A lottery is a form of gambling which involves selling numbered tickets and giving prizes to the holders of numbers drawn at random. Lotteries are outlawed by some governments, while others endorse it to the extent of organizing their own national (state) lottery. It is common to find some degree of regulation by governments, like allowing or prohibiting online sales of tickets. [1] [2]
There are many lottery games that take place in India, all of which are run by state government organizations under the rules and regulations of the federal government. Before 1967 private lotteries were allowed but were later banned in favour for state lotteries. [14]
State governments such as those of Kerala, Punjab, Nagaland, Goa and Sikkim, run their own lottery departments and conduct weekly lottery draws and occasional bumper lottery draws. Government lottery is currently legal in 13 Indian states. [15]
Kerala State Lotteries, established in 1967, under the lottery department by the Government of Kerala was the first of its kind in India. The department was successful and has grown throughout the state of Kerala by contributing to the needful and became the role model for other states for starting their own lotteries. According to the department, it had a profit of Rs 788.42 crore in the 2013-14 financial year, the largest ever, while it made Rs 681.76 crore in profit in 2012-13. When the state lottery was started in 1967, the total revenue from sales was only Rs 20 lakh. The profit alone touched Rs 625.74 crore in 2009-2010 and Rs 557.69 crore in 2010-2011. The department now boasts of more than 35,000 authorized agents and over 100,000 retail sellers. [16]
The Kerala lottery was created as a mean to generate revenue to help the poor and the needy belonging to marginalized sections of society. [17] The profits from state lotteries sponsor several welfare programs. One of these is the Karunya Benevolent Fund Scheme that provides financial assistance to under-privileged people suffering from acute ailments like Cancer, Haemophilia, Kidney and Heart diseases and for Palliative Care. [18]
Regardless of the different regulations of the states, it is required to be at least 18 years old to be allowed to play the lottery, no matter whether online or offline, in India.
On January 8, 2003, the state government of Tamil Nadu banned the sale of all forms of lottery by agencies from and outside the state. [19] This ban has been upheld by successive governments. But it has been withdrawn and for the last few years Kerala and all other State Government lotteries are being sold in Tamil Nadu.
In the states where lotteries are banned some players search for online alternatives giving way for online lotteries in India. [20] Legislation is different from state to state where states like Punjab have legislation for online lotteries and states like Bihar have set up explicit bans on all lotteries. [21]
The Shrine Temple which gained permission of the public[ clarification needed ] in the Edo Era had released a rush for promotion, but it was prohibited by Meiji's Penal Code (a theory[ clarification needed ] that was in the Cabinet Order of 1869). But in dark urban areas where they were illegal, lotteries were widespread.
On July 16, 1945 during the Second World War, the country would release "winning cards" in order to finance war expenses. As a result of lack of goods, prize prizes (cigarettes and kanakin (cotton calico)) were popularized but lost before the draw. After the war in 1948, local Japanese governments were permitted to release lottery tickets by the voting warrant certificate method.[ clarification needed ]
In Japan's law, it is forbidden to purchase lottery tickets issued by foreign governments and foreign organizations in Japan that originated from other countries (As read in Japan's Criminal Code Article 187, Paragraph 3, Lucky Ticket Accepted Crime), The advertisement such as lottery release municipalities, trust banks and the Japan Lottery Association also has written to that effect.[ clarification needed ]
The first French lottery was created by King Francis I in or around 1505. After that first attempt, lotteries were forbidden for two centuries. They reappeared at the end of the 17th century, as a "public lottery" for the Paris municipality (called Loterie de L'Hotel de Ville) and as "private" ones for religious orders, mostly for nuns in convents.
Lotteries quickly became one of the most important resources for religious congregations in the 18th century, and helped to build or rebuild about 15 churches in Paris, including St. Sulpice and Le Panthéon. At the beginning of the century, the King avoided having to fund religious orders by giving them the right to run lotteries, but the amounts generated became so large that the second part of the century turned into a struggle between the monarchy and the Church for control of the lotteries. In 1774, the monarchy—specifically Madame de Pompadour—founded the Loterie de L'École Militaire to buy what is called today the Champ de Mars in Paris, and build a military academy that Napoleon Bonaparte would later attend; they also banned all other lotteries, with 3 or 4 minor exceptions. This lottery became known a few years later as the Loterie Royale de France. Just before the French Revolution in 1789, the revenues from La Lotteries Royale de France were equivalent to between 5 and 7% of total French revenues.
