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The Hoosier Lottery is run by the government of Indiana. It is the only US lottery that uses the state's nickname as its official name. It is a member of the Multi-State Lottery Association (MUSL). Its games include Hoosier Lotto, Powerball, Lucky 5, Mega Millions, and numerous scratch games. Odds of winning the Hoosier Lotto are 1:7, which is higher than almost all lotteries.
In early American history, legislators commonly established lotteries to fund schools, roads, and other public works. The government of the Indiana Territory in 1807 chartered Vincennes University, authorizing it to raise up to $20,000 in a lottery, to provide for a library and other facilities. The lottery was a failure; after a year, those few tickets that had been sold were recalled. Another lottery was authorized in 1810 to raise $1,000 to buy books for a library in Vincennes, but it was unsuccessful. Another was authorized in 1818 for the Jeffersonville Ohio Canal Company to raise $100,000, but it only brought in $2,536.
The 1840s and 1850s saw a general movement against lotteries in the United States, partly on moral grounds, and partly due to a backlash against legislative corruption. The Indiana constitutional convention of 1851 adopted, with little debate, a clause that "no lottery shall be authorized; nor shall the sale of lottery tickets be allowed".
Vincennes University moved to revive its lottery in 1879, arguing successfully in a test case before the Indiana Supreme Court that, under the Contracts Clause, the lottery provision of the 1807 charter could not be revoked, even by a constitutional ban. The U.S. Supreme Court soon rejected a similar argument in Stone v. Mississippi, but Vincennes was able to run its lottery as a policy game, contracted out to a group of experienced lottery operators from Kentucky, for over a year before it was ruled unlawful in 1883.
In 1988, state voters approved by 62 percent a constitutional amendment lifting the ban. Indiana legislators authorized the state lottery, along with parimutuel betting on horse racing, in May 1989. The first scratch-off game, Hoosier Millionaire, went on sale in October. Lotto Cash, the first online game, began in April 1990.
On July 29, 1998, a group of 13 machine-shop workers from Ohio bought a Powerball ticket in Richmond, Indiana that won the then-largest U.S. lottery jackpot ($295.7 million annuity value.) The "baker's dozen" had chosen the cash option. Richmond produced a yet-larger Powerball prize of approximately $314 million in the August 25, 2007 drawing.
The drawing on November 7, 2007 had a jackpot of $54.5 million, its largest jackpot ever. Retired steel worker Peter Gilbert of East Chicago, Indiana chose the cash option of $40.4 million rather than the 30 annual payments . There were no jackpot winners since October 21, 2006, so the grand prize broke its previous jackpot record of $42 million set June 5, 1999.
Daily 3 is a daily pick 3 game that began in 1990. Prices, prizes and types of play vary. Daily 3 is drawn 13 times weekly, with one drawing on Sundays.
Daily 4 also began in 1990. Prices, prizes and types of play vary. Daily 4 also is drawn 13 times weekly.
Lucky 5 is also drawn 13 times weekly. The top prize is $50,000. Games cost $1 each. Lucky 5 uses a 5/36 matrix.
Quick Draw is daily; games cost $1 each. Players choose 10 numbers from 1-80. The Lottery draws 20 numbers. Matching any 10 of the 20 numbers wins $300,000. This game is very similar to Keno.
Mix & Match is played Tuesday and Friday evenings. For each Mix & Match ticket, players receive three lines of five numbers each; one play costs $2. Five numbers from 1-50 are drawn. There are multiple ways of winning. Match the 5 numbers across a three line set to win up to $5,000. Match all five numbers on a single line to win $200,000.
Hoosier Lotto was the first Indiana lottery. It is played on Wednesday and Saturdays, and uses a 6/48 matrix. The jackpots begin at $1 million; after two drawings without a winner, the jackpot increases by $500,000 per draw. Games cost $1 each.
Since 1990, the Hoosier Lottery has been a MUSL member. Powerball began in 1992. Powerball's jackpots currently start at $40 million; it is drawn Wednesday and Saturday nights.
On October 13, 2009, the Mega Millions consortium and MUSL reached an agreement in principle to cross-sell Mega Millions and Powerball in U.S. lottery jurisdictions. On January 31, 2010, the Hoosier Lottery began selling Mega Millions tickets.