Nearly every state runs a lottery, and state lottery laws govern how lotteries should be conducted and controlled. Lottery laws dictate how revenues should be distributed, the time limits for claiming prizes, and where, how, and to whom tickets may be sold. The majority of state lottery revenue goes to the state’s general fund, and then is earmarked for specific projects. Indiana’s state lottery laws, for example, also designate lottery revenue for its Build Indiana project, teachers’ retirement fund, and police and fire pension funds.
Lotteries Laws in Indiana
By law, revenue from Indiana’s official lottery is dedicated to capital improvements for the benefit of the people of Indiana. The Hoosier Lottery runs both Powerball and Mega Millions campaigns, and brought in about $945 million in revenue for the year 2013. This figure accounts for approximately four percent of the state’s total income, with the majority of state revenue coming from individual and corporate income tax and sales tax. Over $150 million went to the Build Indiana Fund, which then disperses money to universities, schools, and the Indiana Technology Fund.
| Code Section | 4-30-1-1, et seq. |
| Distribution of Lottery Revenue | Administrative trust fund for prizes and expenses; any surplus revenue (where roughly $15 million goes to state teachers' retirement fund and $7.5 million to pension relief fund with remaining surplus to the "Build Indiana Fund" for highway construction, job creation, economic development and state and local capital projects) |
| Additional Purpose of Lottery | To enable the people of Indiana to benefit from significant money for capital improvements |
| Lottery Prize Subject to Garnishment | For prizes over $599, if owes (1) outstanding debt to state agency, (2) delinquent state taxes, or (3) child support paid through a court [if multiple obligations, 1st to child support, 2nd to judgments owed, 3rd to tax liens, and 4th to unsecured debts owed by prize winner] |
| Time Limit to Claim Prize/Disposition | 180 days/added to pool for future prizes or used for special prize promotions |
| Prohibited Related Activities | Sale to minors; stolen/counterfeited/altered tickets; at different price; by unauthorized retailer or agent; sale on credit |
Related Resources for State Lotteries Laws:
The laws surrounding state lotteries can be difficult to understand. If you would like legal assistance regarding a lottery matter, you can contact an Indiana gaming law attorney in your area, and schedule a consultation to discuss your case. You can also visit FindLaw’s Gaming Law section for additional articles and resources on this topic.
