Key takeaways
Using a credit card to purchase lottery tickets is legal in over 20 states, although credit card users should exercise caution.
In states where it is legal, individual retailers are usually allowed to determine whether they will accept credit cards for lottery purchases.
Lottery purchases may not be eligible to earn credit card rewards and may be subject to additional fees levied by card issuers.
The allure of the lottery is understandable. After all, spending just a few bucks gives you the chance to become a multimillionaire. Unfortunately, dreams of dollar signs may cloud the fact that the odds of hitting a major jackpot are extremely low. Powerball players have a 1 in 292.2 million chance of hitting the jackpot, while the odds of hitting the Mega Millions jackpot are about 1 in 290.4 million.
In addition to long odds, you may be restricted to certain payment methods when purchasing a lottery ticket. Before you try to buy a lottery ticket with a credit card, here’s what you need to know about state rules and the downsides of charging lotto on plastic.
Can you buy lottery tickets with a credit card?
You may be able to buy lottery tickets with a credit card or debit card, but this depends on your location.
There are currently 21 states that ban the use of credit cards to buy lottery tickets, which helps prevent people from gambling with money they don’t have in their accounts. Additionally, there are 5 states that don’t have state lotteries and don’t participate in multi-state lotteries. That leaves 24 states where you can buy lottery tickets with a credit card.
Which states allow you to buy lottery tickets with a credit card?
Want to play the lottery using a credit card? Here is how each state handles its lottery purchases.
States where you can buy lottery tickets with a credit card
Arizona
California
Delaware
Florida
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maine
Michigan
Mississippi
Missouri
Nebraska
New York
Ohio
Oregon
Pennsylvania
Rhode Island
South Dakota
Vermont
Washington
West Virginia
It is also important to note that, although these states do not prohibit buying lottery tickets with a credit card, individual merchants are typically allowed to decide if they will accept credit card payments for lottery tickets.
States that do not allow the use of credit cards for lottery purchases
Arkansas
Colorado
Connecticut
Georgia
Iowa
Maryland
Massachusetts
Minnesota
Montana
New Hampshire
New Jersey
New Mexico
North Carolina
North Dakota
Oklahoma
South Carolina
Tennessee
Texas
Virginia
Wisconsin
Wyoming
States without state or multi-state lotteries
Alabama
Alaska (charitable gaming allowed, no credit card purchases)
Hawaii
Nevada
Utah
Reasons to avoid buying lottery tickets with a credit card
Even if state law permits purchasing lottery tickets with a credit card, it may not be a good idea. Here are some reasons to consider keeping your card in your wallet and buying lottery tickets with cash instead.
You’re taking on debt to finance gambling
It’s easy to get sucked into the promise of riches, but using a credit card to buy lottery tickets can be dangerous. If you buy multiple tickets regularly, your yearly costs can quickly snowball. This is especially true if you don’t pay your balance off each month, which means you’ll likely be paying for both the cost of the ticket and any interest charges you accrue.
If you’re in debt and struggling to cover the cost of your gambling, call the confidential National Problem Gambling Helpline at 1-800-GAMBLER (available 24/7/365).
Lottery purchases may be charged as a cash advance
Using your credit card to buy lottery tickets can be risky and expensive, especially if your card issuer treats the transaction as a cash advance. Whether the purchase is classified this way depends on where it’s made and how it’s coded by the merchant. If it is considered a cash advance, interest begins accruing immediately once the transaction posts to your account — as there is no grace period.
Also, cash advances are subject to a higher APR specifically set for such transactions, along with additional fees. This combination of immediate interest, higher rates and fees can make using your credit card for lottery tickets far more costly than it appears. It also increases your risk of accumulating credit card debt, which typically involves compound interest. That means the debt can grow rapidly over time, making it more difficult to pay off.
You may not earn rewards
Depending on how your transaction codes, using a credit card for lottery tickets may not yield rewards for many types of rewards credit cards. This is because reward structures are usually based around points or cash back where gambling isn’t an earning category. You’ll need to check the terms and conditions of your specific credit card to find out whether you’ll earn points or not.
You’ll get a better return by investing or saving
If you want to grow real wealth, investing your money in low-risk assets that offer steady growth is a more effective financial strategy. You can also put your money in a high-yield savings account or even a regular savings account that you can use as an emergency fund to help you cover living expenses during a medical crisis or to pay for a car repair.
The bottom line
Several states permit using a credit card to pay for lottery tickets, though it may not always be wise. Relying on a credit card for lottery purchases can be risky and typically lacks the benefits associated with most credit card transactions.
Before buying lottery tickets with a credit card, ensure that this is permitted in your state. You should also be mindful of extra fees and interest charges. Most importantly, be sure that you don’t use a credit card to feed a gambling problem and that you can pay off your credit card balance each month.
