Aside from the state-run online lottery website, a handful of private businesses are offering lottery games through apps like Jackpocket. These apps allow users to buy tickets, create pools, follow drawings and collect prize money from the comfort of their phones – for a fee. They work as middlemen, interacting with retailers and the lottery to make it all happen. The District of Columbia recently became the latest jurisdiction to offer a regulated lottery app, rushing out emergency rules and launching its site in December 2020.
The majority of states and territories offer multi-state lotteries that allow players from different states to purchase tickets in one pool, with the top prize varying between a few million dollars and a few billion. Mega Millions and Powerball are the two largest multi-state lotteries, with jackpots that have reached well over a billion dollars. These lotteries are governed by the Multi-State Lottery Association (MUSL), and each participating state must meet certain criteria in order to be part of the pool.
Several other states have opted to launch their own branded lottery products. These state-branded websites feature a full range of state-specific lottery games, including instant win games and keno. These sites also offer a variety of payment methods, including ACH/eCheck and PayPal. Other payment options include debit cards, credit cards and PayNearMe. Some states also offer mobile lottery apps that let players download games and purchase tickets from a single app.
Some concerns have been raised about whether online lottery products will cannibalize traditional lottery sales, but the data so far shows that this is not the case. In fact, traditional lottery sales have continued to grow in states that offer an online lottery. Pennsylvania iLottery, which launched in 2018, saw traditional ticket sales increase by more than $4 billion the year after it started offering its online lottery product.
In addition to selling individual tickets, many state lotteries also offer online lottery subscriptions that let players automatically purchase entries into a set number of drawings on a recurring basis. Most of these services also allow players to manage their subscriptions, check results and purchase tickets from a range of participating retailers. Some third-party lottery courier services offer a hybrid form of online lottery, taking orders through an app and buying tickets in person from authorized retailers on behalf of the player.
A portion of each lottery ticket purchase goes to support state programs and organizations, charities, and other causes. For example, Illinois directs a quarter of its lottery proceeds towards in-state schools, Special Olympics, and homelessness prevention. However, it is important to note that gambling addiction is real and can be serious. If you or a loved one has a gambling problem, help is available. For confidential support, call 1-800-GAMBLER or visit SAMHSA’s National Helpline website for resources that include a treatment center locator and anonymous chat. In addition, most state-regulated lottery websites provide links to Gamblers Anonymous, a nationwide organization that provides free and confidential treatment for gambling addiction.