Lottery glossary
77 lottery terms, A to Z. Rules and play options differ between games and states; your state lottery's rules decide for any ticket.
A
- Advance Bet
- As the name implies, this is a ticket that is purchased for a game that will hold later in the future than the subsequent regularly scheduled drawing for the game.
- Annuity option
- A pay-out alternative that some lotteries offer for their biggest jackpots. When a winner chooses this payout option, he receives the jackpot amount over a specified period of time. The period of time is set by the lottery rules and the amount is determined by the size of the jackpot, as well as some economic factors at the time of the win.
- Any Order
- A play option in several games. Here, the player picks a set of digits equal to the number of digits to be drawn in the game. For the player to win, the digits selected by the player can be drawn in any order.
B
- Back Pair
- A play option that allows a player to choose two digits. For the player to win, the last two digits in the game result must match the digits chosen by the player in the exact order.
- Ball
- An object (usually ball-shaped) that is numbered and used in physical drawing machine to randomize lottery results.
- Ball Draw Machine
- The machine that systematically scrambles a set of numbered balls and then draws from that pool in a random manner in order to select the winning numbers for a particular lottery game.
- Bearer Document
- An unsigned financial lottery ticket (or document) that is assumed to belong to whoever possesses it.
- Beneficiary
- An organization or a group that collects a percentage of lottery profits. The lottery commission determines whom the beneficiary would be. The beneficiary could be single or a multiple range of social causes. Examples of lottery beneficiaries include state funding, education, the homeless, the elderly etc.
- Boxed bet
- A play option wherein the player picks a group of digits that are equal to the number of digits to be drawn in the game. The condition for winning is for the player to match all digits in any order.
C
- Cash for Life
- A type of prize paid only in installments, for as long as the winner lives.
- Cash Option
- A one off payment plan that is awarded as a prize to the winner. It is different from the annuity plan that is paid over multiple-year period. Here, the lump-sum value is based on bond rates under which an annuity is bought.
- Commission
- The body that governs the activities of a lottery. The Commission can function in both authoritative and advisory capacities.
D
- Digit Game
- A synonym for a numbers game.
- Draw
- The official act of establishing lottery results.
- Draw Game
- This term is essential because, in several jurisdiction, the term "lottery" consists of raffles and instant games. Draw game is a game of chance in which the winning results are drawn through a randomized procedure.
- Drawing
- The formal event in which the winning lottery digits are drawn for a specific lottery.
- Drawing Format
- The drawing format determines the odds of each wager. It is the number of machines, the field of balls in each machine, and the number of balls drawn from each machine.
- Drawing Results
- The outcome of a formal lottery drawing.
E
- Exact Order
- The opposite of "Any Order". It is a play option in number games that allows the player to select a set of digits equal to the number of digits to be drawn in the game. For the player to win, the digits selected by the player must match the drawing result in the exact order.
- Exotic Game
- A lottery that does not adopt standard format or set of winning conditions.
F
- Fixed Jackpot
- As the name implies, this kind of jackpot does not increase or decrease in the size. This means that they are not dependent on the amount of tickets that have been bought or the outcomes of the previous drawings.
- Fixed Payouts
- The fixed number and amounts of prizes regardless of the number of sold tickets. Usually, this happens for daily number games like Pick 3 and Pick 4.
- Front Pair
- Just like Back Pair, this is a play option in number games where in the player picks two digits and would win when the first two digits in the drawing outcome match the digits the player selected, in the same order.
G
- Game
- This commonly refers to a lottery, a drawing or a wager.
- Group Play
- When a group of game players combine their resources to settle the cost of buying tickets. They also share the winnings together.
H
- Hot Numbers
- Numbers drawn most often during a particular period. This describes past results only; it does not change the odds of any future drawing.
I
- Instant Game
- A lottery in which the results are instantly announced to the player. A good example of an instant game is scratch off tickets.
J
- Jackpot
- The grand prize that can be won in a game.
K
- Kiosk
- A self-service lottery terminal at a retailer. Most kiosks include a number checker that tells players whether a ticket has won.
L
- Lottery
- A law term established by most local jurisdictions. It is a game with three parts for the players: a prize to be won, a chance to win and not win and an element of consideration (such as buying a ticket). It is good to keep in mind that lottery games include games such as: draw games, instant games and raffles.
- Lottery commission
- The board that oversees a lottery organization. Its members are usually appointed by the state's governor.
- Lotto
- Lottos usually have large jackpots. A lotto uses a single ball draw machine containing "Y" balls and the order in which the balls are drawn is not part of the terms of winning. Also, Lotto games offer only one play option with several winning conditions. Keep in mind that certain individual lotteries with the name of lotto may not conform to this definition.
- Lump sum
- It can also be called cash option. It is a single prize payment that is different from annuity payments. The value of the lump-sum is based on the bond rates used to buy an annuity.
M
- Market name
- The public name of a special lottery game or elements of a lottery game to avoid confusions. Market names are used to differentiate the games from each other. For example: Illinois plays a "Pick 3" number game while Indiana operates a "Daily 3" number game.
- Minimum jackpot
- The starting amount a progressive jackpot resets to after it is won.
- Multi-draw
- An opportunity for players to play the same numbers in multiple future drawings.
- Multi-jurisdiction lottery
- A lottery game sold in more than one jurisdiction. Pooling sales lets these games offer bigger jackpots than one jurisdiction could alone, and the prize is shared across all of them. Examples include Powerball, Mega Millions and Lotto America.
- Multiplier
- An add on game feature in which the payout is picked through a random process before the game is drawn. Note that progressive jackpots are never multiplied.
N
- Number checker
- Number checker is a device for comparing a player's selected numbers with the drawing results.
