Multi-State Lottery Association
The Multi-State Lottery Association (MUSL) is a non-profit, government-benefit organization founded in 1987 and owned by its member state lotteries to facilitate the development and operation of multi-jurisdictional lottery games across the United States.[1][2][3] Headquartered in Johnston, Iowa, MUSL coordinates games that pool prize funds from participating jurisdictions, enabling larger jackpots than single-state lotteries could offer, with its flagship product, Powerball—launched in 1992—frequently generating prizes exceeding $1 billion.[4][5] As of recent filings, it comprises 38 member lotteries from U.S. states and the District of Columbia, each retaining responsibility for ticket sales, prize payments, and regulatory compliance while benefiting from MUSL's centralized services like drawing security and intellectual property management.[6] Other notable games include Lotto America and Lucky for Life, though MUSL collaborates with the separate Mega Millions consortium for cross-selling arrangements.[2][7] The association has achieved significant revenue generation for member states' education and public programs but encountered controversy in the Hot Lotto fraud scandal, where former security director Eddie Tipton rigged drawings in multiple states, leading to convictions, lawsuits, and enhanced oversight measures.[1][8][9]History
Founding and Initial Operations
The Multi-State Lottery Association (MUSL) was founded in 1987 as a non-profit, voluntary association owned and operated by its member state lotteries to enable multi-jurisdictional games, allowing smaller lotteries to pool resources for larger prize pools that individual states could not sustain.[1][10] This structure addressed the limitations faced by lotteries in low-population states, where single-state jackpots often remained modest due to insufficient ticket sales.[10] Initial membership included six lotteries from smaller U.S. jurisdictions, comprising five states and the District of Columbia, which sought collaborative mechanisms to enhance game appeal and revenue potential without altering their independent statutory operations.[1][10] Headquartered in Urbandale, Iowa, MUSL established governance through its member directors, emphasizing shared intellectual property management, prize fund allocation, and draw coordination to ensure equitable participation.[11] MUSL's inaugural operation was the launch of Lotto America on February 13, 1988, a pick-6 game with a rolling jackpot drawn from a shared prize pool across participating members, initially offering odds of 1 in 7,059,052 for the top prize.[12][1] Draws occurred twice weekly, with tickets priced at $1, and the game facilitated interstate prize claims while members retained control over local sales and taxes.[12] This early framework prioritized secure, audited processes to build player trust, setting the operational model for subsequent expansions.[11]Development of Powerball and Early Games
The Multi-State Lottery Association (MUSL) introduced its first multi-jurisdictional game, Lotto America, with ticket sales beginning on February 11, 1988, and the inaugural drawing held on February 13, 1988.[13] Priced at $1 per play, the game utilized a 7/40 matrix, requiring players to select seven numbers from 1 to 40, with jackpots determined by matching all seven drawn numbers; pari-mutuel prizes were awarded for partial matches.[14] [13] Initially offered in seven jurisdictions—Iowa, Kansas, Missouri, Oregon, Rhode Island, West Virginia, and the District of Columbia—Lotto America aimed to pool smaller states' resources for larger prizes unavailable in single-state lotteries.[1] By the early 1990s, MUSL sought to revitalize the format to sustain player interest and sales, leading to the rebranding and overhaul of Lotto America into Powerball.[15] The transition emphasized a novel two-drum drawing mechanism to differentiate it from traditional lotto games, with one drum for the five main white balls and another for the red Powerball bonus.[16] This design, intended to heighten excitement through a secondary "power" number multiplier effect on non-jackpot prizes, represented an innovation in lottery mechanics at the time.[16] Powerball officially launched on April 22, 1992, replacing Lotto America entirely, with an initial matrix of 5/45 for white balls plus 1/45 for the Powerball and a advertised starting jackpot of $2 million (though the first drawing's jackpot reached $5.9 million before being won in Indiana).[16] [15] Drawings occurred twice weekly on Wednesdays and Saturdays, expanding participation beyond the original Lotto America footprint as additional states joined MUSL.[17] The game's early success stemmed from its simplified selection process compared to Lotto America's seven-number pick, alongside the allure of escalating annuitized jackpots funded by a portion of sales.[16]Expansions and Game Evolutions
