New Bedford Guide Your Guide to New Bedford and South Coast, MA
This week I read in the local papers and heard on the radio that the Massachusett’s lottery system benefited the rich more than the poor. I had always heard that the Commonwealth distributed money back to the cities and towns based on population size and a few other factors. I wasn’t completely sure, so I decided to do some digging.
The Boston Globe recently published an interesting story detailing how the lottery system in Massachusetts is geared to benefit the affluent towns over the poorest ones. According to the article, some contend the poorest communities in Massachusetts generally spend more on the lottery and receive less back once the state distributes the funds, therefore providing a net loss for the poorest cities/towns. For example, the article went on to point out that Chelsea is one of the poorest cities in Massachusetts. Its residents spend an average of $1,179 per man, woman, and child on tickets last year. In 2013, Chelsea residents spent $8.2 million, but only got back $6.9 million. Clearly a drain on the city, but this was not the case for New Bedford or Fall River.
The Boston Globe’s database reveals that New Bedford residents spend $910.53 per year on lottery tickets, but provide less lottery ticket revenue than the city gets back. In 2013, New Bedford residents spent $17.05 million and the city received $19.45 million from the lottery. That’s a net gain of $2.4 million.
The lottery distribution formula seemed to benefit Fall River even more. Fall River residents spent $13.6 million in 2013, but the city received $20.1 million back. That’s a $6.5 million gain. Even though Fall River has a smaller population and contributed lass to the lottery, the city received more than New Bedford. This is because Fall River has a lower household income ($36,789 vs. $34,437) and a higher poverty rate (21.6% vs 23.2%).
The main negative is that the money flows from the poorest in New Bedford and into the coffers of the city. Yes, the lottery is a net gain for the city, but where does the money go? That question is for a follow on article.
