(Contributing author: Jason P. M. Weir, Client Service Financial Associate)
Massachusetts residents spend billions of dollars every year on gambling.
In Fiscal Year 2025, the Massachusetts State Lottery reported approximately $5.96 billion in total sales, including nearly $3.96 billion from instant tickets such as scratch tickets. During that same fiscal year, Massachusetts sports wagering generated nearly $755 million in gross gaming revenue.
That is an enormous amount of money being spent on scratch tickets, Powerball, Mega Millions, sports betting, casinos and other forms of gambling.
For many people, gambling is simply entertainment. But as financial advisors, we believe it is worth asking a different question:
What could that money do for you instead?
The Opportunity Cost of Gambling
Spending $10, $20 or $50 at a time may not feel like a significant financial decision. But small amounts can add up quickly over the course of a year.
More importantly, every dollar spent is a dollar that cannot simultaneously be used to support your financial future.
Instead of spending $20 on a few lottery tickets or a sports bet, you could put that same $20 toward:
- Your retirement
- An emergency fund
- A Roth IRA or other investment account
- Paying down high-interest debt
- Saving for a home
- Building long-term wealth
The goal isn't necessarily to eliminate gambling from your life. It's to recognize the opportunity cost of every dollar you spend.
The Odds
It's important to put the potential payoff of gambling into perspective.
For example, the odds of winning the Mega Millions jackpot are approximately 1 in 290 million. Powerball's jackpot odds are approximately 1 in 292 million.
In other words, the chance of winning a jackpot large enough to potentially be life-changing is extraordinarily small.
Scratch tickets can have better odds of winning larger prizes, but those odds are still often measured in the hundreds of thousands or millions to one, depending on the game and prize. For example, a current Massachusetts Lottery $4 million scratch ticket lists odds of 1 in 1.68 million for a $1 million prize.
This is where financial planning offers a fundamentally different approach.
Instead of relying on a tiny probability of a life-changing payout, you can deliberately allocate money toward goals that are much more within your control.
No one can guarantee investment returns—but you can control how much you save, how consistently you invest, how you diversify and how long you stay invested.
Turn Gambling Money into Investing Money
One of the most effective financial habits is to make saving and investing automatic.
If you regularly spend $20 a week on gambling, consider redirecting some—or all—of that amount toward your financial goals.
You could even create a simple rule:
For every dollar spent on gambling, invest a dollar as well.
This allows you to continue enjoying occasional entertainment while simultaneously building a habit of paying yourself first.
Let Time Work for You
The biggest advantage investors have isn't necessarily how much money they start with.
It's time.
Money invested consistently has the potential to compound over many years. Your contributions can potentially earn returns, and those returns can then generate additional growth.
That is very different from spending money hoping for a lucky outcome.
Gambling is built around the possibility of winning. Investing is built around participating in financial markets and pursuing long-term growth potential.
Neither eliminates risk, but the purpose behind the two is fundamentally different.
Give Yourself a Better Chance
There is no guarantee that investing will make you wealthy. Markets fluctuate, investments lose value and every investment strategy involves risk.
But when you consistently direct money toward your financial goals, you are actively increasing the resources available to accomplish those goals.
The more intentional money you put toward saving, investing and reducing debt, the better positioned you are to build financial security over time.
That's a very different proposition from hoping to be one of the extraordinarily small number of people who hits a life-changing jackpot.
Change the Question
The next time you're about to buy a scratch ticket, place a bet or put money into a casino, consider asking yourself:
"What if I put this money toward my financial goals instead?"
You don't have to stop having fun with your money. But you should make sure your entertainment spending isn't coming at the expense of your long-term financial goals.
At the end of the day, financial planning is about making intentional decisions with your money.
Don't just spend money hoping to get lucky. Put some of it to work building the future you want.
This article is for educational purposes only and is not individualized investment advice. Investments involve risk, including the potential loss of principal. A financial advisor can help you determine an investment and savings strategy based on your individual goals, time horizon and risk tolerance.
Sources: Massachusetts State Lottery, FY2025 Lottery Results; Massachusetts Gaming Commission, FY2025 Sports Wagering Report; Massachusetts State Lottery, Mega Millions and Powerball odds.