The Multi-State Lottery Association launched its inaugural game, Lotto America, on February 13, 1988, initially involving six member jurisdictions: Iowa, Kansas, Oregon, Rhode Island, West Virginia, and the District of Columbia.[18] This multi-jurisdictional draw game pooled player contributions from smaller states to generate larger prizes than individual state lotteries could offer. Membership began expanding shortly thereafter, with South Dakota joining in 1989, followed by additional states in the early 1990s, enabling broader participation and increased prize pools.[19] In April 1992, Lotto America was rebranded and reformatted as Powerball to inject greater excitement through a two-drum selection process—five white balls from 1-45 and one red Powerball from 1-45—along with escalating jackpots that rolled over until won.[20] The first Powerball drawing occurred on April 22, 1992, across 15 jurisdictions by that point, marking a significant evolution in game mechanics to differentiate it from traditional lotto formats and attract more players.[17] Further refinements included the introduction of the Power Play multiplier option in 1999, which allowed players to multiply non-jackpot prizes for an additional fee, and matrix adjustments such as expanding to 5/49 white balls plus 1/42 Powerball on November 5, 1997.[15] Membership continued to grow throughout the 1990s and 2000s, incorporating states like Arizona in 1994, Colorado in 2001, and Florida and Arkansas in 2009, reaching over 30 members by the 2010s and facilitating nationwide reach for Powerball.[10] Game portfolio diversification accelerated with the launch of 2by2 on June 2, 2002, a daily draw game available in select members like Kansas and Nebraska, emphasizing smaller but frequent prizes.[21] Lotto America was revived in November 2017 with updated features, including an All Star Bonus multiplier and starting jackpots of $2 million, to fill a mid-tier jackpot niche after the original game's discontinuation.[14] Lucky for Life debuted as a MUSL-administered game in 2015, evolving from a regional Connecticut format into a multi-state offering with daily draws for a $1,000-a-day-for-life top prize, expanding to 20+ jurisdictions by 2016.[22] Powerball underwent major updates in October 2015, shifting to 5/69 white balls plus 1/26 Powerball, raising ticket prices to $2, and doubling starting jackpots to $40 million, which dramatically increased average jackpot sizes but lengthened odds to 1 in 292 million.[23] These evolutions reflected MUSL's strategy to balance prize appeal, sales volume, and operational sustainability amid growing competition from other associations like the Multi-State Lottery Consortium for Mega Millions.[24]Organization and Governance
Legal Structure and Operations
The Multi-State Lottery Association (MUSL) is an unincorporated nonprofit association organized as a government-benefit entity under Iowa Code Chapter 501B, distinct from its member lotteries yet wholly owned and operated by them through the Multi-State Lottery Agreement, an interstate compact originally established on August 14, 1987.[25][26] This agreement binds participating state and territorial lotteries, enabling joint administration of multi-jurisdictional games while preserving each member's sovereignty over intrastate operations. As of the fiscal year ending June 30, 2025, MUSL comprises 39 member lotteries from U.S. states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.[6] Governance is vested in a Board of Directors consisting of one representative from each member lottery, with decisions requiring a quorum of more than 50% of members and typically a simple majority vote, though rule changes or amendments to the agreement demand a two-thirds supermajority.[26][25] Voting incorporates both equal representation (one vote per lottery) and a proportional component based on each member's in-state game sales, capped at one-third of total votes to prevent dominance by larger jurisdictions. The board establishes bylaws, approves operational fees, and oversees compliance with standards for game integrity, security, and financial accountability, with amendments to the agreement last occurring on October 3, 2016.[25] In operations, MUSL coordinates the development, rule-setting, and administration of shared draw games, including aggregating prize pools from member contributions proportional to ticket sales, managing a central prize reserve fund to cover liabilities, and providing technical, legal, and security support such as draw conduct and intellectual property licensing.[2][26] Member lotteries retain primary responsibilities for ticket sales, retailer licensing, prize validation and payment within their borders, and revenue allocation to state beneficiaries, operating under their own statutes while adhering to MUSL-promulgated game rules and paying operational fees to the association.[2] Withdrawal from membership requires six months' notice, during which obligations persist. MUSL's headquarters in Johnston, Iowa, houses functions like finance, product groups, and central services, ensuring equitable cost-sharing and uniform game standards across jurisdictions.[25]Leadership and Decision-Making
