History of Lottery
are not a modern, or American, invention. Scholars disagree
on the origin of lotteries, but forms of lotteries date back
to the time of Caesar, before Christ. There are references
to lotteries in the bible. From 100 B.C. through the 17th
century, China and European countries used lotteries to finance
defense (like the Great Wall in China); fund armies; build
chapels, almshouses, canals and port facilities; and to replenish
Lotteries served an important function in the early development
of the country through the Civil War. The first permanent
English colony in America, Jamestown, was funded by a lottery
started in London by James the First. Many of America's founding
fathers played and sponsored lotteries. Benjamin Franklin
used lotteries to finance cannons for the Revolutionary War.
George Washington operated a lottery to fund construction
of the Mountain Road that opened westward expansion from Virginia.
John Hancock operated a lottery to rebuild historic Faneuil
United States, lotteries were most active during the period
following the adoption of the Constitution and before the
establishment of an effective means of local taxation. Prior
to 1790, America had only three incorporated banks; thus,
lotteries served as established sources of public and private
1790 until the lottery prohibition movement succeeded, Lotteries
established and funded numerous civic improvements and educational
institutions. Fifty colleges, 300 schools and 200 churches
were erected with Lottery proceeds. These include some of
our most prestigious educational institutions, such as Harvard,
Yale, Princeton and Columbia. Between 1790 and 1860, 24 of
the 33 states financed hospitals, orphanages, libraries, courthouses,
and jails through lotteries.
1820 and 1878, corruption in privately operated lotteries
became rampant. Governments found themselves unable to regulate
these lotteries and began lottery prohibition. By 1878, all
states except Louisiana prohibited lotteries, either by statute
or constitutional provision. In 1905, the United States Supreme
Court reaffirmed the states' authority to control gambling.
For the next 60 years, no state was directly involved in the
operation of a gaming enterprise, and lotteries were prohibited.
the Irish Sweepstakes was launched with great success in America
because of the abolition of lotteries. In 1964, New Hampshire
created a state lottery, the first legal American lottery
in this century. Within several years, New Hampshire was followed
by New York and New Jersey. In 1971, nationwide lottery sales
surpassed $100 million for the first time.
On November 8, 1988 Indiana voters approved a lottery referendum
by a strong majority, 62 percent. On May 3, 1989, the Indiana
General Assembly ratified the Lottery Act and, a week later,
Governor Evan Bayh signed the Lottery Act into law. In June,
Jack Crawford became the first Lottery Director. The Lottery
Commission was appointed a month later.
months after the creation of the first Commission, the Hoosier
Lottery was in full operation. On October 13, 1989, instant,
or scratch-off, ticket sales began at 12:10 p.m. On the first
day alone, 8.19 million tickets were sold. By the following
week, first week sales exceeded $21.8 million.
28, 1989, the Hoosier Millionaire show debuted on WTTV-4 in
Indianapolis and on its 10 station network. By mid-November,
first month sales exceeded $61 million. The Lottery immediately
repaid the state of Indiana more than $6 million in startup
costs, plus interest. Within another three weeks ticket sales
reached $100 million.
15, 1990, Governor Bayh accepted $73 million from the Hoosier
Lottery for tax relief.
30, 1990, the Hoosier Lottery began its first on-line game,
Lotto Cash. On May 5, The first Lotto Cash drawing took place.
One month later, Kurt and Teresa Voskuhl won $6 million for
the first Lotto Cash jackpot. In July of that year, the Lottery
introduced Daily 3 and Daily 4 games. August saw the unveiling
of the Dream Machine, the Lottery's "mobile ambassador,"
a bright red Hoosier Lottery bus that travels around the state
participating in special Lottery events. In October, Indiana
joined the Lotto*America game (which later became Powerball).
1991, the Hoosier Lottery ranked sixth in instant ticket sales
among the 33 state lotteries. The Lottery's game show, the
Hoosier Millionaire, gave away more money in prizes than any
other game show in the country. By the end of 1991, the Hoosier
Lottery topped $1 billion in sales.
1992, Lotto America changed to the Powerball game. Indiana
led the United States in Powerball sales after two weeks.
Indiana resident, Bert Morlan, became the first Powerball
winner, beating players in 15 participating states. The Lottery
reached its 99th and 100th millionaires in the Lotto Cash
drawing. The first bar-coded Scratch-Off Tickets, Cash Crop,
Draw Poker and 3 Times Lucky, began. In December, entry onto
the Hoosier Millionaire game show was changed: winning entries
were now generated on every 50th dollar of sales, instead
of every 50th transaction.
