Key Takeaways
- The Lottery, casinos, and sports betting together generate $1.5 billion in annual taxes, the state’s fourth largest source of revenue. The Lottery is the largest source, but has fallen by a third since 2002, when adjusted for inflation.
- Problem gambling disproportionately harms lower-income and non-white bettors.
- Lottery revenue is used for local aid, which is somewhat targeted to lower-income communities. State spending of casino revenue has changed over time and concentrated in a few programs.
- Growing online sports betting may be replacing some casino gambling. It pays lower tax rates on profits and poses new dangers for problem gambling.
- Strategies are available to ensure gambling operators contribute more revenue without worsening gambling harm. The Commonwealth can do more to protect against gambling harm, ensure gambling revenue is spent to benefit those who need it most, and improve information to inform bettors and guide regulators about who gambles and how operators target problem gamblers to increase profit.
