Lotteries Gone Wild: The Legality of Online Lottery Tickets

Abstract

Gambling in the U.S. will always be a controversial issue; none more so than American lotteries. Although lotteries are more socially acceptable than at any point in our nation’s history, states continue to push the boundaries on social acceptance. Now, the growing issues concern the legality and moral implications surrounding the recent surge of online lottery markets. Currently, state legislators, judges, and governors in at least twenty states are confronting questions related to online lotteries for their specific state. The reason: in 2011 the Department of Justice issued a memorandum, which overturned a fifty-year stance on a federal anti-gambling statute, particularly related to internet gambling.This paper analyzes the legality for states to enter into the unique gambling venture of online lottery tickets. Specifically, it seeks to effectively articulate not only a clear path states should follow to adopt online lottery sales, but also analyzes whether states that currently offer virtual lottery tickets satisfy federal provisions.In Part I, this paper traces the history and development of state sponsored lotteries. Part II explores the federal statutes that implicate the legal status of online lottery sales. In Part III, this paper illustrates the current regulatory path for legalization, but also offers additional concerns states should consider in their quest to legalize online lottery sales. Finally, Part IV analyzes whether the states that currently sale online lottery tickets comply with federal law.