Finance

Which States Have a Lottery and How They Operate

As of the newest available public data, 45 states plus the District of Columbia, Puerto Rico, and the U.S. Virgin Islands operate a lottery, while five states have no lottery. T...

Mara Ellison
Which States Have a Lottery and How They Operate

States With a Lottery and Their Game Types

As of the newest available public data, 45 states plus the District of Columbia, Puerto Rico, and the U.S. Virgin Islands operate a lottery, while five states have no lottery. The states without a lottery are Alabama, Alaska, Hawaii, Nevada, and Utah. Most participating states run a mix of in-state draw games, multi-state jackpot games, and fast-play-style terminal games through a state lottery commission or corporation. The oldest modern U.S. lottery is the New Hampshire Lottery, established in 1964, and today multi-state games like Powerball and Mega Millions are the largest by ticket sales and jackpots according to Forbes.

Multi-State Games and Joint Lotteries

Powerball and Mega Millions are available in most lottery jurisdictions and routinely produce jackpots above several hundred million dollars, with Powerball starting at $20 million and Mega Millions starting at $25 million. Multi-state games pool ticket sales across states, which increases prize pools and allows the same game rules and drawings in every participating jurisdiction. The Multi-State Lottery Association (MUSL) operates Powerball, while Mega Millions is operated by a separate consortium of lotteries, and both draw results are published on their official websites and through participating state lottery sites on the MUSL website.

How State Lotteries Are Governed and Where Revenue Goes

State lotteries are typically run by a dedicated lottery commission, board, or corporation that is either part of the state government or quasi-governmental, and each body sets rules for game types, retailer licensing, prize structures, and advertising. Revenue from ticket sales is allocated differently by state, but common uses include public education, general fund support, environmental programs, and specific grants for schools or colleges. For example, the New York Lottery sends most of its revenue to the state education fund, while other states direct a portion to lottery retailer commissions and operational costs per New York State law.

Retail Network and Draw Methods

Most states rely on a network of licensed retail locations, including convenience stores, gas stations, grocery stores, and dedicated lottery offices, where players can buy tickets for draw games and terminal-based instant games. Draws for major jackpot games are typically conducted using mechanical ball machines or certified random number generators, with independent auditors and security protocols to ensure integrity. Many states also offer online or app-based purchases for in-state games, while multi-state jackpot games usually require in-person purchase at a licensed retailer, and some jurisdictions are expanding digital access under specific regulatory frameworks as noted by the North American Association of State and Provincial Lotteries.

States Without a Lottery and Notable Exceptions

Alabama, Alaska, Hawaii, Nevada, and Utah currently have no state lottery, with Nevada often cited as an exception due to its strong casino industry and historical resistance to a state lottery. In some states, ballot measures or legislative proposals to authorize a lottery have failed repeatedly due to opposition from gambling-related industries, religious groups, or concerns about fiscal impact. A few jurisdictions have explored limited forms of legal gambling, such as charitable bingo or keno, without establishing a full lottery system, and any future changes would require action by the state legislature or voters per public filings and regulatory disclosures.

Why These Five States Have No Lottery

Nevada's gaming industry has historically opposed a state lottery to

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