In the United States, lotteries are run by 48 jurisdictions: 45 states plus the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

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Lotteries are subject to the laws of and operated independently by each jurisdiction, and there is no national lottery organization. However, consortiums of state lotteries jointly organize games spanning larger geographical footprints, which in turn, carry larger jackpots. Two major lottery games, Mega Millions and Powerball, are both offered in nearly all jurisdictions that operate lotteries, and serve as de facto national lotteries.

In fiscal 2018, Americans spent $77.7 billion on various lotteries, up about $5 billion from 2017.^[1]

History[edit]

Historian Neal Millikan using newspaper advertisements in the colonial era found at least 392 lotteries were held in the 13 colonies.^[2]

Every effort is made to ensure the accuracy of the winning numbers, prize payouts and other information posted on the Pennsylvania Lottery's website. The official winning numbers are those selected in the respective drawings and recorded under the observation of an independent accounting firm. ALL THINGS PENNSYLVANIA LOTTERY RELATED PENNSYLVANIA LOTTERY SCRATCH-OFFS. This is the state where it all started for us! The Pennsylvania Lottery used to publish a limited set of data, but they have gotten much better. In fact, they’re at the very top of all states for publishing data about their Scratch-offs! PA iLottery began with a small collection of instant win scratch card games (including reveal-style scratch-offs, crossword puzzles and gem-smashing themes), but lottery officials made it clear the Pennsylvania lottery. PA iLottery, toll-free at 1-833-530-PLAY (7529) The Pennsylvania Lottery. Benefits Older Pennsylvanians. 1200 Fulling Mill Road, Suite One, Middletown, PA 17057 palottery.com 1-800-692-7481. PA iLottery began with a small collection of instant win scratch card games (including reveal-style scratch-offs, crossword puzzles and gem-smashing themes), but lottery officials made it clear the Pennsylvania lottery will also sell tickets online to real-world drawings and possibly offer virtual sports betting and instant keno in the future.

Lotteries were used not only as a form of entertainment but as a source of revenue to help fund the colonies. The financiers of Jamestown, Virginia, for instance, funded lotteries to raise money to support their colony.^[3] These lotteries were quite sophisticated for the time period and even included instant winners.^[3] Not long after, each of the 13 original colonies established a lottery system to raise revenue.^[3]

In the early post-independence era, legislators commonly authorized lotteries to fund schools, roads, bridges, and other public works.^[4] Evangelical reformers in the 1830s began denouncing lotteries on moral grounds and petitioned legislatures and constitutional conventions to ban them.^[5] Recurring lottery scandals and a general backlash against legislative corruption following the Panic of 1837 also contributed to anti-lottery sentiments.^[5] From 1844 to 1859 alone, 10 new state constitutions contained lottery bans.^[5] By 1890, lotteries were prohibited in every state except Delaware and Louisiana.^[6]

Lotteries in the United States did not always have sterling reputations. One early lottery in particular, the National Lottery, which was passed by Congress for the beautification of Washington, D.C. and was administered by the municipal government, was the subject of a major U.S. Supreme Court decision – Cohens v. Virginia.^[7]

The lottery never paid out,^{[3][clarification needed]} and it brought to light the prevalent issue of crookedness amongst the lotteries in the United States. The wave of anti-lottery protests finally broke through when, by 1860, all states had prohibited lotteries except Delaware, Missouri, and Kentucky.^[3] The scarcity of lotteries in the United States meant that tickets were shipped across the country and eventually led to the creation of illegal lotteries.^[3] In 1868, after years of illegal operation, the Louisiana State Lottery Company obtained a 25-year charter for its state lottery system.^[3] The charter was passed by the Legislature due to immense bribing from a criminal syndicate in New York.^[3] The Louisiana Lottery Company derived 90% of its revenue from tickets sold across state borders.^[3] These continued issues of corruption led to the complete prohibition of lotteries in the United States by 1895.^[3] It was discovered that the promoters of the Louisiana Lottery Company had accrued immense sums of money from illegitimate sources and that the Legislature was riddled with bribery.^[3] Before the advent of government-sponsored lotteries, many illegal lotteries thrived, such as number games.

