Over at Five-Thirty-Eight Mona Chalabi has a blog entry on how much States receive in Lottery money (year 2012 is the latest data availble). She also shows, on a per capita basis, how much of the money goes to prizes, administrative costs, and into the State budgets as general revenue.
I went to the data source and created the simple table below to show, in percentage terms, how much each State pays out in prizes and how much goes into the State budget to be spent on...You take a guess.
How does your State do in terms of using the lottery as a revenue generating acitivity?
One observation: If the Lottery is played, in general, by low(er) income people (I think that is what the research shows) then in States where there are high pay-outs in prizes seem to be just re-distributing money within that subset. The Lottery is promoted as a way to raise money to advance some social policy---usually that is education which presumably benefits everyone rich or poor.
I have not played the Lottery in 20 years. I think I am richer, literally and figuratively, for it.
(Note: Numbers do not round up to 100%. The balance percentage is from "Administrative Costs" to run the Lottery (Salaries, advertising, etc).