- Number generator
- A tool for making a selection for a particular lottery. A large percentage of number generators pick a number from the set of all possible options.
- Numbers game
- A form of lottery in which 2 to 5 balls machines each draw a single ball numbered between 0 and 9. These games usually provide a plethora of play options. Examples are pick 3 and daily 4.
O
- Odds
- The ratio between the chances of winning a prize and not winning it. The odds of a given prize are fixed: they are the same for every drawing.
- Office Pool
- A lottery pool that is operated within a group of co-workers. These types of pools have special legal considerations.
P
- Pari-mutuel
- Pari mutuel is a game in which jackpots prizes are shared equally and given to a large number of players with winning tickets. Take the power ball game for an example; it is a Pari- mutuel game so if there are two winning tickets for a jackpot prize for the same drawing, the total jackpot prize(amount) will be equally shared between the two winning tickets.
- Passive game
- A game in which decisions are not needed by the players of this game. All they need is to buy a ticket.
- Payback Rate
- Usually, Payback rates for numbers games are 50-60%. It refers to the percentage of gross lottery revenue that is paid back on average.
- Payout option
- Alternatives in which a lottery winner chooses how they want to receive their prize. The common pay-out options are lump-sum pay-out and annuity pay-out.
- Payout table
- A list of prizes related to each winning condition for a certain lottery.
- Play slip
- A play slip is a form which a player fills to pick their play alternative, additional features and numbers. It is typically scanned into a retail lottery terminal which consequently generates a ticket.
- Player
- Simply a person who buys or owns a lottery ticket.
- Pool
- Group of lottery players who contribute funds to buy tickets which are owned by the contributors. The winnings are usually divided within the group of players agreed on a convention.
- Primary game
- The normal wager offered in a lottery. Usually, the primary game must be bought before a player is allowed to buy any extra options.
- Prize
- Any gift or valuable award that a winner is given in a lottery game. Such awards may include vacations, free tickets and cash prizes.
- Progressive Jackpot
- Progressive jackpot is a jackpot that increases when there is no winning ticket. Progressive jackpots usually have a low value that the jackpot is reset to immediately the jackpot is won.
Q
- Quick Pick
- A situation where the lottery kiosk or terminal chooses the numbers randomly for a player.
R
- Raffle
- A game of chance in which the winner is drawn from all entries through a random process. The difference between raffles and draw games is that a winner will always emerge in raffles. Also, the odds of a particular ticket being drawn is determined by the number of participants.
- Random number generator (RNG)
- A secure, programmed system that draws numbers at random. Some jurisdictions use it instead of a ball draw machine for some or all of their games.
- Retailer
- A person or vendor who has been authorized to sell lottery tickets. Usually, retailers are empowered to also pay out lottery prizes that are within a specific cash range.
- Rollover
- The progressive accumulation of a jackpot when drawn numbers are not matched by any ticket that has been sold.
S
- Second Chance Drawing
- Here, non-winning lottery tickets are enabled to win prizes other than those offered in the primary game. In most cases, Second Chance Drawings make use of the entrant's original selection in a drawing that generates a fresh drawing result.
- Second-tier Prize
- A lesser value prize that is offered in a lotto or bonus lotto game when the player qualifies easy winning terms. Usually, the prizes that are given out as Second-tier prizes are mostly fixed irrespective of whether the jackpot is increasing or fixed.
- Secondary Game
- An extra feature of the lottery that is excluded from the primary game. It is however available at no charge.
- Selection
- The numbers that have been selected by a player and indicated on their tickets.
- Split Pair
- A play alternative that is provided for in number games. Here, the player is expected to pick two digits. For a player to win, the first and last digits in the drawing result must match the digits that have been chosen by the player, in the exact order.
- Straight
- A play alternative in number games wherein the player picks a set of digits that is equivalent to the number of digits to be drawn in the game. For a player to emerge as winner, the digits picked by the player must match the drawing result in the exact arrangement.
- System
- A way of buying many number combinations at once, often as part of a pool. It covers more combinations, but each ticket keeps exactly the same odds.
T
- Terminal
- An electronic device that is utilized by lottery retailers. They use it for several functions like checking results, printing tickets and managing payouts etc.
- Ticket
- A bearer document that shows evidence of entry. It contains necessary information such as the players selected numbers, the play options selected and the drawings which the player has entered.
U
- Unclaimed prize
- A winning ticket that was legally sold but not claimed before its claim period ended.
- Underdrawn
- Also called cold or overdue numbers: numbers drawn less often than expected over a period. A number is never “due” — every drawing is independent.
V
- Validation
- Validation is a gradual process which every lottery ticket passes before confirming that it is a winning ticket and has not been claimed before and the prize amount is correct.
W
- Wager
- A conclusion reached by two parties to use the result of an unsure events to determine a financial agreement between the parties. The rules and regulations of the financial agreement are established before the unexpected events happens.
- Ways
- A word used in number games. It makes reference to the play options of wheel or box. With this policy, a player wins if the numbers selected all appear in any order. There are multiple ways which the winning conditions can be met. Example if a player selects 1-2-3 in a three-ball numbers game and chooses the box play option there are six ways they can win.
- Wheel
- In number games, a play option where the player picks as many digits as are drawn and wins if they come up in any order. It has the same winning condition as a boxed bet, with different prizes.
- Wheel lotto games
- A way for buying tickets in a bonus or lotto game in which the player chooses all combinations possible of a subset of the field of numbers.
- Winner
- A winner is the owner of a valid ticket whose selection meets the winning conditions of a lottery game.
- Winning conditions
- The conditions which a players selection qualifies for a prize. There are several conditions to be qualified as a winner for example; in lotto and bonus lotto games a single ticket may have multiple winning conditions which doesn't exclude those that are needed to win second-tier prizes or to win the Jack-pot.