Modern era[edit]

The first modern government-run US lottery was established in Puerto Rico in 1934.^[8] This was followed, decades later, by the New Hampshire lottery in 1964.Instant lottery tickets, also known as scratch cards, were introduced in the 1970s and have become a major source of lottery revenue. Individual lotteries often feature three-digit and four-digit games akin to numbers games; a five number game, and a six number game (the latter two often have a jackpot.) Some lotteries also offer at least one game similar to keno, and some offer video lottery terminals. Presently, many US lotteries support public education systems.

As of November 2019, lotteries are established in 45 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands; the most recent U.S. state to legalize a lottery is Mississippi, with lottery commission members receiving appointments on October 19, 2018.^[9]

The first U.S. multi-state lottery game was formed in 1985 in Maine, New Hampshire, and Vermont; its flagship game remains Tri-State Megabucks. In 1988, the Multi-State Lottery Association (MUSL) was formed with Iowa, Kansas, Missouri, Oregon, Rhode Island, West Virginia, and the District of Columbia as its charter members; it is best known for Powerball, which was designed to create large jackpots. Another joint lottery, The Big Game (now called Mega Millions) was formed in 1996 by six lotteries as its charter members.

As of October 2020, each of the 44 state lotteries offer both Mega Millions and Powerball as a result of a 2009 agreement between the Mega Millions consortium and MUSL to cross-license their game to one another's members, although the two organizations continue to administer Mega Millions and Powerball separately. Mississippi was the most recent to join both, beginning sales in January 2020. Puerto Rico is the only jurisdiction not to offer both, as they do not offer Mega Millions.

State revenues[edit]

State lotteries have become a significant source of revenue for states, raising $17.6 billion in profits for state budgets in the 2009 fiscal year (FY) with 11 states collecting more revenue from their state lottery than from their state corporate income tax during FY2009.^[10]

Lottery policies within states can have conflicting goals.^[11] Given that instructions are passed down from state legislatures, lottery implementation is often expected to be carried out with reduced advertising and funding while still producing the same amount of revenue.^[11] This issue led states to look for loopholes in the system. Massachusetts, for example, had its advertising budget dramatically cut, and therefore started using free-play coupons as money to pay for advertising.^[11] This led to an IRS investigation into alleged non-reporting of income because the IRS considered the coupons to have monetary value.^[11]

States with no lotteries[edit]

Among the states that do not have lotteries, Alabama and Utah cite religious objections.^[12]Nevada's lucrative gambling industry has lobbied against a state lottery there, fearing the competition;^[13] similarly, the Mississippi Gaming Commission expressed concern that a state lottery would constitute a 'competing force' for gambling dollars spent at Mississippi casinos. Despite this, in August 2018, Mississippi passed legislation to create a state lottery. GovernorPhil Bryant expressed his support for the lottery to fund transportation in the state and has indicated he will sign the bill. Sales, initially only scratch tickets, began on November 25, 2019. Mega Millions and Powerball tickets became available to the state on January 30, 2020.^[14]

Alaska and Hawaii, being outside the contiguous United States, have not felt the pressure of losing sales to competitors.^[12] However in February 2020, Alaska's governor Mike Dunleavy introduced legislation proposing the establishment of an Alaska Lottery Corporation, as part of an effort to overcome a budgetary deficit.^[15]

New technologies[edit]

In recent years, new applications such as Lottery.com and Jackpocket were created for people to purchase lotteries over their smartphones.^[16]

U.S. lotteries[edit]

Key

2by2 = 2by2
C4L = Cash4Life
LA = Lotto America
LFL = Lucky for Life
TSM = Tri-State Megabucks consortium
0 = only multi-jurisdictional games are Mega Millions and/or Powerball

