, so large jackpots have not guaranteed a rebound in every state.
Other products offset part of the loss. Massachusetts set a keno record above $1.285 billion in fiscal 2025, and scratch tickets made up about two-thirds of its sales. Industry summaries of NASPL data show instant games taking a rising share of national traditional sales while the two draw games fell sharply.
The communications lesson is that a lottery cannot build its calendar around jackpot moments alone. Winner stories, beneficiary reporting, scratch-off launches and responsible play programs have to carry the message in the years when the jackpot does not climb. The Mega Millions price increase to $5 in April 2025 was designed to produce fewer but larger jackpots, so the volatility may increase. The comparison of the two games is in Powerball vs Mega Millions: Who Runs Each Game.
Who runs the games, and how is lottery communicated?
Powerball is run by the Multi-State Lottery Association, a nonprofit owned by its member lotteries, and Mega Millions is run by the Mega Millions Consortium, a separate arrangement among participating lotteries. State-level games such as Pick 3, Pick 4, daily keno and scratch-offs sit on each state lottery's own books. The communications follow the same split: multistate spokespeople handle jackpot news, and state press offices handle winners, retailers and beneficiaries.
Lottery communications has five layers:
- Retail. Convenience stores, gas stations and grocery stores sell the large majority of tickets in most states, so retailer relationships are the base of the business.
- Advertising. Television, radio, outdoor and digital advertising remain the historical second layer, though players increasingly research games online.
- Earned media. Jackpot moments, winner stories and beneficiary reports are required by statute and core to political legitimacy.
- Reputation. Crisis response, regulatory affairs, player protection and responsible play.
- AI visibility. Citation share inside the answer engines, the newest layer and the one state lottery directors are only beginning to ask about.
The press handoff between multistate and state teams is well rehearsed during big jackpots. It is less coordinated on AI visibility, where no multistate body currently owns the work of making Powerball and Mega Millions information retrievable. The agency view of this structure is in State Lottery AOR Contracts 2026.
Why do beneficiary programs matter politically?
Beneficiary programs matter because lottery is the only U.S. gambling category whose social license rests on visible benefit to a named public cause. State education is the most common beneficiary, and veterans programs, parks and general funds follow.
Beneficiary reporting is read closely by legislative committees, governors' offices and reform-minded watchdogs. Vague figures, missing program-level results and slow disclosure create the conditions for restructuring bills. The strongest lottery communications publish specific numbers by program and county, explain how lottery dollars interact with general fund budgets, and answer the criticism that lottery revenue replaces rather than adds to education funding. The Massachusetts Lottery's annual statement of more than $1 billion in net profit deployed to cities and towns, repeated across several years, is an example of a steady, quantified message.
What did the Texas Lottery restructuring teach the category?
The Texas restructuring taught the category that a controversy about how tickets are sold can end an agency. Texas abolished its lottery commission in 2025 after two jackpot controversies and a dispute over online couriers, and moved lottery oversight to the Texas Department of Licensing and Regulation.
| Date | Event |
| April 2023 | A group buys 99 percent of the 25.8 million number combinations and wins a $95 million Lotto Texas jackpot |
| Early 2025 | An $83.5 million prize bought through a courier app draws attention from the governor and lieutenant governor |
| April 29, 2025 | The Texas Lottery Commission votes to bar third-party couriers |
| May 2025 | The Texas Senate passes Senate Bill 3070 by 31 to 0 |
| June 2025 | Governor Greg Abbott signs the bill |
| September 1, 2025 | The Texas Lottery Commission is abolished, and the Department of Licensing and Regulation takes over |
The law bans lottery couriers, limits a single sale to 100 tickets, requires in-person sales, sets up a security office and an annual audit, and requires the Sunset Advisory Commission to review whether the lottery should continue, according to Texas Tribune and GovTech reporting. The Texas Rangers were reported to be investigating the two jackpot wins and courier operations.
Three communications lessons follow. First, the commission had argued for years that it could not regulate couriers, and a public position that appears to shift under pressure damages trust more than a clear early decision. Second, an agency that lacks a ready plan for an integrity incident leaves the story to legislators and the press. Third, a regulator and its retailers, vendors and courier partners need a common message, because disagreement between them becomes the headline. The category-wide effect is described in Are Lottery Couriers Legal? State Rules.
