In the beginning of April millions of Americans Watched the Powerball. The Jackpot, Which is the main winner, had a shot for $1bn. But the chance of winning is very low, it is only one out of 292 million. This multi-state lottery is very popular in the United States. In 2023, Americans shelled out more than $100bn.
State run lotteries are popular for various reasons, first of all it is quite cheap and anyone can afford it. A certain share of proceeds are directed to public education or programs for elderly. The gifts are more alluring, while casinos keep less than 10 percent of wagered money on the slot machines, State lotteries keep 30 percent on average.Â
The Economist magazine traced an interesting behavior among American Households. The poor families spend much more than the rich both in absolute and relative terms. In the poorest 1 percent of Zip codes, adults on average spend $ 600 dollars per year that is almost 5 percent of their income. On the other hand 1 percent of rich zip codes spend only $150. That is only 25 percent of the amount paid by top poor families and 0.15 percent of their annual income.Â
The corona paychecks have also made it worse. Compared to 2021, poor American adults spend $100 dollars more on the state lottery but top reach Americans spend on 10 bucks more.
Source: Economist
