EILERS: U.S. Lottery Tracker – 1Q23

In 1Q23, total U.S. lottery sales increased +11% y/y to $27.9 billion across the 46 U.S. jurisdictions we track in our report. On a sequential basis, results declined -1% q/q. This was the third consecutive period of annual lottery wager growth. Instant Tickets sales increased +6% y/y to $18.5 billion, which was the 2nd strongest period of Instant Sales. We attribute this to a combination of strong discretionary income growth and incremental growth from new distribution channels such as iLottery. It’s worth highlighting that the seasonal increase (q/q) was in line with the 11-yr, pre-COVID average growth of ~6%, which is evidence of returned normalized trends. Draw game wagers increased +21% y/y but declined -11% q/q to $9.2 billion. Annual growth was driven by stronger multi-state jackpot activity along with some of the same factors positively impacting Instant Ticket sales. On a sequential basis, we attribute the decline to a tough comparable period which featured a historic +$2.0 billion jackpot.