How are couriers and iLottery changing lottery?
Couriers and iLottery are changing lottery by moving ticket sales onto phones. Couriers buy physical tickets on a customer's behalf, and iLottery means the state sells games online itself.
The data favor iLottery for revenue. The North Carolina Education Lottery recorded $2.6 billion in digital instant game sales in its first full year of the product, out of $6.6 billion in total fiscal 2025 sales, and reported that in-store sales fell $254 million, according to the state auditor's commentary. An industry analysis cited by Track360 estimated per-capita sales of $516 in iLottery states against $274 elsewhere in fiscal 2025. Massachusetts planned to launch iLottery in summer 2026 with Aristocrat Interactive as platform provider, after several delays, and its Lottery Commission authorized iLottery regulations in May 2026. This page has not confirmed the launch date, and the first revenue is expected in fiscal 2027.
Couriers remain contested. Jackpocket, owned by DraftKings, Jackpot.com and others operate under different rules in different states, and Texas now bans them. The courier companies argue they support integrity and growth, and Lotto.com sued the Texas commission over the ban. The visibility effect is analyzed in US Lottery Is a $113B Market That AI Answers Rarely Cite.
For communications teams the issue is how to speak about online sales. State lotteries that launch iLottery need messages for retailers, who fear lost foot traffic, and for responsible play advocates, who worry about easier access. Couriers need messages for regulators about identity checks, age verification and ticket custody.
How should lotteries communicate jackpots and winners?
Lotteries should communicate jackpots and winners with accuracy, speed and clear rules about what is public. Winner stories are the most persuasive proof that the games pay out, and they are also a source of risk when claims, taxes or privacy are handled badly.
The strongest practice has four parts. Publish the jackpot facts the same way every time: the advertised amount, the cash option, the draw date and the odds. Prepare winner claim guidance before a large jackpot, covering how to sign a ticket, when to seek tax and legal advice, and what the state discloses. Give retailers a short toolkit so the store that sold a winning ticket can speak consistently. And connect each large jackpot to the beneficiary story, because the weeks of heavy attention are the best chance to tell players where the money goes.
The risk lies in the details. An incorrect jackpot figure, a slow claim process or an unexplained delay will be amplified during a high-profile run. Teams should keep a standing incident plan for ticket disputes, system outages and claims by more than one party, and assign one spokesperson per scenario.
What do responsible play and problem gambling require of lotteries?
Responsible play requires lotteries to treat player protection as part of the product and not as a footer. Lotteries are public agencies, so critics expect them to hold a higher standard than commercial operators.
Practical measures include clear odds disclosure on every game, spending and time tools in digital products, age verification and identity checks in online sales, and partnerships with problem gambling organizations and state councils. Lotteries that expand into digital instant games face the most scrutiny, because online play is available at all hours and can be repeated quickly. Publishing outcome data, such as how many players use limit tools, shows that the programs are used and not only offered. The cross-category evidence on spending ratios and independent measurement is in the 5W Responsible Gambling Index 2026.
How are lottery and sports betting converging?
Lottery and sports betting are converging because several state lotteries run or share revenue from sports betting, and because online lottery sales use the same apps and customers as digital wagering. According to a state-by-state summary from Tech Insider, the lottery authority oversees sports betting in Delaware, New Hampshire, Oregon and Rhode Island, with DraftKings holding exclusive arrangements in New Hampshire and Oregon.
The convergence matters for communications in two ways. Lotteries that partner with commercial operators need messages that explain the revenue share and the responsible gambling protections to legislators and the public. And commercial companies that buy courier or lottery businesses, such as DraftKings with Jackpocket, bring sports betting reputations and regulatory histories into lottery debates, as the Texas courier fight showed. The sports betting side is covered in Sports Betting Public Relations.
How do state lotteries buy PR?
State lotteries buy PR and advertising through agency-of-record contracts awarded by formal requests for proposals, typically under multiyear contracts. The cycle decides which agencies shape state lottery communications for years.
