In the United States, playing the lottery is a popular pastime for many people. Most states offer some form of lottery gaming, whether it be scratch tickets, draw games like Powerball and Mega Millions, or other gambling formats. However, there are a few states that buck this trend and have chosen not to participate in government-sponsored lotteries.
States without lotteries
Currently, there are only 6 states that do not have a lottery: Alabama, Alaska, Hawaii, Nevada, Utah, and Mississippi. Let’s take a closer look at each of these states and why they opted out of having a lottery.
Alabama
Alabama is one of the few states without a lottery. Efforts to establish a lottery there have failed multiple times, most recently in 2016. Opposition tends to come from conservative and religious groups who argue that lotteries prey on the poor and vulnerable. There are also concerns about using lotteries to fund education, as they can be an unstable revenue source.
However, neighboring states do have lotteries and many Alabamians cross state lines to purchase lottery tickets in Georgia, Tennessee, Florida and Mississippi. This results in millions in revenue leaving the state. There are advocates who believe a lottery could generate $400 million annually for Alabama. But overcoming moral objections remains challenging.
Alaska
Alaska is another state with no government-run lottery. It is one of eight states without any casinos either. Part of the resistance to gambling comes from Alaska’s libertarian “leave me alone” attitude. Many Alaskans simply do not want the government involved in gaming and betting. The lack of sales tax in Alaska also removes a common argument for lotteries being needed to boost state revenue.
Despite not having a lottery, Alaska has a seasonally fluctuating economy that sees big spikes in population and revenue during tourist seasons. So Alaska is not entirely anti-gambling. Bingo games and pull-tab games are popular in many cities and towns. And casino nights are often held as fundraisers for charities and community organizations.
Hawaii
Hawaii is the only state outside the continental U.S. without any form of lottery. Efforts to start a lottery in Hawaii have failed repeatedly due to strong opposition from Mormon and Catholic constituencies within the state Legislature. Similar to Alaska, Hawaiian culture tends to adopt a more casual attitude toward life. A fast-paced activity like playing the lottery simply does not mesh with that cultural approach.
Yet the lack of a lottery likely costs Hawaii millions in potential revenue. Many Hawaiian residents play lottery games out of state when traveling. And the popularity of gambling activities like bingo proves that a regulated lottery could thrive under the right conditions. Still, overcoming long-standing moral objections remains an uphill battle.
Nevada
Nevada is the only state with legalized casino gambling that does not have a lottery. But this is likely because the casino industry is so strong and entrenched in the state. Nevada casinos generate over $1 billion in gambling revenue every month. They simply do not want the competition from state-run lottery games.
Efforts to establish a Nevada lottery have failed multiple times due to this opposition from the powerful casino lobbying bloc. The Nevada Resort Association argued a lottery could hurt casino jobs and income. While proponents counter that lottery proceeds could help struggling education budgets, the casino interests have remained a formidable obstacle.
Utah
Utah is among the most conservative states when it comes to gambling. It has strong moral objections to gaming stemming from the influence of The Church of Jesus Christ of Latter-day Saints. Utah has strict anti-gambling laws and even small stakes gaming is banned.
The state has rejected efforts to initiate a lottery on many occasions. Religious groups argue lotteries exploit citizens and can ruin lives and families. They also do not want state government benefiting in any way from gaming proceeds. Utah is highly unlikely to ever approve a lottery unless there are major shifts in public attitudes.
Mississippi
Mississippi is technically the newest addition to the list of states without lotteries. It did previously have a state lottery for decades but officially shut it down in 2019 amid declining revenue. Just $2.5 million was transferred from the lottery to the state, which lawmakers deemed insufficient.
Some blame competition from casinos for the Mississippi lottery’s failure. Others argue it was poorly managed. The state also borders Tennessee and Louisiana which have successful lotteries and bought tickets there instead. But for now, lottery opponents have gotten their wish of shutting it down in Mississippi.
Why states opt out of lotteries
Looking at the states that have rejected lotteries, some common reasons emerge:
- Moral/religious objections – States like Utah cite gambling as against their principles.
- Desire to avoid competition – Casino industry in Nevada does not want a lottery.
- Cultural attitudes – Alaska and Hawaii adopt a casual approach to life.
- Failed previous attempts – Alabama and Mississippi have rejected lotteries before.
- Other gambling available – States may allow some forms like bingo and raffles.
Opponents of state-run lotteries argue that they prey on human weaknesses and fail to deliver on promises to fully fund education. There is also a concern that lower-income citizens spend disproportionately on lottery games, effectively making lotteries a regressive tax on the poor.
