Lotteries are a popular form of gambling in many parts of the world. They offer the chance for participants to win large sums of money in prize draws that are based purely on chance. While some consider lotteries to be a harmless form of entertainment, others view them as an insidious type of gambling that disproportionately targets the poor. As a result, the legal status of lotteries varies considerably around the world. Some countries have a national lottery and allow other lotteries to operate, some only permit a state-run lottery, while others ban lotteries completely.
Countries Where Lotteries Are Legal
Most developed countries allow some form of lottery, albeit with restrictions and regulations on how they operate. Some of the countries where lotteries are legal include:
United States
In the United States, lotteries are legal in 44 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Lotteries are banned in Alabama, Alaska, Hawaii, Mississippi, Nevada, and Utah. The first modern government-run US lottery was established in Puerto Rico in 1934. New Hampshire introduced the first state lottery in the continental United States in 1964. In South Dakota, the lottery was legalized in 2016 after being banned for more than a century. The largest lotteries in the US are Mega Millions and Powerball, which are offered in nearly all states that have lotteries. Lotteries in the US raised over $80 billion for government programs between 1964 and 2014.
Canada
Lotteries are legal throughout Canada, with many provinces operating their own provincial lotteries as well as participating in national lotteries. Every Canadian province except Alberta has its own lottery corporation. The main national lottery is Lotto 649, launched in 1982. Other national games include Lotto Max and Daily Grand. Lotteries are run by provincial Crown corporations and the revenue goes to supporting government programs and charities. From 1982 to 2018, Canadian lotteries generated over $250 billion in total revenue.
United Kingdom
The UK National Lottery was established in 1994 and is regulated by the government. It operates various prize draws and its games include Lotto, EuroMillions, and Thunderball. The UK National Lottery raises money for good causes and has awarded over £71 billion in prizes since its inception. Around 95% of adults in the UK play the lottery regularly. Private lotteries and raffles can be legally held to raise money for charities or causes but must be licensed and regulated.
Australia
Lotteries are legal across all Australian states and territories. Most of the lotteries are owned and operated by the government Public Lotteries. The biggest lottery in the country is Saturday Lotto, created in 1979. Other major games include Monday and Wednesday Lotto, Powerball, Oz Lotto, Set for Life, Lucky Lotteries, and Instant Scratch-Its.Lotteries in Australia are a popular form of gambling and entertainment, with over 70% of adults purchasing lottery tickets. The revenues help fund hospitals, health services, sports, the arts, and other community projects across the country.
China
The Chinese government permits lotteries nationwide, usually for welfare purposes or to fund major projects. The China Welfare Lottery and China Sports Lottery were established in the 1980s and are the two state-franchised lottery operators under the Ministry of Civil Affairs and the General Administration of Sport. Lottery sales in China reached $75.5 billion in 2019, making it the largest lottery market in the world. Since 2009, lotteries in China have helped raise over 1.42 trillion yuan ($220 billion) for social welfare programs and public wellbeing initiatives across the country.
India
Lotteries are legal in most parts of India. The first modern Indian lottery was established in Kerala in 1967. Today, 13 states regulate and conduct lotteries within their jurisdiction while most other states have imposed partial or complete bans. The Kerala State Lotteries is among the largest lotteries in the country and offers seven weekly lotteries as well as six bumper draws. Revenue generated from Indian state lotteries helps fund public infrastructure, welfare initiatives and more. However, some states are planning to ban lotteries on concerns they prey on the poor and vulnerable.
Japan
Lotteries have been legal in Japan for centuries. The government allows public or charitable lotteries that donate part of proceeds to a worthy cause. Takarakuji are national lottery draws operated by the government since the 1700s to raise funds for public works projects. More recently, in October 1945, the first modern public lottery was established to raise funds for social welfare services. Today, lottery tickets can be purchased from licensed vendors, with national lottery draws held daily. Revenue from ticket sales supports education, sports, culture and community programs across Japan. Private lotteries require a special permit to operate.
South Korea
In South Korea, the lottery is managed by the Korean Lottery Commission, established in 1969. Lotto is the most popular lottery game, with weekly draws and jackpots up to 22 billion won. Other Korean lottery games include Lotto 5/45, Lotto 6/45 and Lotto 6/42. Proceeds from ticket sales support a range of causes including the promotion of traditional Korean culture, youth training programs, regional development and more. Private lotteries are prohibited in South Korea. Over 70% of Korean adults play the lottery regularly.
