A look at state lotteries versus provincial ones
In North America and across the globe, lotteries generally fall into two categories: Country-Wide (National) games and State or Provincial games. While they both involve picking numbers and hoping for the best, the mechanics of these two systems differ wildly in terms of prize pools, odds, and where the money actually goes.
National or Regional
The most visible difference between a national lottery and a regional one is the actual size of the jackpot. This is a simple matter of economics: liquidity. In the United States, games like Powerball and Mega Millions are de facto national lotteries. They aggregate ticket sales from 45 states, D.C., and territories. In Canada, Lotto Max and Lotto 6/49 are played coast-to-coast. Because the player pool involves tens of millions of people, the jackpots can swell into the billions.
State and Provincial lotteries are "homegrown" games. Think of Texas Two Step, Ontario’s Lottario, or Florida’s Fantasy 5.4 Because these games are restricted to residents (and visitors) of a single state or province, the ticket sales are lower, meaning the jackpots rarely exceed a few million dollars.
There is a direct trade-off in the lottery world: The bigger the prize, the harder it is to win.For a player, the choice is strategic. Playing a country-wide lottery is like trying to hit a specific grain of sand on a vast beach. Playing a state-level "Pick 5" game is more like trying to find a specific seat in a large stadium. You are far more likely to see a win in a regional game, even if that return isn't "quit your job forever" money.
One of the most significant distinctions is how the "rake"—the portion of ticket sales not paid out in prizes—is used. Sttate and provincial lotteries are often created with a specific legislative mandate. In the U.S., these funds are frequently earmarked for education (like the Hope Scholarship in Georgia) or senior citizens (like in Pennsylvania). In Canada, provincial corporations like Loto-Québec or the Ontario Lottery and Gaming Corporation (OLG) return billions to the provincial treasury to fund healthcare and community infrastructure.
National lotteries (especially in North America) are usually run by a consortium. In the U.S., the Multi-State Lottery Association (MUSL) coordinates Powerball. Each participating state still gets to keep the profit from the tickets sold within its borders. However, in many European or Asian countries, a true National Lottery exists where the central government manages the funds. For example, the UK National Lottery distributes its "Good Causes" fund to arts, sports, and heritage projects across the entire country, regardless of which city the ticket was purchased in.
The "Country-Wide vs. State" debate takes a sharp turn when the tax man arrives. Canada and the UK: Lottery winnings are generally tax-free. Whether you win $5 on a provincial scratcher or $70 million on Lotto Max, you keep every penny. In the United States, winnings are subject to Federal taxes (usually a 24%–37% bite). Furthermore, if you play a state lottery, you are subject to State income tax. Some states, like California or Delaware, do not tax state lottery winnings, while others, like New York, take a significant additional cut.
Regional lotteries often feel more "communal." They sponsor local festivals, provide commissions to "mom-and-pop" convenience stores, and feature winners from the local neighbourhood. This local tie makes them a more stable, albeit smaller, source of revenue.
Country-wide lotteries, conversely, are "event-driven." When a Powerball jackpot hits $1 billion, "lottery fever" takes over. People who never play the lottery suddenly line up at gas stations. While this generates massive short-term revenue, it also attracts criticism for being a "regressive tax" on the poor, as lower-income individuals spend a higher percentage of their earnings on tickets during these hype cycles.
Your interpretation of the best lottery to play depends entirely on your goal as a player. If you want the best chance to win something, stick to State or Provincial games. The odds are significantly more in your favour, and the "second-tier" prizes are often more attainable. If you are "dreaming big", the Country-Wide lotteries are the only way to reach billionaire status. The odds are astronomical, but the reward is world-changing.
For the governments involved, both are essential. State lotteries provide a steady, predictable stream of income for local projects, while national games provide the massive "jackpot surges" that keep the public engaged with the lottery system as a whole.