Some states allow these purchases, but you're gambling with cash advance fees and interest that starts accruing immediately after your purchase.
Published Apr 19, 2023 12:35 p.m. PDT · 2 min read Written by Craig Joseph Lead Writer Craig Joseph
Lead Writer | Credit cards, Travel rewards, Personal finance
Craig Joseph is a NerdWallet credit cards and travel rewards expert. He has degrees in geology from West Virginia University and oceanography from Oregon State University and has published in academic journals, newspapers and blogs. Craig is passionate about personal finance and wants to enhance the financial literacy of everyone he meets. He'll probably also try to convince you why rocks are cool.
Erin Hurd
Credit cards, rewards, personal finance
Erin is a former writer and assigning editor on the NerdWallet Content team who now heads NerdWallet's travel business. She's a credit card and travel rewards expert at NerdWallet, based in Baltimore, Maryland. She has spent nearly two decades showing readers unique ways to maximize their investments and personal finances. Prior to joining NerdWallet, Erin worked on dozens of newsletters and magazines in the areas of investing, health, business and travel with Agora Publishing. Her love of travel led to a passion for credit card and loyalty rewards to subsidize trips, and she thrives on teaching others how to harness the power of credit card rewards. When she's not helping NerdWallet readers find the best travel value, Erin is planning her next adventure for her family of four using points and miles.
Fact Checked
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Get your numbers ready. From Powerball and Mega Millions to scratch-offs and pull-tabs, lotto players spent a whopping $80.1 billion dollars in 2020 across the 45 states that administer a lottery, according to the United States Census Bureau. Of those states, 23 legally allow lottery tickets to be purchased with a credit card.
But as the saying goes, just because you can doesn’t mean you should.
A lottery ticket purchased with a credit card is likely to be processed as a cash advance , which comes with high fees and starts to accrue immediate interest. Gambling on credit can also lead to debt if you fall behind on your card payments. This is why 22 states (and the District of Columbia) legally prohibit the use of credit cards for lottery purchases.
Here’s what you need to know about buying lottery tickets with a credit card.
There are 5 states — Alabama, Alaska, Hawaii, Nevada and Utah — that do not offer government-operated lotteries or participate in interstate drawings like Powerball or Mega Millions.
A total of 23 states permit the purchase of lottery tickets with a credit card. However, even if a state allows it, you’ll still have to find a lotto retailer that accepts credit cards as a form of payment. That means it may not be as easy as walking into your local grocery store or gas station and reaching for your card for your chance at that next lottery jackpot .
The remaining 22 state lotteries that don’t allow credit card payments vary from accepting only cash to allowing many other forms of payment, including debit cards, gift cards, checks and even PayPal.
States that allow lottery purchases with a credit card California. Mississippi. New Hampshire. New Jersey. Pennsylvania. Rhode Island. South Dakota. West Virginia. States that don't allow lottery purchases with a credit card Connecticut. Massachusetts. New Mexico. North Carolina. North Dakota. South Carolina. Washington.Most credit card issuers don’t have explicit rules against using a card for lottery products. However, even if a lotto retailer accepts credit card payments, card issuers like Chase, Citi and Bank of America may process the transaction as a cash advance, which increases the dangers of gambling on credit:
The annual purchase rate , or APR, is usually much higher on cash advances than for purchases.There is no grace period , so interest starts accruing as soon as the transaction posts to your account.
You’ll be charged a cash-advance fee, which can be as high as 5% of the total transaction amount. Ready for a new credit card?Create a NerdWallet account for insight on your credit score and personalized recommendations for the right card for you.
GET STARTED
Probably not. Credit card issuers don’t dole out rewards for transactions that process as cash advance. That means swiping your plastic for scratch-offs most likely won’t earn cash back, points or miles. Cash advances also do not count toward the spending requirements to earn a lucrative sign-up bonus on a new card.
Any form of gambling on credit can lead to debt. Whether it's sports betting or playing the lottery, it's important to remember the chances of winning money are less than not winning, so never play with money you don't have.
Plus, you're likely to incur cash-advance fees and high APR interest as soon as you make the purchase with a credit card. The odds are stacked against you coming out ahead after accounting for the cost of the ticket plus fees and interest.
About the authorYou’re following Craig Joseph
Visit your My NerdWallet Settings page to see all the writers you're following.
Craig Joseph is a NerdWallet authority on credit cards and travel rewards. His work has been featured by The Associated Press, Washington Post, San Francisco Chronicle, Nasdaq and Yahoo Finance. See full bio.
On a similar note.
Download the app
QR code for downloading the app" width="150" height="150" />
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product's site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution's Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
NerdUp by NerdWallet credit card: NerdWallet is not a bank. Bank services provided by Evolve Bank & Trust, member FDIC. The NerdUp by NerdWallet Credit Card is issued by Evolve Bank & Trust pursuant to a license from MasterCard International Inc.
Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
NerdWallet Compare, Inc. NMLS ID# 1617539
California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812
Insurance Services offered through NerdWallet Insurance Services, Inc. (CA resident license no.OK92033) Insurance Licenses
NerdWallet™ | 55 Hawthorne St. - 10th Floor, San Francisco, CA 94105
