Auto Lottery Cross-State Gaming Laws Quiz

1. What is the federal law that prohibits importing or transporting lottery tickets?

• 18 U.S.C. § 1301
• 26 U.S.C. § 501
• 10 U.S.C. § 3001
• 15 U.S.C. § 750

2. What is the penalty for violating 18 U.S.C. § 1301?

• 1 year in prison and no fine.
• Up to 2 years in prison and a fine.
• Only a warning is issued.
• 5 years in prison and a large fine.

3. What is considered a federal crime under 18 U.S.C. § 1301?

• Bringing into the U.S. or transporting unauthorized lottery tickets.
• Selling lottery tickets without a license.
• Conducting a private lottery without registration.
• Ignoring state lottery regulations.

4. What are some examples of activities that violate 18 U.S.C. § 1301?

• Hosting a state lottery event.
• Selling authorized lottery tickets.
• Playing state lotteries in other states.
• Buying lottery tickets for someone out-of-state who is not authorized.

5. Can you be charged under 18 U.S.C. § 1301 if you didn`t know the tickets were unauthorized?

• No, you must have knowingly imported or transported unauthorized tickets.
• No, you can claim lack of knowledge as a defense.
• Yes, ignorance of the law is no excuse.
• Yes, you can be charged regardless of intent.

6. Are state lotteries legal in the U.S.?

• No, they are illegal everywhere.
• Yes, but their legality varies by state.
• Yes, but only for online sales.
• No, they are allowed only in specific cities.

7. How many jurisdictions run lotteries in the U.S.?

• Approximately 48 jurisdictions, including 45 states and three territories.
• 50 jurisdictions, including all states and Puerto Rico.
• 30 jurisdictions, primarily in the Midwest.
• 35 jurisdictions, including territories only.

8. What is the main purpose of state lottery laws in Michigan?

• To restrict all forms of gambling statewide.
• To generate revenue for state education programs and compulsive gaming prevention.
• To promote international lottery ticket sales.
• To fund private lotteries and gambling establishments.

9. What happens to lottery prizes in Michigan if not claimed within a year?

• The prizes are forfeited and deposited into the state school aid fund.
• The prizes are rolled over to the next lottery.
• The prizes are donated to charity organizations.
• The prizes are kept in a separate account for future winners.

10. What activities are prohibited in Michigan state lottery laws?

• Offering discounts for bulk purchases.
• Selling tickets to adults only.
• Selling tickets without a license.
• Sales to minors, sale at a greater price, unauthorized sales, and forged or altered tickets.

11. How are winning numbers for Colorado`s in-state jackpot games generated?

• Using Automated Drawing Machines (ADM) with Random Number Generators (RNG).
• By using a manual drawing process with numbered balls.
• By randomly assigning numbers through an online lottery platform.
• By selecting numbers through public votes conducted weekly.

12. Where are the ADM machines for Colorado`s jackpot games located?

• In Pueblo, Colorado.
• In Boulder, Colorado.
• In Colorado Springs, Colorado.
• In Denver, Colorado.

13. What are the specific games played in Colorado?

• Super Lotto, Mega Cash, Daily Draw
• Colorado Lotto+, Cash 5, and Pick 3
• Lucky Numbers, High Stakes, Quick Pick
• Jackpot Mania, Power Play, Instant Win

14. When did Colorado start selling Powerball tickets?

• July 1, 1999
• August 2, 2001
• June 10, 2005
• September 15, 2003

15. How many states participate in the Powerball game?

• 30 states and two territories.
• 50 states and territories.
• 45 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
• 40 states, Guam, and Canada.

16. When did Colorado start selling Mega Millions tickets?

• April 25, 2012
• September 9, 2018
• January 1, 2005
• May 16, 2010

17. How many states participate in the Mega Millions game?

• 44 states and Washington D.C. only.
• 50 states and territories.
• 46 states, Washington D.C., and Puerto Rico.
• 48 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.

18. When did Colorado start selling Lucky for Life tickets?

• January 1, 2015
• July 17, 2016
• August 2, 2001
• May 16, 2010

19. How many states participate in the Lucky for Life game?

• 26 states
• 22 states
• 18 states
• 30 states

20. What happens to lottery prizes in terms of federal and state income tax?

• Lottery winnings are only taxed at the federal level, not by the states.
• Prizes are subject to federal and state income tax, regardless of whether they are cash or annuity prizes.
• Only cash prizes are taxed, while non-cash prizes remain tax-free.
• Prizes are tax-free up to $5,000 and taxed at a flat rate thereafter.

21. How is the duration of paying top prizes determined for a single wager?

• Payments are based on the game`s overall revenue generation.
• The winner`s age determines how long payments last.
• The prize duration is fixed at 10 years regardless of the winner.
• The measuring life of the top prize winner is used.

22. What is the purpose of the 961 CMR 2.00 regulations in Massachusetts?

• To prohibit all forms of gambling within the state.
• To define and regulate the operation and administration of the Massachusetts State Lottery.
• To increase the prices of lottery tickets sold in Massachusetts.
• To create new types of lottery tickets for national sales.

23. What happens if you try to access the 961 CMR 2.00 regulations in Massachusetts?

• The page is forbidden due to lack of access.
• You can download the regulations for free.
• The page redirects to a different site.
• You will receive a penalty charge.

24. What are some common legal defenses for violating 18 U.S.C. § 1301?

• Stating that all lottery tickets are legal in federal law.
• Asserting that the tickets were bought for a friend.
• Claiming ignorance of lottery laws in general.
• Arguing that you didn`t know the tickets were unauthorized or that lottery tickets are legal in your state.

25. Can private lotteries operate in addition to state-run lotteries?

• Yes, some states allow private lotteries in addition to state-run lotteries.
• No, only state lotteries are permitted.
• Yes, but only with federal approval.
• No, private lotteries are banned everywhere.

26. What is the legal definition of a lottery in the U.S.?

• A lottery is defined as a game of pure chance without any payment.
• A lottery exists when a person must pay for a chance to win a prize.
• A lottery occurs when players compete against each other without needing to pay.
• A lottery is when participants receive prizes for free without any requirement.

27. What are the elements required for a gambling scheme to be considered a lottery?

• Skill, luck, and a reward.
• Entry fee, patronage, and a benefit.
• Payment, chance, and a prize.
• Donation, agreement, and a chance.

28. What are some examples of prizes in lotteries?

• Lottery subscriptions, online courses, smartphone apps, or magazine subscriptions.
• Concert tickets, movie passes, gym memberships, or gift cards.
• Free meals, fashion accessories, aquarium passes, or coffee vouchers.
• Cash prizes, vacations, new vehicles, or new houses.

29. How are winning numbers for multi-state games like Powerball and Mega Millions generated?

• Generated by public voting on the numbers each week.
• By drawing numbers from a traditional hat filled with tickets.
• Using Automated Drawing Machines (ADM) with Random Number Generators (RNG) in designated locations.
• Using a random selection process conducted by state officials.

30. Where are the ADM machines for multi-state games like Powerball and Mega Millions located?

• In Las Vegas, Nevada.
• In designated locations such as Rocky Hill, Connecticut, for Lucky for Life.
• In Miami, Florida.
• In Chicago, Illinois.