Have Casinos Hurt Lottery Sales?

According to a new report from the Legislative Budget and Finance Committee, the presence of casinos does not have a negative impact on state lottery revenues.  At the same time, lottery growth has stagnated, and counties with casinos have seen a greater decline in lottery sales relative to other counties.

The report concluded that while the growth in lottery sales has diminished in recent years, most of this decrease can be attributed to other factors such as a slowdown in new lottery retailers and a dearth of new games being introduced to the lottery system.

Lottery sales have slowed most prominently in counties hosting casinos and those adjacent to them. It may be that other factors such as geographic location, population density, and a stagnant economy are to blame.

The state spends about $37 million annually for lottery advertising.