{"id":372680,"date":"2016-03-31T21:35:00","date_gmt":"2016-04-01T02:35:00","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/gambling-and-lotteries-laws\/details-on-state-state-lottery-laws.html"},"modified":"2016-06-20T19:51:39","modified_gmt":"2016-06-21T00:51:39","slug":"details-on-state-state-lottery-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/gambling-and-lotteries-laws\/details-on-state-state-lottery-laws.html","title":{"rendered":"Details on State Lottery Laws"},"content":{"rendered":"\n
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Details on State Lottery Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

State lotteries have become nearly ubiquitous throughout the country. Forty four states plus the District of Columbia<\/a>, Puerto Rico, and the U.S. Virgin Islands permit lotteries. In virtually all states with lotteries,<\/a> the stated purpose is to raise revenue.<\/p>\n

State-run lotteries can raise quite a bit of revenue in those states which allow them, often for a specific beneficiary (such as K-12 education). Lotteries often include a combination of scratch-off tickets and number-picking games with sizable cash prizes. Imagine smiling Powerball winners displaying $20 million checks for the at-home viewing audience.<\/p>\n

However, there is wide diversity in how the money raised is actually distributed. Most states designate lottery profits for schools and education<\/a>, several states distribute profit to the general fund, or a fund for economic development, such as highway construction, in support of stadium authorities. A few states designate lottery revenues to fund various general environmental activities.<\/p>\n

Examples of How Some States Use Lottery Revenue<\/h2>\n

Many states apply the revenues to more than one purpose. A few states are quite unique. For example, Pennsylvania<\/a> uses its revenue for programs designed to help the elderly with rent rebates and property tax assistance. In Massachusetts<\/a>, a portion of the lottery revenue is used in support of the arts. Two other states, Maryland<\/a> and Washington<\/a>, use substantial portions of their lottery revenue to raise money for sports stadium construction and operation.<\/p>\n

Problem Gambling<\/h2>\n

A number of states have enacted provisions designed to help problem gamblers. In Louisiana<\/a>, for example, all lottery tickets must be be printed with a toll-free gambler’s assistance hotline phone number. On a national level, the National Council on Problem Gambling<\/a> (NCPG) provides assistance and resources to those with an addiction to gambling.<\/p>\n

Wage Garnishment<\/h2>\n

One interesting provision in many state lottery laws provides for the garnishment of prizes to collect various debts, ranging from unpaid taxes<\/a> to outstanding child support obligations<\/a>. Usually, only prizes over a certain amount may be garnished. For example, Texas<\/a> permits garnishment of prizes won by persons who have defaulted on guaranteed student loans.<\/p>\n

Multiple Lotteries<\/h2>\n

Some states have various ways of offering lottery games. Maine<\/a>, New Hampshire<\/a> and Vermont<\/a> all authorize two lotteries: their own and a Tri-State Lotto that is authorized under a tri-state compact. The proceeds are distributed equally among the three states.<\/p>\n

It is interesting to note that Nevada<\/a> does not permit a state lottery. Perhaps this would be seen as competing with the state’s massive casino industry.<\/p>\n

A Final Word on State Lotteries<\/h2>\n

Overall, the matter of state lotteries is only one category, albeit a big one, of the laws relating to gambling. The law of gambling is a very complex and varied area of state regulation. Of late, gambling itself has been subject to many political pressures, both for and against its legalization. See State Gambling Laws<\/a> to learn more.<\/p>\n

Note:<\/b> State laws are constantly changing — contact a<\/i> gaming attorney in your state<\/i> or conduct your own legal research to verify the state law(s) you are researching.<\/i><\/p>\n

Research the Law:<\/h2>\n