Lottery and Gaming Regulations in the United States

The State of Washington operates a lottery with seven number drawing games and dozens of scratch ticket games. Its revenue contributed more than $160 million to state programs in 2020.

In Maryland, the State Lottery and Gaming Control Agency regulates casinos, slots, and video lottery terminals. Their duties include licensing gaming operators, enforcing rules, and conducting audits. They also oversee responsible gambling programs.

To qualify for lottery licenses, a business must meet certain standards. In Minnesota, for example, retailers must set up safeguards to prevent sales to minors. Some of the lottery’s rules require the purchase of a ticket to be completed by an adult.

In West Virginia, the Commission on the Arts receives a portion of the lottery tax. In addition, tribal gaming funds have been used to fund state agency programs since FY2000.

Maryland Lottery revenue is credited to the State Lottery Fund. A portion of it is deposited into the Maryland Stadium Facilities Fund. The remaining revenues are credited to the State General Fund.

A centralized computer system allows the jurisdiction to monitor gameplay and collect revenue. In South Carolina, video lottery terminals are legal. These machines, also called video slots, are usually located in licensed establishments.

Many states, including Wisconsin and Iowa, use lottery and gaming proceeds to fund state arts agencies. Currently, lottery and gaming revenues contribute approximately 27% to state funding.

There are two major lottery systems in the United States. One involves the sale of tickets, while the other uses a progressive jackpot. Both have odds of about 1 in 25 to win.