Lotteries By Country - Country Details - United States

United States

In the United States, the existence of lotteries is subject to the laws of each jurisdiction; there is no national lottery.

Private lotteries were legal in the US in the early 19th century. In fact, a number of US patents were granted on new types of lotteries. In today's vernacular, these would be considered business method patents.

Before the advent of government-sponsored lotteries, many illegal lotteries thrived; see Numbers game and Peter H. Matthews. The oldest continuing government-run lottery in the US was established in Puerto Rico in 1934; the oldest continuing lottery on the US mainland began in 1964 in New Hampshire. As of 2011, lotteries are established in 43 states, the District of Columbia, Puerto Rico, and the Virgin Islands;

The first modern US mult-jurisdictional lottery was formed in 1985, linking Maine, New Hampshire, and Vermont. In 1988, the Multi-State Lottery Association (MUSL) was formed with Oregon, Iowa, Kansas, Rhode Island, West Virginia, Missouri, and the District of Columbia as its charter members; it is best known for Powerball, which was designed to build up very large jackpots. The other major US multi-jurisdictional game, then known as The Big Game (now called Mega Millions), was formed in 1996 by Georgia, Illinois, Massachusetts, Maryland, Michigan and Virginia as its charter members. In late 2009, MUSL and the Mega Millions consortium agreed to allow US jurisdictions then with either game to sell tickets for both beginning January 31, 2010. As of April 13, 2011, Mega Millions is available in 43 jurisdictions, with Powerball in 44; both games are available in 42 jurisdictions.

Instant lottery tickets, also known as scratch cards, were introduced in the 1970s, becoming a major source of US lottery revenue. Some jurisdictions have introduced keno and/or video lottery terminals (slot machines in all but name).

Other major US lotteries include Cashola, Hot Lotto, and Wild Card 2, some of MUSL's other games. (As of April 13, 2011, Cashola will end when its next jackpot is won.)

With the advent of the Internet it became possible for people to play lottery-style games on-line, many times for free (the cost of the ticket being supplemented by merely seeing an ad or some other form of revenue). GTech Corporation, headquartered in West Greenwich, Rhode Island, administers 70% of worldwide online and instant lottery business, according to its website. With online gaming rules generally prohibitive, "lottery" games face less scrutiny. This is leading to the increase in web sites offering lottery ticket purchasing services, charging premiums on base lottery prices. The legality of such services falls into question across many jurisdictions, especially throughout the United States, as the gambling laws related to lottery play generally have not kept pace with the spread of technology.

Presently, large portions of many American state lotteries are used to fund public education systems.