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Lottery and iLottery in the US - a Traditional and Digital Gaming Fusion

Here in the United States, we’ve seen first-hand how the lottery industry has grown and expanded through the years. Needless to say, the United States boasts a rich history of state-specific lotteries, each offering a unique blend of games and experiences. From their inception as simple raffles to funding colonial ventures in the 1700s, these lotteries have grown into a significant cultural phenomenon - they have, indeed, been part and parcel of our growth as a nation!

Table of Contents

History and law

Age requirements

States without lotteries

Financial management

Responsible gaming

FAQ

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Last updated: November 2024

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Today, they exemplify the widespread appeal and impact of lottery systems, having evolved from traditional draw-based games to innovative digital platforms known as iLotteries. This evolution marks a significant shift in the lottery landscape, blending the charm of traditional lotteries with the convenience and accessibility of digital technology. One brilliant example is the state lottery. State lotteries provide a variety of draw-based games such as Powerball, Mega Millions, Pick 3, Pick 4, Cash 5, and numerous instant win games. Tickets are available through licensed retailers, including convenience stores and grocery stores, across 45 states (48 jurisdictions).

And now, you can take advantage of online options through official lottery websites and mobile apps, called iLottery, which allow players to participate in select draw games and instant wins from anywhere. Players can also join Winners' Clubs for managing tickets, tracking winnings, and accessing exclusive benefits.

Each state in the US has developed its own unique lottery system with specific games and offerings. For example, the Texas Lottery offers a game called "Texas Two Step", which is unique to the state. Similarly, California's SuperLotto Plus is a popular game exclusive to the California Lottery. These state-specific games add to the diversity and appeal of the lottery system across the nation.

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iLotteries: the new Digital Revolution

Big online platforms, like Jackpot.com, Jackpocket, Lotto.com or Lottery.com, play a crucial role in bridging the traditional and digital lottery divide. They offer real-time results, jackpot information, and analytical tools, enhancing player engagement and providing a convenient way to stay connected within the lottery community.

They have ultimately transformed and enhanced the lottery experience, merging traditional and digital channels and bringing about a totally novel way of playing (and winning). State-specific digital platforms, such as the Florida Lottery, Michigan Lottery, NC Lottery, NY Lottery, Ohio Lottery and PA Lottery showcase this evolution, attracting millions of players and offering comprehensive online lottery or iLottery experiences.

The Educational Impact

There’s no denying the solid fact that a cornerstone of state lotteries is their significant contribution to education. The revenue generated from ticket sales is directed to the state's General Fund, earmarked for educational purposes. One great example is the Florida Lottery, which has contributed over $37 billion to education since its inception, and funded more than 880000 Bright Futures scholarships. Similarly, the New York Lottery provided $3.59 billion in the fiscal year of 2020-2021 to support education statewide.

But that’s only the tip of the iceberg - where are these state funds spent specifically? These funds support a range of initiatives, including teacher salaries, early childhood education, scholarships, and school infrastructure projects. In North Carolina, another brilliant example of state-funded lottery systems, lottery funds have been instrumental in building and repairing schools, with over $725 million allocated for these purposes since 2006. Additionally, the Ohio Lottery has contributed over $26 billion to education since 1974, with annual contributions averaging around $1 billion in recent years.

State lottery websites provide detailed information on the allocation and impact of these funds, ensuring transparency and accountability. By offering a clear breakdown of how lottery revenues are utilized, these platforms reinforce the positive impact of lottery participation on community development and educational advancement.

A Future Focused on Education and Innovation

The future of US lotteries is clear cut: it is characterized by a harmonious blend of state-specific games and digital advancements. While maintaining the allure of traditional lotteries, the growth of iLotteries and online platforms offers increased accessibility and innovation. Importantly, the US lottery system serves as a significant source of funding for public education in each state. But as we embrace this era of entertainment and potential winnings, it's crucial to emphasize the importance of responsible gambling and playing within one's means.

Economic Impact Beyond Education

The economic impact of lotteries extends beyond educational funding. Lotteries also create jobs, both directly within the lottery commissions and indirectly through retailers and suppliers. They also provide business opportunities for thousands of retailers who sell lottery tickets, earning commissions on sales and bonuses for selling winning tickets. The revenue generated by lotteries also contributes significantly to state budgets, helping fund various public services.