Other joint U.S. lotteries[edit]

These games also are offered by multiple lotteries.^[17] Some of these games feature a shared progressive jackpot (noted by °):

• 2by2 (3 lotteries): Kansas, Nebraska, North Dakota
• Cash4Life (9): Florida, Georgia, Indiana, Maryland, New Jersey, New York, Pennsylvania, Tennessee, Virginia
• Lotto America° (13): Delaware, Idaho, Iowa, Kansas, Maine, Minnesota, Montana, New Mexico, North Dakota, Oklahoma, South Dakota, Tennessee, West Virginia
• Lucky for Life (26): Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Idaho, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Vermont, Wyoming
• Tri-State Lottery (Megabucks Plus°, Pick 3 (Day & Night), Pick 4 (Day & Night), Fast Play°): Maine, New Hampshire, Vermont

See also[edit]

References[edit]

1. ^Horton, Alex (October 18, 2018). 'How Mega Millions and Powerball changed the odds to create monster jackpots'. The Washington Post. Retrieved October 19, 2018.
2. ^Millikan, Neal (2011). Lotteries in Colonial America. Routledge. p. 2.
3. ^ ^abcdefghijkRoger Dunstan (January 1997). 'History of Gambling in the United States'. Archived from the original on September 10, 2010.
4. ^McMaster, John Bach (1911). A History of the People of the United States: From the Revolution to the Civil War. Appleton and Company. p. 588.
5. ^ ^abcSzymanski, Ann-Marie E. (2003). Pathways to Prohibition: Radicals, Moderates, and Social Movement Outcomes. Duke University Press. pp. 95–96. ISBN978-0-8223-3169-8.
6. ^John Houston Merrill; Charles Frederic Williams; Thomas Johnson Michie; David Shephard Garland (1890). The American and English Encyclopædia of Law: Least to Mail. Edward Thompson Company. p. 1172.
7. ^Jean Edward Smith, John Marshall: Definer Of A Nation, New York: Henry Holt & Company, 1996, pp. 456-459
8. ^'Ley Núm. 74 de 2006 -Ley del Programa de Ayuda a Jugadores Compulsivos de Puerto'. Lexjuris.com. Retrieved July 26, 2012.
9. ^Howard, Morgan. 'Gov. Bryant appoints MS Lottery Corporation board of directors'. wlox.com. Retrieved October 22, 2018.
10. ^'U.S. lotteries and the state taxman'. Reuters. July 15, 2011.
11. ^ ^abcdNGISC (August 3, 1999). 'National Gambling Impact Study Commission Lotteries'.
12. ^ ^ab'Five states that don't have lotteries'. Playport. July 30, 2019. Retrieved November 26, 2019.
13. ^'Knowing Vegas: Why doesn't Nevada have a state lottery?'. Las Vegas Review-Journal. April 11, 2014. Retrieved January 8, 2020.
14. ^'Mississippi lottery bill passes House, headed to governor'. WAPT. Associated Press. Retrieved August 29, 2018.
15. ^Maguire, Sean. 'Governor proposes independent corporation to run an Alaska lottery'. ktuu.com. Retrieved May 26, 2020.
16. ^'Jackpocket App Allows You to Buy Lottery Tickets Using Your Phone'. ABC News. September 29, 2015.
17. ^'Games'. Multi-State Lottery Association. Archived from the original on May 19, 2016. Retrieved May 7, 2016.

