The Lottery was established under the authority of Public Act 239 of 1972 to generate funds to support Michigan’s public school system. The first lottery ticket was the Green Ticket which went on sale on November 13, 1972. On October 7, 1975, the first instant game ticket was sold. Online sales began June 6, 1977 with the introduction of the Daily 3 game. The first multi-state ticket sales for the Lottery were on August 31, 1996 for The Big Game (now called Mega Millions). Since its inception, more than $14.5 billion has been contributed to the School Aid Fund.
The Lottery offers a variety of games in several styles of play: instant also known as “scratch” games; online games, where daily or more frequent drawings are conducted to select winning numbers; and Pull Tabs, which are similar to instant games but players pull a perforated tab instead of scratching off the ticket. These games are available to the playing public through more than 10,000 licensed Lottery retailers.
Instant games are played by scratching latex covering on each ticket to reveal prize symbols. A variety of games with different themes, play styles, price points and prize structures are available with an ongoing product offering of over 70 new games a year. The games offered are priced between $1 and $20 and prizes range from $1 to $2 million dollars.
Online game tickets are generated by a terminal connected to a central system and drawings are conducted to determine the winning numbers. Drawings are every four minutes, twice a day, daily, or twice a week, depending on the game. Online games currently offered are Mega Millions, Classic Lotto 47, Fantasy 5, Daily 3, Daily 4, Keno, Raffle, and Club Keno and are played as follows:
Mega Millions is a multi-state online game, formerly known as The Big Game. Players select from two pools of numbers: five numbers between 1 and 56 and one number between 1 and 46 for a chance to win a multi-million dollar jackpot prize. The jackpot starts at $12 million. This game offers nine ways to win with guaranteed prize amounts on lower prize levels. Drawings are conducted twice a week.
A total of 12 states participate in the Mega Millions game with Michigan, including California, Georgia, Illinois, Maryland, Massachusetts, New Jersey, New York, Ohio, Texas, Virginia and Washington.
Classic Lotto 47
Classic Lotto 47 is an in-state Lotto game. It was introduced May 15, 2005 and replaced the Winfall game. Players select 6 of 47 numbers in twice weekly drawings. Jackpots start at $1 million. Classic Lotto 47 offers four ways to win, with guaranteed prize amounts at the lower prize levels. Drawings are held every Wednesday and Saturday at 7:29 p.m.
Fantasy 5 was introduced September 12, 2004, replacing the Rolldown game. Players pick 5 of 39 numbers, with rolling jackpots starting at $100,000 and daily drawings. Jackpots increase a minimum of $5,000 per draw and roll until a player matches all five numbers in a drawing. This game offers four ways to win with guaranteed prize amounts at the lower prize levels.
Daily 3 & 4 Games
The Daily 3 & 4 games are the Lottery’s longest running and most consistently popular games, representing 30% of total sales. Drawings are conducted twice a day, seven days a week. These games offer a wide variety of winning combinations and fixed prizes. The top prize for Daily 3 is $500; for Daily 4, $5,000.
Keno! is another long-running game which started in 1990. Although the sales are less than 1% of total sales, it has a very strong and loyal player base. In this game, players chose 10 numbers from a pool of 80. The Lottery draws 22 numbers and if the player matches 10 of those 22 numbers, they win the jackpot prize of $250,000. There are also five other ways to win by matching combinations of the numbers drawn. Drawings are conducted daily.
The first online Raffle game, introduced on November 12, 2006, was Millionaire Raffle and Super Raffle was added in April 2007. Each Raffle has a defined and limited pool of tickets available for sale. Each ticket purchased contains a unique raffle number issued sequentially across the on-line gaming system network. When the last raffle number is issued, the game will close and no additional tickets will be available for purchase. The prizes range from $500 to $2 million.
Club Games were introduced in October 2003. Club Games are played by patrons of bars, restaurants and bowling centers. Club Games consist of an online Club Keno game, Lucky Streak and Pull Tab games. To play Club Keno, players select up to 10 numbers from a pool of 80. The Lottery draws 20 numbers and the more numbers the player matches, the more he or she wins. Results of the drawings, which are conducted every four minutes, are displayed on TV monitors located in the retailers’ establishments. Wagers can be placed from $1 to $20 and the top prize is $2 million. The Kicker option allows players to multiply their Club Keno prizes as much as 10 times.
Lucky Streak was discontinued in February 2008. Pull Tab games are similar to instant tickets but players pull a perforated tab instead of scratching off the ticket. A variety of different Pull Tab games are offered at one time. Ticket prices are 50 cents, $1 and $2 and top prizes range from $50 to $500.
Player City Internet Club
In June 2005 the Lottery introduced an Internet-based VIP club for players called Player City. Player City offers a variety of on-site activities in which players can participate. Points are earned for participation in surveys and other activities and these points are redeemable for entry into drawings for event tickets and other prizes. In addition, players who become members receive many benefits such as special prize drawings, exclusive offers only for Player City members, anniversary rewards redeemable for exclusive members-only rewards, and email alerts for jackpots and winning numbers. Membership in Player City is free.
Where Does the Money Go?
The School Aid Fund is a restricted fund that can only be used for education. Lottery revenues comprise roughly of 6% money transferred to the fund. The other 94% of the money coming to the School Aid Fund stem from the state's sales and use tax, earmarked income tax and state education property tax, as well as cigarette, liquor and other taxes.
Facts About the Michigan Lotery
The lottery retailers received annual commissions of $172.7 million in 2007, while Michigan Lottery players collected prizes worth $1.32 billion. Lottery's total to schools to over $14.3 billion in 35 years including more than $600 million in eight of the past 10 fiscal years.
In addition to contributing billions of dollars to education, the Lottery has made 775 millionaires, with prize payments totalling at $4 billion! Overall, in 35 years, the Lottery has paid $20.5 billion in prizes and $2.6 billion in retailer commissions.
Where to Claim Michigan Lottery Prizes
Cash prizes worth up to $600 may be claimed at any Michigan Lottery retailer. Due to strict security and validation procedure, Michigan Lottery winners of prizes greater than $50,000 are required to claim their prize at Lottery Headquartess at 101 E. Hillsdale in Lansing, MI state. Winners will need to have a picture identification, such as a driver's license, and Social Security card in order to claim their prize. In some cases, Michigan Lottery prizes can be claimed by mail. To claim a prize by mail you will need to send a request for payment including your name, address and signed ticket along with a copy of your Social Security card and photo identification, such as a driver's license.
Do I have to Pay Any Taxes?
Michigan Lottery prizes are subject to federal, state and local income taxes. You may be required to make estimated tax payments by filing a form 1040ES with the Internal Revenue Service.