As you may have noticed, state and national lottery systems greatly contribute to the US economy as a whole. It’s even a source of pride in the US that these lotteries do a lot for the state and federal government - and what was once just a source of entertainment has blossomed into a multibillion dollar source of funding we can all take advantage of and benefit from.

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Latest Lottery News

June 12th, 20243 mins

DraftKings Caps Off $750 Million Acquisition of Jackpocket Lottery App

May 30, 2024– Sportsbook and iGaming company DraftKings is capping the month of May with an acquisition of the Jackpocket Lottery app. The $750 million cash-and-stock acquisition leaves the company confident in tapping into the US lottery vertical in 2024.

According to a filing with the U.S. Securities and Exchange Commission, DraftKings issued more than 7.5 million shares of its Class A common stock (par value $0.0001 per share) on Wednesday as part of the procedure to complete the deal. The initiative to expand and increase its cross-selling potential through online casinos and sports betting remains steadfast.

CEO and Co-founder of DraftKings issued a statement saying “We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem.” He further highlights the improved effort of the iGaming company’s customer acquisition and customized product innovation while broadening its footprint in the sportsbook and iGaming market.

One of the key steps to follow after this completed acquisition is the integration of Jackpocket into DraftKings operations. The company is focused on staying consistent when it comes to delivering unprecedented gaming experiences to its existing and new customer base. Of course, it isn’t lost on DraftKings to push for more responsible gaming initiatives while providing safe, innovative, and interactive real-money gaming options.

Long-term Implications of the Deal

While the DraftKing acquisition is well received by Jackpocket, prominent stock analysts disagree over the deal's long-term effects. The reputable sportsbook company unlocked an incremental cross-selling vertical" through Jackpocket, with possibilities for single-wallet integrations, according to a February analysis by Jordan Bender of JMP Securities.

DraftKings anticipates that the Proposed Transaction will result in an extra $260 million to $340 million in revenue and $60 million to $100 million in adjusted EBITDA in fiscal year 2026, assuming conservatively that there are no further OSB and iGaming legalizations in the US.

About DraftKings

Founded in 2012 and headquartered in Boston, DraftKings Inc. is a well-known provider of digital sports entertainment and gambling. They provide digital media, regulated gaming, and daily fantasy. DraftKings is a major player in iGaming and sports betting, operating in 26 states as well as Ontario, Canada. They stress responsible gaming and corporate social responsibility and have partnerships with major sports leagues.

About Jackpocket

Jackpocket is an online lottery app that aims to provide a lottery participation method that is more responsible, enjoyable, and convenient for savvy digital players. Ordering official state lottery tickets is made simple and secure with Jackpocket, the first lottery app in the US to be licensed by a third party. Arizona, Arkansas, Colorado, Idaho, Massachusetts, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Puerto Rico, Texas, Washington, D.C., and West Virginia are the current states where Jackpocket is accessible.

by Joey Dacillo

June 20th, 20245 mins

Online Lottery Courier Jackpot.com Links Up With Associated Press

June 18, 2024 – Jackpot.com declared on Wednesday that it has joined the ranks of the Associated Press, an independent worldwide news agency that was established in 1846, as its official lottery courier.

Jackpot.com is still reaching out and aiming for potential new clientele. In the US, where Jackpot.com mainly operates, the media outlet's website will host lottery results thanks to its AP relationship.

Through the company's courier service, Jackpot.com makes lottery tickets available for purchase online to residents of six states. In Arkansas, Massachusetts, New Jersey, New York, Ohio, and Texas, the platform and mobile app are fully operational, however, lotteries in each of those states don’t permit online sales of lottery tickets.

Jackpot.com’s CEO and co-founder Akshay Khanna shared in a statement that the collaboration with AP isn’t just about “Selling tickets- we’re transforming the landscape of lottery gaming.”

