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What States Don’t Have a Lottery (Reasons and Alternatives)

The United States is home to the biggest lotteries worldwide, such as the US Powerball and the Mega Millions. However, not every state offers a lottery. As of 2024, five states – Alabama, Alaska, Hawaii, Nevada, and Utah—do not have their state lotteries. 

In this article, we’ll look into why these states have chosen not to establish lotteries and discuss other options that residents in these areas might have for playing games of chance.

Key Highlights:

  • Alabama, Alaska, Hawaii, Nevada, and Utah are the five states without a state lottery.
  • Their reasons for not creating a lottery include religious beliefs, cultural concerns, economic priorities, and the presence of alternative gambling options.
  • The states without a lottery miss out on millions of dollars in revenue.
  • If your state does not have a lottery, you can participate in international online lottery websites such as theLotter, Lottofy, and LottoGo.
  • You get small winnings paid directly to your online lottery accounts, while jackpots require in-person verification.

What States Don’t Have a Lottery?

Many states in the US chose to have a lottery mainly to raise money that helps pay for important public services such as schools, roads, and social programs. On the other hand, the states that have decided not to have a lottery believe the negatives outweigh the benefits. Here’s a list of the states that do not offer any type of state lottery.

Alabama

The debate about having a lottery in Alabama has been going on for a long time—over 120 years. Despite various attempts to create a lottery, Alabama has consistently rejected the idea. This all began back in 1901 when the state constitution made all forms of gambling illegal. This decision is due to Alabama’s strong conservative values, heavily influenced by groups like the Southern Baptist Convention and other evangelical Christian organizations, which hold significant power in state politics. Their beliefs have shaped public opinion against the lottery for many years.

In 1998, Governor Don Siegelman pushed to start a state lottery to help fund education in Alabama. However, he faced strong opposition from influential conservatives who argued that the lottery could hurt low-income families.

Over the years, discussions about the lottery have continued in the Alabama House of Representatives. The benefits of having a lottery are becoming harder to ignore, and some lawmakers are starting to support the idea. The last proposal for a lottery stirred up quite a debate and only lost by one vote. It’s possible that Alabama could have a state lottery in the future. Still, residents can only play in lotteries from other states or on international lottery websites.

Alaska

Alaska doesn’t have a lottery and the reason is simple, they claim to not need the extra revenue that the lottery brings. Alaska is one of the few states in the US without a state income or sales tax, thanks largely to revenue from its oil resources. They also worry that they wouldn’t make much money from it because of their low population. The US Census Bureau reports that only about 740,133 people live there, which is low compared to other states.

Even though the idea of a state lottery has come up since as far back as the 1980s, the fact that Alaska makes so much oil money from the Prudhoe Bay oil field means the lawmakers do not see the need for the extra revenue from the lottery.

However, in the early 2000s, the socio-economic situation began to change due to concerns about fluctuating oil prices, the state’s dependency on oil revenues, and the environmental challenges of the oil business. As a result, several proposals for a state lottery were put forward. Still, the legislators refused to sign off on it for fear that it might cause gambling addiction among Alaskans.

The closest they came to having a successful proposal was in 2017. However, lawmakers argued that a lottery might not yield the same level of financial benefits as the one seen in more populated states. Alaska has a population of only 730,000, making it difficult to profit from the lottery like other states. They argued that the logistics and administrative costs of running a lottery would likely outweigh the benefits given Alaska’s remote geography.

While Alaska does not have a lottery at the moment, economic pressures and changing demographics could eventually cause an attitude shift and convince lawmakers to approve the bill later. Pending the time before they get their own lottery, Alaskans can play the lottery on online lottery sites.

Hawaii

More known for its tourism industry, Hawaii does not have a state lottery, and they have consistently resisted talks to start a state lottery. Hawaii maintains a strict no-lottery policy due to its goal to maintain a family-oriented atmosphere in the state. The decision-makers in the state are concerned that introducing the lottery could lead to social problems like crime, addiction, and exploitation of vulnerable people. Also, they fear that the lottery will change the state’s unique cultural identity and disrupt the social cohesion that defines island life.

Serious talks about the lottery started in 1994 when Hawaii faced significant budget cuts. However, proposals failed when strong opposition came from religious groups, social organizers, and influential members of the state legislators who feared the social consequences of legalized gambling.

In 2002, the then-governor, Ben Cayetano, proposed a state lottery to raise money for public schools. But the Hawaii State legislator shut it down saying any economic benefits will not make up for the social consequences. Still, the Hawaii State legislature refuses to bulge.

The debate continues, and it remains unlikely that Hawaii will establish a state lottery soon. Hawaii remains firm in its commitment to maintaining a gambling-free environment. But if Hawaiians want to play the game, they could enjoy top lottery games like Powerball, Mega Millions, and EuroJackpot.

Nevada

It is somehow impossible to believe that Nevada doesn’t have a state lottery till now despite its reputation as the gambling capital of the United States and home to Las Vegas, where there are casinos and poker almost everywhere. The reason is simple – their casino industry is doing so well that they see no reason for the lottery. Casino owners fear introducing a state lottery will divert a portion of consumer spending from casino games. For this reason, they are reluctant to support any proposal for a state lottery. To put things into perspective, the casino industry brought in around $10.92 billion in revenue in 2023 alone.