Further reading[edit]

• Dasgupta, Anisha S. 'Public Finance and the Fortunes of the Early American Lottery.' QLR 24 (2005): 227+ Online
• Millikan, Neal. Lotteries in Colonial America (2011). excerpt
• Watson, Alan D. 'The Lottery in Early North Carolina.' North Carolina Historical Review 69.4 (1992): 365-387. Online

Pennsylvania Powerball Rules

Visit any licensed retailer in Pennsylvania to fill out a Powerball playslip. You can choose your own numbers or opt for a Quick Pick to receive a random line. The following state-specific rules also apply in the Keystone State:

• You must be at least 18 years of age to play Powerball.
• You can enter up to 26 consecutive drawings in advance.
• Tickets can be purchased up to 9:59pm ET on the night of each drawing, with sales reopening for the following draw shortly after the winning numbers have been confirmed.
• The state will withhold a 3.07 percent tax on your winnings.

You can also watch the Powerball drawing live in Pennsylvania by tuning into one of the stations below:

Prizes worth up to and including $2,500 can be claimed from any licensed retailer in Pennsylvania. If a retailer does not have sufficient cash on the premises to complete the payout, you may have to claim from a different location. When claiming a prize worth more than $600, you will need to fill out a claim form, available from lottery retailers or area offices.

Winnings of $2,501 or above can be claimed by mailing your signed ticket and a completed claim form to one of the addresses below. If claiming from out of state, it is best to send your ticket and form to the Middletown address to ensure it is processed as quickly as possible.

Powerball jackpot prizes must be claimed in person from the Pennsylvania Lottery headquarters in Middletown. You will receive your prize money four to six weeks after you file your claim.

The Pennsylvania Lottery allows Powerball jackpots to be claimed jointly. One member of your lottery pool needs to sign the back of the ticket and fill out a claim form, indicating that the prize is being claimed by a group. That person must then attach a separate sheet to the claim form, listing the names, addresses, and social security numbers of each claimant. For tax reporting purposes, each member must also complete an IRS-5754 form to be sent with the winning ticket and the claim form. These are obtainable from the website of the Internal Revenue Service. Finally, you must inform the lottery if you wish for individual checks to be mailed to each group member.

You have one year from the date of the drawing to come forward and claim your prize. If you don’t claim your winnings before this deadline, the prize amount remains in the lottery fund.

Lottery tickets are regarded as bearer instruments. This means whoever is in possession of a winning ticket can claim a prize with it. You are advised to sign the back of your ticket to make it easier to prove you are its rightful owner in the event of its loss. If your ticket is stolen, you should inform the Pennsylvania Lottery’s Division of Security on 717-702-8026. Prizes may not be paid out if tickets are too damaged to be validated.

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You cannot claim prizes anonymously in Pennsylvania. Under the state’s Right-to-Know law, certain information about you, such as your name, place of residence, and prize amount, will be disclosed to the public. Other information, such as your address, telephone number, and social security number will always remain confidential. You are not required to engage in publicity after you win, but the lottery may ask for a statement to release on your behalf.

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Two-thirds of the Pennsylvania Lottery’s revenue is given back to players in the form of prizes, with another quarter used to benefit the state’s older citizens. The remaining money is used to cover expenses and retailer commissions. The table below shows how lottery revenues are split:

A single ticket from Pennsylvania matched all six numbers to walk away with $457 million on March 17^th 2018. The winning line was bought from a Speedway gas station in Lancaster County, bringing a run of 19 consecutive rollovers to an end. The winner claimed their prize through the Emerald Legacy Trust, opting to take the cash option worth $199 million after tax.

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A group of 48 employees from SEPTA, Philadelphia, shared a $127 million jackpot on April 25^th 2012. Their winning ticket was purchased at The Gallery, Market East. They opted for a $107 million cash lump sum, receiving just over $2 million each. The names of the 48 winners were made public shortly after the drawing, and they included Matt Sheridan, James Lamongelli and Geraldine Gaiser. At 26 years of age, Sheridan was one of the youngest in the group and had only been working at SEPTA for a year. Another winner, Marylou Wagner, spoke of her previous battle with breast cancer, and what the money meant to her. “I battled and beat an aggressive stage-three breast cancer. And I recovered. And returned to work after a long, unpaid absence,” she said.