Responsible Gaming Protocols

With the ability to set spending limits and default limits on daily deposits, as well as offering self-exclusion, self-suspension, and automated notifications that offer assistance should problematic behavior be detected, Jackpot.com has made a significant investment in responsible gaming protocols. Plus, Jackpot.com is the only lottery courier service that has received the National Council on Problem Gambling's iCap certification since its establishment.

The management group of Jackpot.com has a track record of success in the gaming, technology, and licensing sectors. The group is led by co-founder and CEO of Jackpot.com Akshay K. Khanna, a seasoned sports and licensing executive who previously oversaw the strategy group at Harris Blitzer Sports & Entertainment and StubHub's North American business; other co-founders include Roi More, who founded Gett; and Yariv Ron, a seasoned veteran of the real money gaming industry.

Expansion and Future Prospects

The partnership with the Associated Press marks a significant milestone in Jackpot.com's efforts to expand its footprint and enhance its visibility in the competitive lottery market. By leveraging AP's extensive network and reputation for reliable news dissemination, Jackpot.com aims to attract a broader audience and foster trust among potential customers.

Jackpot.com has indicated interest in extending its services to additional states when regulations change, in addition to current activities in the six states above. The organization is assiduously tracking alterations in legislation and interacting with state authorities to investigate prospects for expansion. As more states investigate legalizing online lottery sales, Jackpot.com is anticipated to be positioned as a leader in the online lottery courier market because of this proactive approach.

Technological Innovations

Jackpot.com is investing in cutting-edge technologies to improve customer experience and support its aggressive expansion objectives. In order to provide a smooth and safe transaction process, the company's platform and mobile app are made to let users buy lottery tickets with trust and convenience. To safeguard user information and stop fraud, sophisticated encryption, and security procedures are in place.

Moreover, the lottery site is investigating how to combine machine learning and artificial intelligence to customize the user experience. By analyzing user behavior and preferences, these technologies may provide personalized promotions and recommendations, which boosts user engagement and retention.

Community Engagement and Corporate Responsibility

Jackpot.com is dedicated to giving back to the community despite its business goals. In the areas where it operates, the firm has started several initiatives to promote neighborhood nonprofits and community projects. Jackpot.com seeks to improve the lives of those it serves and create a positive effect by collaborating with non-profit organizations.

Jackpot.com also prioritizes honesty and openness in its business practices. Reports about the company's financial performance attempts to promote ethical gaming, and community contributions are frequently posted on its website. Customers and stakeholders are more likely to trust and believe in you when you are transparent.

The collaboration between Jackpot.com and the Associated Press is poised to bring significant benefits to both parties. As Jackpot.com continues to innovate and expand its services, it is well-positioned to become a dominant player in the online lottery market.

by Joey Dacillo

June 20th, 20243 mins

Connecticut Lottery Teams Up with IGT to Launch Digital Platform

June 19, 2024 – The Connecticut Lottery Corp. is able to sell lottery tickets online thanks to a statute approved by Governor Ned Lamont three years ago. The system is essentially operational but the Lottery Corp. has not disclosed the "soft launch," which is limited to the first 5,000 signups. However, the lottery website has warned of delays in delivering confirmation emails, so things aren't proceeding as planned.

Nobody can predict when the lottery's many games, including Keno, will be fully available for purchase online. According to a lottery spokesperson, it might happen as soon as Thursday. The state Department of Consumer Protection, which oversees gaming, must first certify that the systems are operational.

The soft launch is in place for laptop and desktop users and avid iPhone users. Android apps will be available starting in July, the lottery website said Monday.

The most recent troubles at the quasi-public Lottery Corp. are reminiscent of a long list of earlier ones. These include a continuing probe into the new retail sales system, which is being managed by a recently hired outside vendor called International Game Technology PLC, based in Great Britain, or IGT, that was started late last year. However, according to state Rep. Greg Howard, R-Stonington, "They’ve made a few changes so we’ll see if they’re moving in the right direction.”

2023 Returns and Commission

In the most recent fiscal year, 2022–2023, the lottery sold $1.7 billion worth of tickets, giving the state $404 million in revenue and over 2,800 retail establishments $88 million in commissions. Those are significant figures. Given that many of them originate from those who can least afford it, I hope the marketing strategy is cautious in both who it targets and how.