The first talks for a state lottery started in 1975. However, the casino industry fought against it, arguing that it would disrupt the thriving casino industry. Top players in the casino industry, like Howard Hughes and Steve Wynn, who had significant influence over the state legislature, also exercised their influence to ensure there was no competition in the casino industry.

2013 Democratic Assemblyman Cameron Miller raised a motion to eliminate lottery prohibition in the state constitution. This motion has passed the first session but needs two more sessions before a state lottery can happen.

It will take a while before they will see a state lottery. However, Nevada players can access top games on online lottery websites.

Utah

Utah has no state lottery, and the reason is due to its cultural and religious identity. For starters, they are one of the most conservative states in the US with a deeply religious background from Mormon pioneers of the Church of Jesus Christ of Latter-day Saints (LDS Church), who set up base here in 1847. The LDS Church opposes gambling of all forms. They considered it harmful and morally wrong. This opposition was translated into Utah’s legal and cultural framework. With 60% of the population Mormon, they didn’t play the lottery much.

Even when many states turned to the lottery, Utah remained steadfast in its dedication to keeping the lottery out. However, leaders and decision-makers in the states are already becoming divided over this decision. Some argue it can generate millions in revenue for education, infrastructure, and public services. While others say the social costs of gambling outweigh any financial benefit.

Right now, church leaders continue to speak out against the lottery to remind them of the adverse effects of the lottery. In February 2024, Rep. Kera Birkeland raised a bill to let voters decide whether they want the lottery, but it wasn’t successful.

Maybe soon in the future, they will be able to convince the lawmakers of the benefits of the lottery. Until then, players in Utah can enjoy games on online lottery websites.

Can You Buy Lottery Tickets Online from Another State?

Suppose your state doesn’t have its lottery. In that case, you might still be able to participate in online lotteries offered by other states. This way, you can enjoy the game and not have the lottery laws in your state change.

Here are two ways to play the lottery online from another state.

International Online Lottery Websites: Even when your state doesn’t have the lottery, you can enjoy lotteries even beyond the borders of your country by joining an online lottery website. All you have to do is create an account, complete the registration, make a first deposit, and the platform will connect you to the biggest games worldwide. Top lottery sites to play on include theLotter, Lotto Agent, LottoGo, Lottofy, and Jackpot.com.

State Lottery: Some states allow non-residents to participate in their lottery games. You can do this by traveling to the state to buy the lottery in-store or visiting their online lottery website. But it is worth mentioning that you might not enjoy their full online lottery service unless you play the game within the country’s borders.

What Happens if You Win the Lottery in a Different State?

If you win the lottery in a different state, you will have to follow the rules of the state to claim your prize. There are specific procedures you will need to follow to claim your prize, depending on whether you play online or at a retail store.

Feature Online Play Retail Store
Small Prizes The lottery website will credit it to your online account, which can be transferred to your bank account easily. You can claim it the same day; the payout may be in cash or check, depending on the amount.
Large Prizes You must visit the lottery office for identity verification and additional security measures. You must visit their office to provide identification, fill out forms, and comply with terms and conditions.
Required Documents Government-issued photo ID, possibly a Social Security card. Government-issued photo ID, possibly a Social Security card, and additional forms.
Payout Speed Small wins are credited instantly to your account. Small wins are typically paid immediately; larger wins may take several days to process.
Convenience You get your winnings online. There is no need to travel for small prizes. Immediate payout for smaller prizes requires visiting a retail location.
Taxation You will pay the federal and state taxes for the state where you played the lottery. There might also be local taxes depending on the lottery rules. Federal, state, and local taxes will be charged when you play at a retail store in a different state.

Conclusion

Many states in the US make a lot of money from lotteries. Still, Alabama, Alaska, Hawaii, Nevada, and Utah don’t have them. Their decision not to participate is influenced by things like religious beliefs, economic reasons, and existing gambling options. If you live in these states, you can still have fun or try to make money through alternative online lottery websites like theLotter, Lotto Agent, and Lottofy.

FAQs

Can I buy lottery tickets in a state that doesn’t have a lottery?

You can get lottery tickets even if you reside in a state that doesn’t have a lottery by playing on online lottery websites like theLotter, Lotto Agent, Lottofy, WinTrillions, and LottoKings. These sites connect you to games from all over the world.

What is the difference between state lotteries and multi-state lotteries?

State lotteries are operated independently by individual states, offering games like scratch-offs or draw-based games, with revenue typically funding state programs such as education. Examples include Texas Lotto, Missouri Pick 3, and Texas Two Step. In contrast, multi-state lotteries, like Powerball or Mega Millions, involve multiple states pooling resources to offer larger jackpots, attracting more participants across state lines. Due to their massive prize pools, multi-state lotteries have higher stakes and broader appeal.

Do states without lotteries offer any other forms of gambling?

Yes, many states without lotteries allow other forms of gambling, such as casinos, horse racing, or online gaming in some cases. These options vary by state, often shaped by local laws, tribal agreements, or cultural attitudes toward gambling. For instance, Nevada is the gambling capital of the United States, yet they do not have a state lottery.

Do you have to be a state resident to win the lottery?

You do not have to be a state resident to win the lottery. However, you must buy lottery tickets in the states that must be purchased within the state where the lottery operates, and winners must claim prizes according to that state’s rules. Taxes may differ for non-residents, depending on state and federal regulations.

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