Ranked: The 10 Best States to Play the Lottery…and Why You Still Shouldn’t

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If you play the lottery, you might think that your chances of winning money are about the same no matter where you are. It sounds reasonable, but it’s not the case.

Your odds of winning money, and how much, depend on the state where you play. In some states, the average prizes paid per dollar spent are two- and even three-times higher than in others. Below, you’ll find the best states to play the lottery, based on lottery statistics gathered by The Motley Fool Ascent. Then, I’ll cover a more reliable way to get rich.

The 10 best states to play the lottery

Here are the best states to play the lottery and each state’s prizes paid per $1 of lottery spending:

1. Ohio: $0.76
2. Missouri: $0.74
3. Arizona: $0.74
4. Maine: $0.74
5. Arkansas: $0.74
6. Idaho: $0.74
7. Pennsylvania: $0.73
8. Florida: $0.72
9. Vermont: $0.72
10. Kentucky: $0.71

This lottery data is from 2021, the most recently available dataset.

So, for every $1 of lottery spending, Ohio pays out $0.76 in prizes. It’s not an evenly distributed $0.76 — more like $76 million for one player, and $0 for 1 million other players.

Still, players are more likely to come out ahead in those states. Some states pay far less, with South Dakota being the stingiest. It pays only $0.21 per $1 of lottery spending.

The most likely outcome in any state is losing money

The appeal of playing the lottery is understandable. Win the jackpot, and you’re rich beyond your wildest dreams. It’s an instant solution to all financial problems, and it doesn’t take any work on your part.

But the odds of it happening are incredibly small. For the Powerball jackpot, your chances are 1 in 292 million. Most players don’t even win small prizes.

If you enjoy playing the lottery, then by all means, buy a ticket or two. It’s your money. But don’t spend too much on it, and only look at it as a fun diversion. If you’re hoping to get rich, there’s a much more effective way to do that.

How to become a millionaire without buying lotto tickets

Winning the lottery isn’t the only way to be successful. Anyone can improve financially and eventually become a millionaire or even a multimillionaire. But it doesn’t happen overnight.

For most people, financial success is the result of following good money habits, day in and day out. Here are the most important money habits to start building wealth:

• Be careful with your spending. It’s never good to spend more than you earn. If possible, try to keep your regular bills to about 60% or less of your income. For example, if you make $5,000 per month, aim to spend no more than $3,000 on your expenses.
• Save and invest a portion of your income. You’ll need savings for emergencies and short-term goals, and investments to grow your money. A good guideline is to save 10% of your income every month and invest another 10%.
• Invest your money in the stock market. This is the key ingredient to building wealth. The U.S. stock market has historically delivered an average return of about 10% per year. An easy way to invest in stocks is with low-cost index funds. You can invest in funds that track the S&P 500 (500 of the largest publicly traded companies) or the whole stock market.
• Maximize your earning potential. You don’t need to earn an above-average income, but it helps. Look for steps you can take to earn more, whether that’s negotiating a raise at work, job hunting, or starting a side business.

These habits pay off more and more the longer you follow them. Let’s say you invest $400 a month and get an 8% annual return, a reasonable amount based on the stock market average. After five years, you’ll have $30,412. After 40 years, you’ll have $1.34 million. And that number will be even larger if you’re able to increase your income and the amount you invest.

It’s certainly not as exciting as the idea of winning the lottery. That idea rarely becomes reality, though. Play the lotto if you want, but make sure you also have a realistic path to a safe financial future.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.