Brian started by providing a little history of lotteries in the United States. It was surprising to learn that lotteries have been in place since
The first lottery dates back to the Colonial America times. We learned that Benjamin Franklin organized a lottery as did George Washington. There were also lotteries through Harvard, Yale and William and Mary Universities.
It was in 1964 when the modern lotteries came to be - starting in New Hampshire. And, today there are lotteries in 45 states as well as District of Columbia, Puerto Rico and the Virgin Islands. The 5 states without lotteries are Alabama (currently pursuing), Alaska, Hawaii, Nevada and Utah. There are also six lotteries in Canada.
In November of 1992, Nebraska voters (63%) approved Constitutional amendment authorizing creation of a lottery. Then in February of 1993 the Nebraska Legislature passed it.
The Nebraska Lottery began Scratch ticket sales in September 1993 and began the Lotto game sales in July 1994. Of all of the gaming in Nebraska, the lottery brings in the most revenue.
Retailers are paid a commission on ticket sales as well as winnings. In Fiscal Year 2025 $6.5billion was paid to 220,000 different retailers. Brian stated that as the jackpot rises they see increased sale - as much as 50% increase. Retailers see increased foot traffic and add-on sales from lottery players. 95% of lottery customers purchase at least one additional item while inside the store
In 2025, sales from lotteries were $109 billion with $62.7 billion in prizes. $28.4 billion was returned to the states.
In Nebraska we had $199 million in gross sales in Fiscal Year 2025-26, with $50 million returned to beneficiaries. $12 million paid to 1,200 retailers.
The allocation of lottery funds was established by Nebraska voters in November 2024 as:
44.5% - Education as directed by the Legislature
44.5% - Nebraska Environmental Trust Fund
10% - Nebraska State Fair
1% plus first $500,000 in fund proceeds - Compulsive Gamblers Assistance Fund
Earlier allocations went to:
- Nebraska Education Improvement Fund
- Education Innovation Fund
- Nebraska Opportunity Grant Fund
- Solid Waste Landfill Closure Assistance Fund
- State General Fund
- Education Future Fund
He stated that many hope to get lottery funds - there are many requests to get lottery funds.
Brian talked about the various types of lotteries currently in Nebraska.
Draw Games - where players pick a set of numbers.
Nebraska offers multi-state and in-state draw games at various price points.
- Powerball is the most recognizable game. It sells for $2 and is operated by the Multi-state Lottery Association (MUSL).
- Lotto America and 2by2 are also operated by MUSL and sell for $1.Millionaire for Life is a newer jackpot game that sells $5 and is also operated by MUSL.
- In September, MUSL will begin a new partnership game with the NFL, Powerball X’s & O’s. The game will sell for $5, and in addition to cash prizes there will be drawings for NFL game tickets and merchandise.
- Mega Millions is the first draw game to sell for $5, increasing from $2 last year. It is a multi-state game managed by a group of founding states and licensed to other lotteries.
- There are four in-state games that sell for $1; Pick 3, Pick 4, Pick 5, and MyDaY. MyDaY is the only calendar-based draw game in the country.
- There are currently at seven price points
- There are about three dozen new game introduced each year.
- Some games are simple number or symbol match games.
- Some are licensed properties like Caddy Shack; providing nostalgia or humor in addition to the prize entertainment.
- Games are printed in quantities ranging from a few hundred thousand tickets to a few million tickets.
- Quantity and price influence the size and number of prizes in a game, as well as the time it takes a game to sell out.
- Many games are only on the market for about three months, some last a year, and some like Quick 7’s are perpetual.
- Some, like the Holiday Special offer discounts or the chance to try a different game with the purchase of specific game.
- Some invite players to submit non-winning tickets for a chance to win special cash or merchandise prizes.
- In some cases, making a qualifying purchase (Nebraska Pick 5) receives an entry voucher that can be submitted for the chance to win football tickets.
- During the holidays these are ideal for gift giving and offer second chance contest for the chance to win prizes such as cash, vehicles or travel vouchers.
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