The Multi-State Lottery Association (MUSL) is led operationally by an Executive Director, who manages daily activities including game development, drawings, finance, security, and administrative support in accordance with policies set by the governing Board of Directors.[3] J. Bret Toyne has served as Executive Director, overseeing these functions for the non-profit association owned by its member lotteries.[3] A Deputy Executive Director, such as Wayne Dolezal, assists in these responsibilities.[3] Governance is provided by a Board of Directors comprising executives from member state lotteries, with each of the approximately 38 member lotteries holding one vote on association matters.[6] [27] The Board unanimously elects officers annually; for fiscal year 2025, effective July 2024, Drew Svitko, Executive Director of the Pennsylvania Lottery, was elected President, Matt Strawn, CEO of the Iowa Lottery, as Vice President, and Rebecca Paul, President and CEO of the Tennessee Lottery, as Secretary.[28] The Board's duties include developing MUSL's mission, establishing bylaws, rules, policies, and procedures, as outlined in the association's agreement.[25] Decision-making emphasizes consensus among members, with the Board holding authority over strategic and operational policies, while encouraging active participation from member lotteries in managing multi-jurisdictional games.[29] [6] Specialized product groups, such as the Powerball Group, handle game-specific rules, rule changes, and disputes, often requiring approval from committees like the Security and Integrity Committee for major system modifications.[30] Individual member lotteries retain autonomy over local decisions like prize declarations and payments, but multi-state matters, including intellectual property use and cross-jurisdictional coordination, require MUSL authorization or Board resolution.[31] Disputes among members are resolved through formal notice to the Board.[30]Games Operated
Powerball
Powerball is a jackpot lottery game administered by the Multi-State Lottery Association (MUSL), in which participants select five numbers from 1 to 69 (white balls) and one number from 1 to 26 (red Powerball) for a $2 ticket price.[5] The game operates across 45 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, with drawings conducted every Monday, Wednesday, and Saturday at 10:59 p.m. ET from a studio in Tallahassee, Florida.[5][32] Matching all five white balls and the Powerball wins the jackpot, which begins at a minimum of $20 million and increases based on ticket sales and interest if not claimed; winners may elect a lump-sum cash option or an annuity paid over 30 graduated installments spanning 29 years.[33][5] An optional Power Play feature, available for an additional $1 per play (mandatory in Idaho and Montana), multiplies non-jackpot prizes by 2x to 10x depending on the draw and jackpot size.[5] The jackpot odds stand at 1 in 292.2 million, a figure resulting from matrix changes implemented on October 7, 2015, which expanded the white ball pool from 59 to 69 numbers and the Powerball pool from 35 to 26, while raising the base ticket price from $1; these alterations aimed to extend rollovers and generate larger advertised prizes, though they reduced win probability from prior 1-in-175-million odds.[23] Overall odds of winning any prize are approximately 1 in 24.9.[34] MUSL allocates prize funds from a parimutuel pool, with 51.9% of sales directed to prizes, including fixed lower-tier awards like $1 million for matching five white balls without the Powerball.[31] Powerball launched with its first drawing on April 22, 1992, following ticket sales starting April 19, evolving from MUSL's earlier Lotto America game introduced in 1988.[35] Over time, expansions in participating jurisdictions and rule tweaks, such as the 2015 overhaul, have driven jackpot growth, with the game holding the record for the largest U.S. lottery prize at $2.04 billion, claimed by a single California ticket on November 7, 2022.[36] Other major jackpots include $1.765 billion won in California on October 11, 2023, and $1.586 billion split among tickets from California, Florida, and Tennessee on January 13, 2016.[37] These sums reflect annuity values before taxes, with cash options typically about half; MUSL ensures unclaimed grand prizes revert to future jackpots or member lotteries after a 180-day claim period.[31]Lotto America and Other Draw Games
Lotto America is a multi-jurisdictional draw game operated by the Multi-State Lottery Association (MUSL), revived on November 8, 2017, following the original game's discontinuation in 1992.[14] The original Lotto America debuted on February 13, 1988, as MUSL's inaugural lottery product, with players selecting seven numbers from 1 to 40; it was rebranded and reformatted as Powerball to enhance jackpot appeal and participation.[14] The revived version features draws on Mondays, Wednesdays, and Saturdays at 9:15 p.m. Central Time, with tickets priced at $1 per play.[38] To participate, players select five numbers from 1 to 52 and one Star Ball from 1 to 10, either manually or via quick pick; an optional All Star Bonus multiplier, costing an additional $1, applies to non-jackpot prizes and randomly multiplies winnings by 2, 3, 4, or 5 times.[39] The jackpot begins at $2 million and rolls over until won, paid as an annuity over 29 years or a lump-sum cash option; overall odds of winning any prize are approximately 1 in 26.[40] As of 2025, the game is available in 16 participating jurisdictions, including Iowa, Minnesota, and Tennessee, among others, with prizes funded parimutuelly from sales.| Prize Level | Match | Base Prize (with All Star Bonus multiplier range) | Odds |
|---|---|---|---|
| Jackpot | 5 + Star Ball | Starts at $2 million (annuity); varies | 1 in 25,989,600 |
| Level 2 | 5 | $20,000 ($40,000–$100,000) | 1 in 2,887,733 |
| Level 3 | 4 + Star Ball | $1,000 ($2,000–$5,000) | 1 in 110,302 |
| Level 4 | 4 | $200 ($400–$1,000) | 1 in 12,255 |
| Level 5 | 3 + Star Ball | $100 ($200–$500) | 1 in 2,481 |
| Level 6 | 3 | $20 ($40–$100) | 1 in 276 |
| Level 7 | 2 + Star Ball | $20 ($40–$100) | 1 in 188 |
| Level 8 | 1 + Star Ball | $5 ($10–$25) | 1 in 40 |
| Level 9 | Star Ball only | $2 (no multiplier) | 1 in 17 |