States that have lotteries
While the above states say no to lotteries, the vast majority allow lottery gaming. 44 states plus Washington D.C., Puerto Rico, and the US Virgin Islands currently have government-backed lotteries in operation. Their start dates range from the 1960s to the 2000s as attitudes toward gaming and public budget needs shifted.
Here is the full list of all the states with lotteries currently:
| States with Lotteries |
|---|
| Arizona |
| Arkansas |
| California |
| Colorado |
| Connecticut |
| Delaware |
| Florida |
| Georgia |
| Idaho |
| Illinois |
| Indiana |
| Iowa |
| Kansas |
| Kentucky |
| Louisiana |
| Maine |
| Maryland |
| Massachusetts |
| Michigan |
| Minnesota |
| Missouri |
| Montana |
| Nebraska |
| New Hampshire |
| New Jersey |
| New Mexico |
| New York |
| North Carolina |
| North Dakota |
| Ohio |
| Oklahoma |
| Oregon |
| Pennsylvania |
| Rhode Island |
| South Carolina |
| South Dakota |
| Tennessee |
| Texas |
| Vermont |
| Virginia |
| Washington |
| West Virginia |
| Wisconsin |
| Wyoming |
In addition to the above states, Washington D.C., Puerto Rico, and the US Virgin Islands have lotteries bringing the total to 47 lottery jurisdictions in the United States. The arrival of Powerball and Mega Millions in the 1990s and 2000s also pushed many states without lotteries like Mississippi and Alabama to revisit the idea in hopes of boosting revenues.
Lottery revenue and expenditures
State lotteries in the U.S. generated over $81 billion in ticket sales in 2020. Profits from lottery ticket sales topped $22 billion for funding state budgets. Most of this revenue goes toward education budgets, usually around 50% or more based on mandate. Some funds also go to infrastructure, senior citizen programs, wildlife conservation, and more.
Here is a breakdown of the states with the highest lottery revenue:
| State | 2020 Revenue |
|---|---|
| California | $7.4 billion |
| Florida | $7.2 billion |
| New York | $6.9 billion |
| Texas | $6.7 billion |
| Pennsylvania | $4.5 billion |
California earns the most at over $7 billion annually. New York, Florida, Texas, and Pennsylvania round out the top five for lottery revenue generation among U.S. states.
As profits have grown, some critics argue state lotteries spend too much on administration versus transfers to the public budget. They contend games are designed to maximize revenue over the public benefit.
Alternative sources of state revenue
For states that choose not to have a lottery, what are some alternative revenue sources? Here are a few options:
- Consumption/sales taxes – Most states tax the sale of goods and services.
- Excise taxes – Placed on specific goods like cigarettes, alcohol, or gasoline.
- Income taxes – Can tax individual wages or business income.
- Corporate taxes – Tax companies operating within the state.
- Severance taxes – Tax profits on resource extraction like mining and drilling.
- Property taxes – Based on ownership and value of real estate.
States have great leeway in deciding how to raise revenue to fund budgets. Some rely more heavily on certain taxes based on their unique economies and tax policies. But every state has options beyond lotteries for generating the required public funds.
Recent attempts to establish lotteries
Despite holdouts, there is frequent legislative activity to potentially expand lotteries into new states. Here are some recent efforts and votes.
Wyoming
Wyoming is surrounded entirely by states with lotteries yet has rejected proposals before. A bill to form a lottery narrowly failed in the state Senate earlier in 2022. Backers suggested revenue could help counter the state’s dependence on fossil fuels. Critics argued it would mainly take money from the poor.
Alabama
Lawmakers in Alabama introduced competing lottery bills in 2021. The dueling proposals disagreed on allowances for casino games and use of revenue. Negotiations failed to produce a compromise. Ivey urged lawmakers to reach an agreement, but the legislative session ended with no lottery approved.
Mississippi
Despite just abolishing its lottery in 2019, Mississippi legislators drafted a new lottery bill in 2022. The proposal would restrict revenue to infrastructure projects only. But it stalled due to disputes about allowing mobile and online betting. Mississippi remains without a lottery at this time.
Conclusion
State lotteries attract ongoing debate across the country. While 44 states plus some territories participate, holdouts remain due to moral objections, failed past attempts, or alternative sources of revenue. Alabama, Alaska, Hawaii, Nevada, Utah, and Mississippi continue to ban government-run lotteries for the moment.
Yet many lawmakers see lottery revenue as a tempting source of funds for strained education budgets and other priorities. Attempts to establish lotteries arise regularly even in conservative states. Attitudes and economics shift over time opening the possibility for new lottery jurisdictions. But for now, those opposed still maintain the upper hand in the states that say no to legalized lottery gaming.
