Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

The Real Cost of the Lottery

By Lewis Braham - 2012-11-28T21:32:58Z

Photograph by Richard Drew/AP Photo

Company Symbol % Change
3 of 16


Prizes are taxed as income, with a maximum federal rate of 35 percent and state rate of 11 percent. States keep about a third of ticket sales, which came to $17.7 billion in 2010. Although buying tickets certainly isn't mandatory, economists say the lottery is essentially a regressive tax on the poor and uneducated. According to a 2005 University of Texas study, households making $30,000 to $40,000 a year spent $40 a month on tickets, compared with $20 by those making more than $100,000. High school dropouts spent $50 a month, while those with graduate school degrees spent $13.