As it has in the past, IGT, which was not operational throughout the hacking incident and app glitch, directed any inquiries to the Lottery Corp. Spokesman for Connecticut Lottery Corp. Arthur Mongillo did not address the issues other than stating that since it's a soft launch, bugs are normal.

"With the regulatory nature of things and the lack of communication at times, add in a few delays such as the replacement of our gaming system, this is pretty par for the course. We don’t want to rush a product to market that’s going to be flawed," Mongillo added.

On or around June 10, the lottery sales began with a soft start that received little to no media attention. A few clients were able to register via the Lottery Corp. app on their smartphones.

by Joey Dacillo

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Legal and Regulatory Changes

The legal landscape of US lotteries has seen dramatic shifts over the years. Following a period of widespread popularity as well as acceptance, lotteries faced opposition and were banned in many states by the 1890s due to concerns over corruption and moral objections. The mid-20th century, however, saw a resurgence of lotteries, beginning with New Hampshire establishing a modern government-run lottery in 1964. Moreover, in 2011, there was a change in the federal Wire Act law that transformed how states began offering online lotteries. It was this Wire Act, which came into law in 1961, that banned electronic gambling transactions - but the 2011 law changed all this; as the US Department of Justice stated that the Wire Act only referred to sports betting.

It was in March of 2012, therefore, that Illinois began selling lottery tickets online, which was then followed by other states. Now, many states offer online lottery tickets for both in-state lotteries and the national lotteries such as Powerball and MegaMillions. This resurgence marked the beginning of the contemporary era of state lotteries and online lotteries, with regulations evolving to ensure fair play and transparency.

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The Historical Context of US Lotteries

Have you ever wondered how the lottery system grew in the United States - even where it first began? Well, wonder no more - the history of lotteries in the United States is deeply rooted in the nation's early days. Colonial-era lotteries were not just popular forms of entertainment but also vital tools for funding public projects. For instance, the Virginia Company of London used a lottery to raise funds for the settlement of Jamestown in the early 1600s. Throughout the 18th and 19th centuries, lotteries played a significant role in financing public works, including roads, libraries, churches, colleges, and canals.

Age Requirements and Various Restrictions

As you may know, state lottery participation in the United States generally requires individuals to be at least 18 years old, adhering to the strict gambling laws and regulations that govern these games. This age requirement, as outlined in various state legislations, is a key aspect of promoting responsible gambling and preventing underage participation.

However, it's important to note that this age limit can vary depending on the state. For instance, in states like Arizona, Iowa, and Louisiana, the minimum age to purchase a lottery ticket is 21, particularly in regions where casino gambling is prevalent. This variation in age requirements across different states underscores the commitment to ensuring that lottery games are enjoyed responsibly and ethically, with a clear emphasis on adult participation.

This discrepancy has even led to situations where individuals can legally buy a ticket but cannot claim their winnings until they reach the age of 21. Such instances necessitate the transfer of winnings to a family member or friend of legal age, which can be a source of frustration and confusion for younger winners.

Furthermore, lottery laws also stipulate certain conditions that might affect the redemption of winnings. For example, if a lottery participant has unpaid child support payments, their lottery winnings might be halted or seized. Additionally, if a lottery ticket is purchased before filing for bankruptcy, the winnings may be allocated to lenders. These legal stipulations highlight the importance of being aware of one's financial and legal standing when participating in lottery games.

Controversies and Challenges

Despite their advantages and benefits, lotteries in the US have faced a plethora of controversies and challenges. One major concern that everyone is acutely aware of is problem gambling, with lotteries sometimes criticized for contributing to gambling addiction. Ethical considerations regarding the promotion of gambling and the reliance on revenue from a form of entertainment that can be addictive are ongoing debates. Balancing revenue generation with social responsibility remains a critical challenge for state lotteries.

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But it can be said that the debate has been softened somewhat, with many states proving that a balance could exist - and that out of the ‘bad’ comes the good. The key is consistency - consistency in being stringent with the laws and regulations concerning gambling per se, consistency in coming up with various other programs that make use of the funds wisely, and consistency in ensuring that each state resident benefits from the allocation of funds through whatever means possible, whether it’s through education, healthcare, infrastructure and public works, and the like.