Philippines
Lotteries and sweepstakes are legal in the Philippines and regulated by the Philippine Charity Sweepstakes Office (PCSO). The PCSO operates the national lottery draws and all profits are meant to fund health and welfare programs across the country. Major lottery games include Lotto 6/58, Lotto 6/55, Suertres, EZ2, Scratch-It and Keno. Smaller local sweepstakes games known as jueteng are popular but operate illegally as an underground lottery. Around 60% of Filipinos buy lottery tickets, spending an estimated $10 billion annually on legal and illegal lotteries.
Singapore
In Singapore, lottery operations are run by the legal gambling operator Singapore Pools. It was formed in 1968 and operates lottery games such as Toto and 4D. Singapore also allows sweepstakes and lucky draws to raise funds for charity events and causes if organizers obtain a permit. While legal gambling is restricted to a few outlets, illegal gambling and lotteries are common, especially online and among foreign workers. Globally, Singapore is one of the world leaders in per capita lottery spending, with adults spending around US$400 annually on lottery tickets.
Mexico
The National Lottery of Mexico was established in 1770 and is the oldest continuously operating lottery in the world. Today, the national lottery is run by Pronósticos para la Asistencia Pública, a government agency. Revenue goes to providing healthcare, assistance to the elderly, community development, and more. Other smaller lottery games are operated by private companies. Lotteries are popular across Mexico and account for about 1% of Mexico’s GDP. Around 70% of Mexican adults play the lottery regularly.
Argentina
Lotteries are legal and popular across Argentina. The national lottery Loteria Nacional has operated since 1893 with proceeds funding the national treasury. Most provinces also have their own lottery. The most popular game is Quiniela, a football pools game. Private operators can apply for licenses to run lotteries in each province. Online lotteries and lottery betting are also legal and regulated. In Buenos Aires, an estimated 75% of residents play the lottery regularly. Lotteries account for around 0.3% of Argentina’s GDP.
Malaysia
Lotteries are legal in Malaysia and regulated by individual states. Some states operate state lotteries while others allow lottery ticket sales from private companies. Major lottery operators include Magnum 4D, Damacai 3D and Sports Toto. Lotteries remain popular as a form of gambling despite being against Islamic sharia law and concerns about gambling addiction. The national government also runs periodic draws like Malaysia’s 50th independence day lottery. Average monthly spending on lotteries is around RM300 million.
Sweden
Sweden has a long history of gambling and lotteries regulated by the government. Lotteries in Sweden are run by Svenska Spel, the state gaming operator. It runs games such as Lotto, Keno, Joker, Viking Lotto and EuroJackpot. Sweden also takes part in the EuroMillions lottery. Profits from the lottery are used for culture, sports, youth activities, social welfare and other causes across Sweden. Lottery tickets can only be purchased in person from authorized Svenska Spel retailers. Online sales and commercial lotteries are not permitted.
South Africa
South Africa has a state-licensed lottery called the National Lottery, established in 2000. It is run by Ithuba, which operates games like Lotto, PowerBall, Daily Lotto, and instant win scratch cards. Only good causes can receive funds from the National Lottery. Licensed casinos and bookmakers can also operate lottery games. Most South Africans play the lottery, with average spending around R80 a month. Total lottery revenue in South Africa reached R6 billion in 2021.
Netherlands
The Netherlands has a long tradition of lottery games dating back to 1726. Today, the national lottery is run by the State Lottery as a state monopoly. It operates Lotto, Eurojackpot and instant lottery games. Profits fund sports, recreation, culture, welfare and other causes. Private lotteries are prohibited but fundraising lotteries by charities and non-profits are allowed under permit. About 50% of Dutch adults play the lottery. Total lottery revenue was approximately €495 million in 2020.
Countries Where Lotteries Are Illegal or Restricted
While most countries allow lotteries, subject to strict controls, some jurisdictions outlaw them entirely. Lotteries are banned in the following countries:
Albania
All forms of gambling including lotteries are completely illegal in Albania. No state or private lotteries are permitted. Lottery bans have been in place in Albania since the early 20th century due to strict anti-gambling laws. However, Albanian citizens still participate in foreign lotteries informally. Proposals to legalize gambling and lotteries have not succeeded due to public opposition on religious and social grounds.
Cambodia
Cambodia prohibits all forms of gambling including lotteries, although informal private lotteries still occur illegally. The government passed the Law on the Suppression of Gambling in 1996, banning casinos and gambling nationwide. The ban aims to protect citizens from addiction and criminal activity associated with gambling. Cambodia also closed its borders to foreign gambling operators. Some exemptions allow charity raffles or lotteries with official authorization.
