Lotteries - International Lottery Games

Lotteries operate in more than one hundred countries around the world. According to La Fleur's, worldwide lottery sales were $160 billion during 2003. The North American Association for State and Provincial Lotteries (NASPL) reports on its Web site (www.naspl.org) that U.S. lotteries accounted for $45.3 billion (or 28% of this total). Canadian lotteries had sales of $8.1 billion (Canadian), meaning that North America accounted for about one-third of worldwide lottery sales during 2003. North American sales were up 7% from $50.7 billion reported for 2002.

More than seventy-five government and private lotteries operated in Europe during 2003. The European market generally accounts for 40–45% of world lottery sales. According to Scientific Games Corporation the top five lotteries in terms of sales during 2003 were in Spain, Japan, France, Italy, and the United Kingdom. In 2004 Spain, France, and the United Kingdom teamed together to start the Euro Millions lottery.

One of the most popular lotteries in the world is the Spanish lotto, El Gordo ("the fat one"). El Gordo has been conducted in Spain since 1812. Drawings are held four times a year, and the December drawing, called the Navidad (or Christmas) Lottery, is the largest single gambling event in the world. The lottery is operated by Organismo Nacional de Loterías y Apuestas del Estado (ONLAE). The number of tickets printed is limited to 66,000, meaning that the odds of winning a prize are about one in six. Winnings are paid out in a lump sum and are not taxed by the Spanish government. The Christmas Lottery has a 70% payout rate, much higher than most European and North American lotteries. In December 2003 the total prize for the El Gordo lottery reached $1.3 billion. The jackpot was only $470 million, but more than 10,000 prizes were awarded in all.

Beginning in the late 1990s several U.S. lottery agencies began talks with foreign countries regarding development of an international lottery. The International Lottery Alliance was led by Edward J. Stanek, director of the Iowa lottery. By April 2003 at least thirty states and dozens of foreign countries were negotiating terms for an international lottery (tentatively called Super Pool). It was expected to offer jackpots of up to $500 million. There were many logistical problems to overcome including setting a location for drawings and dealing with time zone and currency differences.

In April 2004 the Indianapolis Star reported that the deal had fallen apart after several European nations backed out in protest over the U.S. invasion of Iraq ("War Dampens Indiana's Hopes of International Lottery," April 3, 2004). The remaining foreign countries also backed out amid fears that U.S. residents would dominate ticket sales and prizes without more international participation.