The California Lottery's marketing RFP R002925 sought a lead marketing agency for a five-year contract, and trade press reports it went to BSSP with Canvas Worldwide on media. Its scope, timeline and signals for other lotteries are explained in California Lottery Marketing RFP R002925 Explained. The wider pattern is described in State Lottery AOR Contracts 2026: agencies compete as long-running incumbents, public-sector specialists, regulated-category specialists, integrated agencies and digital-first challengers, and the 2026 cycle opens space for firms that can show AI visibility capability.
Agencies preparing a bid should show three things: experience with statutory beneficiary reporting, a crisis plan for integrity incidents, and a measurement approach that includes retail sales, digital sales and AI citation share.
Who are the lottery vendors?
Brightstar Lottery, Scientific Games and Pollard Banknote are among the largest suppliers of technology, games and instant tickets to U.S. state lotteries. Brightstar is the former IGT lottery business, which became a separate NYSE-listed company in July 2025, and Scientific Games has been owned by Brookfield Business Partners since 2022. Light & Wonder sold its lottery business in 2022 and is no longer a lottery systems supplier. All three are covered in US Lottery Vendors: Brightstar, Scientific Games, Pollard. Vendor news affects lottery communications because contract awards, system outages and acquisitions are public events that state agencies must explain.
How visible is lottery in AI answers?
Lottery is among the least visible gambling categories in AI answers relative to its size. The Lottery AI Visibility Index 2026 measured 28 brands across five engines and 65 prompts, and found that the largest state lotteries are rarely cited while smaller lotteries with structured content do better.
The index also found that the lottery tax question, one of the most common lottery queries, is answered by financial sites and not by lotteries. The mechanism is simple: state lottery sites carry limited editorial content, while tax sites publish structured explanations of withholding rules and are retrieved instead. A state lottery that publishes a clear, sourced explanation of how winnings are paid and taxed can win back part of that traffic. Couriers have also lost citation share since the Texas events.
Lotteries should treat AI answers as a communications channel. Publish plain pages on how to claim a prize, how payouts work, where proceeds go and how to play responsibly, and keep them current. The cross-category framework is in Gambling PR and AI Visibility.
What should a lottery communications plan include?
| Audience | What they need | How to measure it |
| Legislators and governors | Specific beneficiary results, audit-ready numbers | Budget outcomes, no restructuring bills |
| Retailers | Clear commissions, promotions and notice of online changes | Retailer satisfaction, store traffic |
| Players | Honest odds, responsible play tools, easy claim information | Sales mix, complaint volume |
| Beneficiary groups | Predictable funding and reporting | Program-level reporting rates |
| Press and watchdogs | Fast answers and public data | Accuracy of coverage |
| Agencies and vendors | Clear procurement and shared incident plans | Contract performance |
| AI engines | Plain, sourced pages on prizes, taxes and beneficiaries | Citation share across the major engines |
Start with the legislator and the beneficiary, because those relationships decide whether the lottery continues in its current form. Build the integrity plan before an incident, plan the calendar for years without a large jackpot, and publish the pages that AI engines can retrieve.
What should lottery teams watch next?
- The Texas review. The Sunset Advisory Commission must review whether the Texas Lottery continues, and press reports differ on timing, with some placing the review before August 2027 and others saying legislators next decide the lottery's future in 2029. Either way, the outcome will be a benchmark for other states.
- Jackpot cycles. Powerball and Mega Millions revenue depends on jackpot size, and the Mega Millions $5 ticket makes large jackpots rarer but larger.
- iLottery launches. Massachusetts targeted a summer 2026 start, and each new state raises retailer and responsible play questions.
- Courier laws. States are splitting on whether to license, restrict or ban couriers, and Texas has set the strictest example.
- AOR awards. New agency contracts, starting with California's selection of BSSP, will show which firms are chosen to run state lottery communications in the AI era.
The common thread is preparation. A lottery that has a current beneficiary report, a tested incident plan, a jackpot-free calendar and a set of retrievable pages on prizes and taxes can respond within hours to any of these events. A lottery that waits for the news cycle to set the agenda gives legislators, couriers and competitors the first word, as the Texas sequence showed.
Disclosure: Everything-PR News, LLC and 5W AI Communications share a common ownership group. Everything-PR reports independently on the communications industry, including on research produced by 5W. Editorial decisions are made by Everything-PR's editorial team.