1993, Nelson Oles pulled his own entry ticket in the drawing,
and made a repeat appearance on the Hoosier Millionaire show.
He was the third repeat contestant. The Hoosier Lottery introduced
its fifth on-line game, Lucky 5.
1994, the Hoosier Bingo instant game began. In September,
Hoosier Lotto replaced Lotto Cash. Hoosier Lotto was designed
to have more winners and bigger jackpots, and it offered the
only "match two of six" prize in a pick-six game
in North America. The game's first drawing, on September 24th
produced 112 times more winners than the final Lotto Cash
drawing. On September 19-24, the Hoosier Lottery hosted the
North American Association of State and Provincial Lotteries
(NASPL) convention in Indianapolis. The economic impact of
the conference was estimated at more than $600,000.
1994, the Hoosier Lottery sold its first $5 instant ticket
to commemorate the Lottery's fifth birthday. Other birthday
celebrations included transfers to the state of $708 million,
ticket sales totaling over $2.4 billion and player prize payouts
of over $1.3 billion since the Hoosier Lottery's inception.
In fiscal year 1994, the Hoosier Lottery averaged 1,000 major
winners ($500 or more) every month.
1995, Indiana led all Powerball states with a $9.1 million
winner and seven $100,000 winners in the March 4th drawing.
By April, transfers to the state topped $800 million. In May,
the Lottery launched its informational campaign designed to
let Hoosiers know that more than $100 million in Lottery profits
would be used in 1996 to reduce license plate excise taxes.
In June, the Lottery recognized a Hoosier entertainment tradition
by inaugurating Instant Euchre, the world's first lottery
game to use suit and trump.
1995, the Lucky 5 game was expanded from two to five nights
per week. The Hoosier Lotto now offered a 25-year annuity
as a prize payment option. In November, the Hoosier Lottery
awarded a new media contract to WNDY-TV in Indianapolis to
broadcast the Hoosier Millionaire show. In December, Indiana
had the first quintuple $100,000 Powerball ticket sold in
the 21 participating states.
1996, the Hoosier Lottery unveiled a fresh look for the Hoosier
Millionaire game show. Later in February, the Lottery held
the first Lucky 5 second-chance drawing, allowing players
to win $70,000 in one drawing and $500 in prize drawings held
later in March. In April, the Hoosier Lottery presented Lucky
For Life 1, the first instant ticket that offered a prize
for life ($1000 per month for the winner's lifetime). In August,
Frederick Leo O'Connor of Indianapolis hit the Lucky 5 jackpot
four times and received $200,000. Lucky 5 was expanded again,
to seven nights a week.
1997, the Hoosier Lottery introduced the Tax Free Million
instant game offering a top prized of $1 million with the
federal taxes paid for by the Hoosier Lottery (The state of
Indiana does not impose taxes on Hoosier Lottery winnings.)
The Hoosier Lottery launched its first Web page on the Internet
at www.hoosierlottery.com. In June, the Lottery introduced
a new multi-state game, Daily Millions. In November, the multi-state
Powerball game made changes to allow a choice between cash
or annuity options, and larger prizes in lower levels.
1998, the Hoosier Lotto game was expanded from one drawing
on Saturday to two drawings conducted on both Wednesday and
Saturday. The first $10 instant ticket, 2 Million In Cash,
went on sale in late February. In March, the Multi-State Lottery
dropped the Daily Millions game and began the Cash4Life game,
the first multi-state game to offer a lifetime prize. In August,
a Powerball ticket sold in Richmond, Indiana to a group of
co-workers pooling their money was validated for $295.7 million,
the largest North American jackpot.
1999, David and Elaine Pearson claimed the largest Hoosier
Lotto jackpot ever, $42 million. They decided to accept the
cash option of $26.2 million, and took home $16.3 million
after Federal taxes were deducted. In August, the Hoosier
Lotto jackpot was split by three winning tickets for the first
time. William Hutchison of LaPorte, Robert Hagberg of Ligonier
and Dale Gaddy and Olav Haug of Indianapolis split the $10.5
million prize. In October, WB4 is selected as the new television
station for the Hoosier Millionaireshow
and the nightly Lottery drawings. WB4 began Lottery productions
in early 2000. On October 13, 1999, the Hoosier Lottery celebrated
its 10th anniversary with gala events held across Indiana.