EILERS: U.S. Lottery Tracker – 2Q23

In 2Q23, total U.S. lottery sales increased +4% y/y to $26.2 billion across the 46 U.S. jurisdictions we track in our report. On a sequential basis, results declined -6% q/q. This was the fourth consecutive period of annual lottery wager growth. Instant Tickets sales increased +4% y/y to $18.2 billion, which was the 4th 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. Draw game wagers increased +3% y/y but declined -15% q/q to $7.8 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 weaker jackpot activity relative to a tough comparable period in which the jackpot size grew to $1.03 billion.