Mega Millions: What It Means for The Gambling Industry
It’s been almost a week now since Mega Millions fever swept the United States. According to Mega Millions officials, three winning tickets were sold, but so far no one has, publicly, produced the winning tickets to claim their share of the $640 million jackpot.
Now that the excitement has cooled down, it’s worth taking a moment to examine what Lottery Fever might mean for the gaming world as a whole.
Where the Money Goes
Mega Millions is, of course, a thinly veiled effort by state governments to raise badly needed revenue to fund everything from parks to educational programs. Given that the participating governments divvy up 25 percent of lottery revenues, last week’s drawing was a pretty sweet payday.
Of the remaining 75 percent of lottery funds, 60 percent goes to the winners. Another 15 percent of the money raised by Mega Millions goes to the retailers selling the tickets.
Pathway to Gambling
Many in the gaming affiliate business saw the crowds lining up to buy lottery tickets last week and wondered if it signaled an increased tolerance towards gambling in the US? Affiliates shouldn’t read too much into lottery fever as it relates to the bigger gaming industry picture.
Most American don’t look at lotteries as gambling the way they would look at roulette or poker. But with the introduction of online lottery ticket sales in Illinois recently, it is market sector worth keeping an eye on.
Revenue Windfall from Gaming
That said, more and more cash starved states are looking to gambling revenues to help them close gaping budget deficits. New Jersey is even threatening to open online sportsbetting to the entire country.
Given the potential revenues in play, it’s not surprising to see states like Iowa looking closely at legalized gaming. According to report sponsored by the Poker Players Alliance, legalized online poker could raise as much as $3 billion in revenues for states annually.
Lotto for Affiliates
Gaming affiliates who are interested in cashing in on lotto fever can grab a piece of the action with some of these CAP approved lottery affiliate programs. They’re not likely hit that $640 million mark, but their payouts aren’t too shabby.