There have also been reports of lotteries regarding the mass guillotine executions in France. It has been said that a number was attached to the head of each person to be executed and then after all the executions, the executioner would pull out one head and the people with the number that matched the one on the head were awarded prizes (usually small ones); each number was 3-to-5 digits long.
Throughout the 18th century, philosophers like Voltaire as well as some bishops complained that lotteries exploit the poor. This subject has generated much oral and written debate over the morality of the lottery. All lotteries (including state lotteries) were frowned upon by idealists of the French Revolution, who viewed them as a method used by the rich for cheating the poor out of their wages.
The Lottery reappeared again in 1936, called lotto, when socialists needed to increase state revenue. Since that time, La Française des Jeux (government owned) has had a monopoly on most of the games in France, including the lotteries.
The German national lottery runs Lotto 6aus49, [22] Super6, Spiel77, and Glücksspirale. The highest jackpot ever won was a Eurojackpot drawing on 14 October 2016 of €90 million. [23]
On 20 September 2005 a primary school boy in Italy won the equivalent of £27.6 million in the Italian national lottery. Although children are not allowed to gamble under Italian law, children are allowed to play the lottery. [24]
The International Lottery in Liechtenstein Foundation (ILLF) is a government-authorized and state-controlled charitable foundation that operates Internet lotteries. The ILLF pioneered Internet gaming, having launched the web's first online lottery, PLUS Lotto, in 1995 and processed the first online gaming transaction ever. The ILLF also introduced the first instant scratchcard games on the Internet during this time. The ILLF supports charitable projects and organizations domestically and internationally.
The ILLF operates many websites, referred to as the ILLF brands. Combined, these brands offer an array of games for sale.
Lottery winnings are not taxed in Liechtenstein.
The annual Spanish Christmas Lottery is considered the world's largest lottery, as its prize pool averages €2.4 billion. [25] [26] It is managed by the state-owned Loterías y Apuestas del Estado. Its top prize/jackpot of €4 million is awarded to—not split by—up to 180 winning tickets.
The National Lottery was established in 1994 and is regulated by the Gambling Commission. In 2004, its operator Camelot Group launched EuroMillions for players in the UK, France, and Spain. Now, it is played on a pan-European basis. A privately run lottery called The Health Lottery launched in 2011.
In Canada prior to 1967 buying a ticket on the Irish Sweepstakes was illegal. In that year the federal Liberal government introduced a special law (an Omnibus Bill) intended to bring up-to-date a number of obsolete laws. Pierre Trudeau, the Minister of Justice at that time, sponsored the bill. On September 12, 1967, Mr. Trudeau announced that his government would insert an amendment concerning lotteries.
Even while the Omnibus Bill was still being written, Montreal mayor Jean Drapeau, trying to recover some of the money spent on the World's Fair and the new subway system, announced a "voluntary tax". For a $2.00 "donation" a player would be eligible to participate in a draw with a grand prize of $100,000. According to Drapeau, this "tax" was not a lottery for two reasons. The prizes were given out in the form of silver bars, not money, and the "competitors" chosen in a drawing would have to reply correctly to four questions about Montreal during a second draw. That competition would determine the value of the prize that the winner would win. The replies to the questions were printed on the back of the ticket and therefore the questions would not cause any undue problems. The inaugural draw was held on May 27, 1968.
There were debates in Ottawa and Quebec City about the legality of this 'voluntary tax'. The Minister of Justice alleged it was a lottery. Montreal's mayor replied that it did not contravene the federal law. While everyone awaited the verdict, the monthly draws went off without a hitch. Players from all over Canada, the United States, Europe, and Asia participated.
On September 14, 1968 the Quebec Appeal Court declared Mayor Drapeau's "voluntary tax" illegal. However, the municipal authorities did not give up the struggle; the Council announced in November that the City would appeal this decision to the Supreme Court.
As the debate over legalities continued, sales dropped significantly, because many people did not want to participate in anything illegal. Despite offers of new prizes the revenue continued to drop monthly, and by the nineteenth and final draw, was only a little over $800 000.
On December 23, 1969 an amendment was made to the Canada's Criminal Code, allowing a provincial government to legally operate lottery systems.