Legal Considerations for Ex-Felons and Out-of-State Wins

Interestingly, there are no laws preventing ex-felons from purchasing and redeeming lottery tickets. This has led to debates and discussions about whether serious offenders, such as ex-sex offenders, should be allowed to participate in lotteries, especially after instances where such individuals have won significant amounts.

Moreover, purchasing lottery tickets in a different state than where one resides is legal, but it comes with its own set of rules. The tax implications for out-of-state wins can vary, with some states imposing additional state taxes on top of federal taxes. This variation in tax rates, depending on the state of purchase and the winner's home state, underscores the need for cross-state lottery participants to be well-informed about the tax laws applicable to their winnings.

States Without Lotteries - Online or In-Store

While lotteries are widespread across the United States, there are five states where lotteries are notably absent: Alabama, Alaska, Hawaii, Nevada, and Utah. Each of these states has its specific reasons for not participating in the lottery system.

Alabama and Utah both cite religious and moral objections as primary reasons for not having state lotteries. In these states, opposition to gambling is influenced by religious beliefs that dominate the political landscape.
Alaska, due to its unique geographical location and relatively small population, has not felt the pressure of losing out on lottery revenues to neighboring states, which is often a driving factor for states to establish their own lotteries.
Hawaii also does not have a state lottery, largely due to concerns about maintaining the state's image as a family-friendly tourist destination. The state government has resisted introducing different forms of gambling that might alter this image.
Nevada, known for its robust gambling industry centered around cities like Las Vegas and Reno, does not have a state lottery. The absence of a lottery here is primarily due to the gambling industry's concerns about competition. The industry argues that a state lottery could divert revenue away from casinos and other gaming establishments.
There are also other states where the presence of online lottery purchases are restricted (but which offer in-person lottery ticket purchases). These are California, Connecticut, Florida, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Vermont, Washington, Wisconsin, and Wyoming.

The absence of online or offline lotteries in these states reflects a complex interplay of cultural, moral, economic, and political factors unique to each region.

Financial Management Post-Winning

Winning the lottery can lead to significant financial changes, and it's crucial for winners to manage their newfound wealth responsibly. Financial analysts often recommend paying off debts and investing a portion of the winnings wisely.

It's also important to be aware of the potential psychological impacts of winning, such as dealing with depression, anxiety, or family disputes over money.

Responsible financial management and seeking counseling or financial advice post-winning can help mitigate these issues and ensure a more stable and positive outcome from lottery winnings. Remember also that you are not alone - even with your newfound wealth, you can still turn to various entities and groups and take advantage of different tools and resources to help you manage your winnings responsibly and adjust your lifestyle accordingly.

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Emphasizing Responsible Gaming

The GambleSpot team encourages all participants to approach lottery games with mindfulness and responsibility. Bear in mind that lottery games are a form of entertainment and should not be relied upon as a financial solution. If you or someone you know is struggling with gambling addiction, seek assistance from the available resources and support systems. By playing responsibly, you can enjoy the excitement of lottery games while ensuring your well-being and financial health.

There’s absolutely no reason why you can’t have fun and pleasure while playing the lottery - whether it’s an in-state lottery, an instant win scratch-card, or a chance at MegaMillions or Powerball. At the end of the day, only you will have the final say - so you can choose to have fun and enjoyment while being responsible at the same time, or you can choose to let it control you. The choice is yours, and we believe it’s an obvious choice.

FAQ

How old to buy lottery tickets?

The minimum age to buy lottery tickets in the U.S. is generally 18, but it can be 21 in states like Arizona, Iowa, and Louisiana.

How to win the lottery?

Winning the lottery is based on luck, with no guaranteed method. Strategies include buying more tickets or joining lottery pools, but responsible gambling is essential.

What is iLottery?

iLottery is the digital version of traditional lotteries, offering online participation in various lottery games through platforms and mobile apps.

iLottery what are the odds?

The odds of winning iLottery games are similar to traditional lotteries and vary by game, with major jackpots like Powerball having odds of 1 in several hundred million.

Wia Van Cauwenberghe

Editor | Writer

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