Five states do not have a lottery: Alabama, Alaska, Hawaii, Nevada, and Utah. The reasons split into two camps. Utah and Alabama have written prohibitions into their state constitutions on religious and moral grounds. Nevada, Alaska, and Hawaii keep their bans for economic and cultural reasons tied to existing industries, revenue structures, or a broader rejection of commercial gambling. Every other state, along with the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, runs some form of lottery and participates in multi-state games through the Multi-State Lottery Association.
Utah
Utah’s ban is one of the strictest in the country. The state constitution says the legislature “shall not authorize any game of chance, lottery or gift enterprise under any pretense or for any purpose.”1Utah Legislature. Utah Constitution Article VI, Section 27 Because the prohibition sits in the constitution rather than in ordinary statute, lawmakers cannot repeal it on their own. Changing it would take a constitutional amendment: two-thirds of both legislative chambers plus a majority of voters.
The ban reflects the moral and religious convictions of a large share of Utah’s population, and state officials have consistently argued that gambling’s social costs outweigh any revenue it would bring in. Utah also backs the ban with criminal penalties. Knowingly possessing a gambling device with intent to use it for gambling is a class A misdemeanor, and a second offense becomes a third-degree felony.2Utah Legislature. Utah Code 76-9-1407 – Possessing a Gambling Device or Record
Alabama
Alabama’s constitution also forbids lotteries. Section 65 says the legislature “shall have no power to authorize lotteries or gift enterprises for any purposes” and directs lawmakers to pass laws banning the sale of lottery tickets inside the state.3Justia Law. Alabama Constitution Section 65 – Lotteries and Gift Enterprises Prohibited As in Utah, undoing it means amending the constitution through a statewide vote.
Religious and socially conservative groups have repeatedly blocked legislative efforts to put a lottery amendment on the ballot, arguing that accessible gambling drives up personal debt, addiction, and related harms. Alabama law also makes it a class A misdemeanor to possess a gambling device with intent to use it for unlawful gambling, covering manufacturing, selling, transporting, or possessing such devices.4Alabama Legislature. Alabama Code 13A-12-27 – Possession of Gambling Device
Nevada
Nevada’s position is counterintuitive. The state most associated with gambling is one of the few that bans lotteries. Running an unauthorized lottery there is a gross misdemeanor.5Nevada Legislature. Nevada Revised Statutes Chapter 462 – Lotteries and Games The state’s statutory definition of “lottery” specifically excludes promotional schemes run by licensed casinos,6Nevada Legislature. Nevada Revised Statutes 462.105 – Lottery Defined which points to the real reason behind the ban: protecting the private casino industry.
Casinos and resorts generate large tax revenues and employ a significant share of Nevada’s workforce. Industry leaders and lawmakers have long argued that a state-run lottery would pull spending away from casinos that already pay substantial licensing and gaming fees. A government-run competitor to the state’s biggest private industry has never gained real political traction.
Alaska
Alaska’s lack of a lottery is a fiscal story more than a moral one. The state has no individual income tax and leans heavily on oil and natural resource revenue. Each year, eligible residents receive a check from the Alaska Permanent Fund; the 2025 dividend was $1,000 per person.7State of Alaska Department of Revenue. Permanent Fund Dividend – Tax Information With that fiscal setup, the pressure to find new revenue through a lottery has stayed low compared to states that depend on income and sales taxes.
Geography matters too. Alaska’s small, widely dispersed population would make a statewide retail distribution network costly relative to the return. The state does allow some charitable gaming, but no serious push for a full state lottery has gained momentum.
Hawaii
Hawaii bans all forms of gambling. Knowingly participating in any gambling activity is a misdemeanor under state law.8Justia Law. Hawaii Revised Statutes 712-1223 – Gambling The only exception is social gambling in a private setting where no one profits from running the game. Hawaii is the only U.S. state with no legalized gambling of any kind: no casinos, no sports betting, no charitable gaming, and no lottery.
Officials have tied the prohibition to protecting local culture and a tourism-based economy without the crime, addiction, and financial problems they associate with commercial gambling. Legislators have introduced bills to study or permit a lottery in recent sessions, but those proposals have stalled before reaching a vote.
Recent Legislative Efforts
Alabama’s legislature has taken up the issue most frequently. In the 2026 session, House Bill 448 proposed establishing an Alabama Lottery Corporation and authorizing a constitutional amendment letting voters decide.9Alabama Legislature. HB448 – Alabama Lottery Corporation The bill went to committee but faces the same opposition from religious groups and anti-gambling advocates that killed earlier attempts.
Hawaii has seen similar bills, including lottery authorization and broader gambling studies, none of which have cleared committee. In Nevada, Alaska, and Utah, there is little active movement. Nevada’s casino industry remains firmly opposed, Alaska’s resource-revenue model keeps urgency low, and Utah’s constitutional ban paired with strong cultural opposition makes change unlikely in the near term.
Buying a Ticket in a Neighboring State
Residents of these five states regularly cross a border to buy tickets, especially when Powerball or Mega Millions jackpots climb. Buying a ticket in a state where the lottery operates is legal, because the transaction happens under that state’s laws, and retailers near the borders of non-lottery states tend to see sales spikes during large jackpots.
Carrying the ticket home is less clean. Federal law generally prohibits transporting lottery tickets across state lines,10Office of the Law Revision Counsel. 18 U.S.C. Chapter 61 – Lotteries with a separate statute creating an exemption for tickets and materials used within a state that runs its own lottery.11Office of the Law Revision Counsel. 18 U.S.C. 1953 – Interstate Transportation of Wagering Paraphernalia That exemption does not clearly cover an individual bringing a ticket into a state with no lottery. In practice, federal authorities do not prosecute individual buyers; the statutes target commercial operations and large-scale trafficking. The bigger exposure is state law: carrying a ticket into Alabama or Utah can intersect with the gambling-device possession statutes described above.
If you win, you generally do not need to be a resident of the state where you bought the ticket to collect. State lotteries let anyone who legally bought a ticket claim the prize, with identification and a Social Security number required. Federal tax withholding of 24% applies to prizes over $5,000,12Internal Revenue Service. Instructions for Forms W-2G and 5754 and whether you also owe state income tax depends on your home state’s rules.