The first provincial lottery in Canada was Quebec's Inter-Loto in 1970. Other provinces and regions introduced their own lotteries through the 1970s, and the federal government ran Loto Canada (originally the Olympic Lottery) for several years starting in the late 1970s to help recoup the expenses of the 1976 Summer Olympics. Lottery wins are generally not subject to Canadian tax, but may be taxable in other jurisdictions, depending on the residency of the winner. [27]
Today, Canada has four nationwide lotteries: Lotto 6/49, Lotto Max (which replaced Lotto Super 7 in September 2009), Daily Grand, and Millionaire Life. These games are administered by the Interprovincial Lottery Corporation, which is a consortium of the five regional lottery commissions owned by their respective provincial/territorial governments: Atlantic Lottery Corporation (New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador), Loto-Québec (Quebec), Ontario Lottery and Gaming Corporation (Ontario), Western Canada Lottery Corporation (Manitoba, Saskatchewan, Alberta, Yukon, Northwest Territories, Nunavut), and British Columbia Lottery Corporation (British Columbia).
48% of total sales are allocated for the jackpot. The remaining 52% is used for administration and given to charity.[ citation needed ]
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. [28] 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 US Virgin Islands;
The first modern US multi-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. [29] 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. (Cashola ended May 2011.)
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.
In Australia, lotteries operators are licensed at a state or territory level, and include both state government-owned and private sector companies.
The first lottery game in Australia took place in the 1880s in Sydney, the capital of the country. It was a private sweepstakes that was quickly prohibited, despite being moved to other areas such as Queensland and Victoria. [30] In 1916, the Australian government started their own lottery, named the 'Golden Casket Art Union', with the intention of raising money for charities and projects. Its first draw is credited with raising funds for veterans of World War One. [31]
Lotteries in Australia are now operated by Tatts Group under Government licence in each State or Territory with the exception of Western Australia.
Australia also supports online lottery sales with two licensed re-sellers, Netlotto Pty Ltd and Jumbo Interactive which sell Australian lottery products through their websites.
Lotteries in New Zealand are controlled by the Government through an autonomous Crown entity, Lotto New Zealand (formally the New Zealand Lotteries Commission). Lottery profits are distributed by the New Zealand Lottery Grants Board directly to charities and community organizations. Sport and Recreation New Zealand, Creative New Zealand and the New Zealand Film Commission are statutory bodies that operate autonomously in distributing their allocations from the Lottery Grants Board.
Lotto New Zealand was formed in 1987 and replaced New Zealand's original national lotteries, the Art Union and Golden Kiwi. Lotto has four games: the Lotto (including Powerball and Strike), Keno, Bullseye, and Instant Kiwi scratch card games.
Lottery winnings are not taxed in New Zealand.
A lottery is a form of gambling that involves the drawing of numbers at random for a prize. Some governments outlaw lotteries, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of regulation of lottery by governments. The most common regulations are prohibition of sale to minors and licensing of ticket vendors. Although lotteries were common in the United States and some other countries during the 19th century, by the beginning of the 20th century, most forms of gambling, including lotteries and sweepstakes, were illegal in the U.S. and most of Europe as well as many other countries. This remained so until well after World War II. In the 1960s, casinos and lotteries began to re-appear throughout the world as a means for governments to raise revenue without raising taxes.
This is a list of the largest jackpots, or prizes, awarded in various lotteries.
The Georgia Lottery Corporation, known as the Georgia Lottery, is overseen by the government of Georgia, United States. Headquartered in Atlanta, the lottery takes in over US$1 billion yearly. By law, half of the money goes to prizes, one-third to education, and the remainder to operating and marketing the lottery. The education money funds the HOPE Scholarship, and has become a successful model for other lotteries, including the South Carolina Education Lottery.
The Pennsylvania Lottery is a lottery operated by the Commonwealth of Pennsylvania. It was created by the Pennsylvania General Assembly on August 26, 1971; two months later, Henry Kaplan was appointed as its first executive director. The Pennsylvania Lottery sold its first tickets on March 7, 1972 and drew its first numbers on March 15, 1972.
