What You Should Know About Online Lottery

online lottery

Online lottery games vary from one site to another, but most work in the same way. They aren’t government-run like traditional lotteries; instead, they act as middlemen.

New Hampshire’s online lottery game is known as iLottery, while Kentucky calls its instant win games “e-Instants.” Both offer prizes in the millions of dollars.


Online lottery is a growing trend in the gaming industry. The increased internet penetration and improved betting process have boosted online lotteries’ popularity worldwide. However, players should be aware of the risks that come with online gambling. Legitimate lottery sites have various security measures in place to protect daily transactions. They should also have terms and privacy policies for their users.

Despite the booming business of online lotteries, lawmakers are not rushing to pass legislation. The Retailers Association of Massachusetts and the Massachusetts Package Stores Association have already lobbied against online lottery sales. Their concern is that the move will take away from local brick-and-mortar stores, which receive 5-percent commissions on winning tickets and 1-percent profit from regular ticket sales.

Only six US states currently offer an online lottery, including Illinois, Kentucky, Michigan, New Hampshire, and Pennsylvania. The other 48 jurisdictions have opted not to do so, even after the Department of Justice revised its opinion on the 1961 Wire Act in 2011. This change opened up the door for states to offer their own lotteries online.


Online lottery offers convenience for players, who can purchase tickets from anywhere. Most websites accept common credit cards, but some also offer e-wallets, bank transfers and even Bitcoin transactions. This allows lottery players from around the world to participate in the game. In addition, some sites allow players to play in multiple languages and currencies.

Another benefit of online lotteries is that they eliminate the risk of losing a ticket before a drawing. This is because the tickets are digital and stored under your user profile. Additionally, many lottery sites send notifications when there is a draw or winnings.

Locally owned convenience stores are concerned that the inclusion of an online lottery in the House budget will put them at a competitive disadvantage. However, proponents of the bill have used data from “control states” to claim that there is no competition with stores. This is a significant omission, as it misrepresents the impacts to privately owned stores.

Payment options

Credit cards are the favored deposit method for many online lottery players. They are convenient, fast and safe. They are also widely accepted by most lottery sites, except in countries where they are prohibited.

E-wallets offer additional security by separating your banking information from the site where you play. They can also provide fast deposits and withdrawals. However, they require an extra login and password, and they often come with a fee.

Other methods of payment include prepaid and virtual cards, which are not connected to your bank account. These cards act like debit cards, and can be topped up with cash or credit. Prepaid and virtual cards are also useful for players who prefer to keep their gambling activities private.

Another option is to use a bill pay service, which will transfer money from your bank to the lottery site. This method is convenient, but may take a few days to process. It is not suitable for small deposits, as it exposes your banking details to the lottery site and can be expensive.


Whether you win the lottery as a lump sum or annuity payments, there are several taxes associated with online lottery winnings. The most significant is federal income tax, which may be higher if you’re in the highest tax bracket. You can minimize this tax hit by documenting your winnings, including receipts for tickets, wagers, canceled checks, credit card charges, and losing tickets.

The federal government typically withholds 24% of your winnings, but that might not be enough to cover what you owe at tax time. In addition, the state where you live may also want a cut of your winnings.

If you’re in the highest tax bracket, it may be best to take a lump sum payment and invest it for a higher return. This is something you should discuss with your financial or tax advisor before claiming your prize. You can also lower your tax bill by donating to charity and taking advantage of tax deductions.