Thailand
Lotteries are illegal in Thailand as part of wider anti-gambling legislation. The Royal Thai Government passed the Gambling Act in 1935 banning almost all types of wagering and betting. The law criminalized the operation of lotteries with penalties of fines and imprisonment. However, informal underground lotteries remain popular, along with Thai gamblers taking part in lotteries from neighboring countries. Public calls to legalize lotteries have increased in recent years.
United Arab Emirates
The United Arab Emirates outlaws all forms of gambling including lotteries, except in a few restricted areas. Only the Dubai International Financial Centre permits gambling within strict parameters. Attempting to play the lottery anywhere else in the UAE can lead to criminal penalties. However, some UAE citizens still take part in lotteries like Abu Dhabi’s Big Ticket raffle draw, hoping to win luxury cars and large cash prizes.
Pakistan
Pakistan has enforced a complete ban on lotteries and all other forms of gambling since 1977. The ban is derived from Pakistan’s Islamic sharia law prohibiting maisar, meaning gambling or games of chance. Lotteries are viewed as a type of gambling, and therefore unlawful. No organizations are legally allowed to run any lottery activities. However, some underground lotteries still persist. Proposals to permit lotteries to fund dams, universities and other public infrastructure have not succeeded.
Afghanistan
Afghanistan strictly prohibits all forms of gambling and games of chance under Islamic law, which classifies gambling as forbidden (haram). Lotteries are viewed as a type of gambling and therefore illegal. The Afghan Penal Code criminalizes owning or operating a gambling establishment with punishments of fines or imprisonment. However, informal lotteries may exist despite the nationwide ban.
North Korea
Gambling and games of chance are illegal in North Korea, with no lotteries permitted. Law strictly prohibits North Korean citizens from engaging in gambling activities like lotteries under the criminal code. Offenses can lead to forced labor sentences. Exceptions allow some gambling by foreigners in designated special economic zones. The ban reflects North Korea’s tight control of its economy and society.
Countries With State-Run Lotteries
Many countries allow lotteries but only permit state-run or state-licensed lottery operations. Governments implement this monopoly structure to ensure control and use lottery profits for public budgets. Countries with only state-run lotteries include:
Cuba
Cuba established a national lottery run by the government in 1867. The lottery has financed public works, social welfare, and government programs for over 150 years. Today, the Cuban national lottery operates popular draws like El Gordo de Navidad (the Fat One of Christmas). No other public or private lotteries are permitted in Cuba’s communist system. Lottery revenue contributes around 12% of Cuba’s national budget.
Iran
The first Iranian national lottery began in 1968. Today, the Management and Planning Organization of Iran administers lottery games like Pooshak to fund national development programs. Lotteries are deemed acceptable under Iranian law if managed by the state. Private and unlicensed lotteries are illegal as unauthorized gambling. Only adults can purchase lottery tickets.
Vietnam
Vietnam has banned all private lotteries but permits government-run lottery activities. The Ministry of Finance operates lottery games through the Vietnam Lottery Company. Major games include Mega 6/45, Power 6/55, Mega 3×36 and Keno. Vietnam’s lottery aims to increase government revenue from suitable forms of gambling while limiting problem gambling. Around 3.1 million Vietnamese participate in the state lottery.
Venezuela
Since 1973, lotteries in Venezuela have been managed by a state operator Lotería de Venezuela. It runs popular draws like Lotería Tradicional and La Gran Lotería. No other lotteries are allowed. Revenue generated is meant to fund public health, education, housing, and culture. However, lottery sales and contributions have declined due to Venezuela’s economic crisis. Around 57% of Venezuelan adults play the lottery.
Egypt
Egypt strictly prohibits all private lotteries but permits lottery games run by the state. The General Authority for Government Lotteries supervises all lottery operations nationwide. Lottery games like Ramo and Hagou El-Nas include monthly, weekly and daily draws. Funds support the Egyptian national budget and public infrastructure projects. The lottery is estimated to contribute around $545 million annually.
Tunisia
Tunisia’s national lottery Promolot was established in 1986 and holds a monopoly over legal gambling activities. No other lotteries are allowed. Promolot operates popular weekly draws, instant lotteries, and sports betting. Proceeds from ticket sales provide funding for youth and sports programs across Tunisia. Lottery revenue reached around 400 million Tunisian dinars in 2021.
Conclusion
In summary, lotteries are prevalent worldwide but the legality of lottery operations varies between jurisdictions. Most developed nations allow lotteries in some form, subject to tight government oversight. Some countries prohibit lotteries entirely for religious or social reasons. Other countries permit only state-run lotteries as part of public budget financing. While lotteries remain controversial in some contexts, they generate significant revenue for state budgets and societal causes across much of the globe. With both state and private lotteries expanding in many regions, the global lottery industry looks set to continue growing in the years ahead.