Lotto 6/49 is one of three national lottery games in Canada. Launched on June 12, 1982, Lotto 6/49 was the first nationwide Canadian lottery game to allow players to choose their own numbers. Previous national games, such as the Olympic Lottery, Loto Canada and Superloto used pre-printed numbers on tickets. Lotto 6/49 led to the gradual phase-out of that type of lottery game in Canada.
The California State Lottery began in October 1985 after voters authorized it in Proposition 37, the California State Lottery Act of 1984. It offers a range of games including number draws, scratchcards and a mock horse race. The earnings provide supplementary funding for public education.
Lotteries in Australia include various lottery related products licensed by The Lottery Corporation, The Lottery Office and Lotterywest Australian lottery companies. Lotteries operators are licensed at a state or territory level, and include both state government-owned, not-for-profit and private sector companies. Most major Lotteries have now moved into the online marketplace.
Lotto Super 7 was a national lottery game in Canada, operated by the Interprovincial Lottery Corporation (ILC). It was launched on June 10, 1994, and its last draw was on September 18, 2009.
The New York Lottery is the state-operated lottery in the US state of New York that began in 1967. As part of the New York State Gaming Commission, it provides revenue for public education and is based in Schenectady.
The New Hampshire Lottery was established in 1964, making it the third-oldest lottery in the United States, and the oldest in the contiguous United States. New Hampshire's lottery games include Lucky for Life, Mega Millions, Powerball, Tri-State Megabucks Plus, and numerous scratch tickets. All New Hampshire Lottery games require players to be at least 18 years old.
The West Virginia Lottery is run by the government of West Virginia. It was established in 1984 via a voter referendum. It is a charter member of the Multi-State Lottery Association (MUSL). The Lottery offers games such as Lotto America, Powerball, Mega Millions, and scratch tickets. West Virginia has reinterpreted the amendment to its Constitution that permitted its lottery to include casinos, and thus the West Virginia Lottery Commission also regulates slot machines, which are marketed as "video lottery" and available at several hundred businesses; and five "lottery table games" casinos.
The Connecticut Lottery Corporation, also called the CT Lottery, is the official lottery in Connecticut. It was created in 1971 by then-Gov. Thomas Meskill, who signed Public Act No. 865. The first tickets were sold on February 15, 1972. The Connecticut Lottery offers several in-house drawing games; Connecticut also participates in Mega Millions and Powerball; each are played in 44 states, the District of Columbia, and the U.S. Virgin Islands.
The Delaware Lottery is run by the government of Delaware. Its creation was authorized by the state legislature on May 31, 1974. Its "traditional" games include Play 3, Play 4, Multi-Win Lotto, Lucky For Life, Lotto America, Mega Millions, and Powerball. Delaware also offers Keno, sports betting, and video lottery.
The Michigan Lottery was initiated under the authority of Public Act 239 in 1972, and collects funds to support Michigan’s public school system.
The Missouri Lottery is the state-run lottery in Missouri. It is a charter member of the Multi-State Lottery Association (MUSL). As of 2022, the lottery offers Powerball, Mega Millions, Cash4Life, Lotto, Show Me Cash, Pick 4, Pick 3, Cash Pop, Club Keno, scratchers, and pull-tabs. The minimum age to buy a ticket is 18.
The Ohio Lottery is a state lottery run by the Ohio Lottery Commission. Its games consist of scratch tickets; Pick 3, Pick 4, Pick 5 ; Rolling Cash 5, Classic Lotto, Keno, Lucky for Life, Mega Millions, and Powerball.
The Rhode Island Lottery is run by the government of Rhode Island. The modern form of the Rhode Island Lottery was inaugurated in 1974, following a constitutional amendment passed in 1973. It is a charter member of the Multi-State Lottery Association (MUSL). Rhode Island Lottery games include Mega Millions, Powerball, Wild Money, Keno, and scratch tickets. The Rhode Island Lottery also offers online lottery games and oversees and regulates video lottery as well as sports betting.
The Illinois State Lottery is an American lottery for the U.S. state of Illinois, operated by Allwyn Illinois.
International Lottery in Liechtenstein Foundation (ILLF) was a government authorised and state controlled charitable foundation that operated Internet lotteries. The foundation pioneered Internet gaming, having launched the web's first online lottery, PLUS Lotto, in 1995 and processed the first online gaming transaction ever. It supported charitable causes in Liechtenstein, many of which support projects in poorer nations internationally. ILLF filed for bankruptcy in September 2011.