The Birthplace of Powerball
The Iowa Lottery is one of the most historically significant lotteries in the United States. Established in 1985 after voters approved the Iowa Lottery Act, it became a pioneer in multi-state lottery games. Iowa was a founding member of the Multi-State Lottery Association (MUSL), headquartered in Urbandale, Iowa, which would go on to create some of the most popular lottery games in the world.
From Lotto America to Powerball
In 1988, Iowa helped launch Lotto America, one of the first multi-state lottery games in the country. This groundbreaking game proved that states could pool their resources to offer larger jackpots. In 1992, Lotto America was redesigned and relaunched as Powerball — a game that would become a national phenomenon. The original Lotto America name was revived in 2017 as a separate game with a new format.
Revenue and Mission
Unlike many state lotteries that dedicate revenue to a single cause, Iowa's lottery proceeds support a broad range of state programs. Revenue goes to the Iowa Veterans Trust Fund, the General Fund (supporting education and other state services), and economic development initiatives. The state levies a 3.8% tax on lottery winnings, one of the lower rates in the country.
Key Milestones
- 1985: Iowa Lottery established; first tickets sold August 22
- 1986: First online draw game (Lotto) begins
- 1988: Iowa co-founds Lotto America, one of the first multi-state lottery games
- 1992: Lotto America redesigned and relaunched as Powerball
- 2003: Mega Millions becomes available through the cross-selling agreement
- 2010: Iowa Lottery begins selling tickets online
- 2017: Lotto America relaunched as a separate multi-state game
- 2026: Millionaire For Life added to the Iowa game lineup
MUSL Headquarters
The Multi-State Lottery Association (MUSL) is headquartered in Urbandale, Iowa, making the state the administrative center of Powerball and other multi-state games. MUSL coordinates game rules, prize pools, and drawings for member lotteries across the country. This connection gives Iowa a unique place in American lottery history.
Impact and Legacy
The Iowa Lottery has grown from scratch-off tickets to a full suite of draw games, instant games, and online play. Its role in creating both Lotto America and Powerball makes it arguably the most influential state lottery in U.S. history. For a full breakdown of every current game, see our Iowa Lottery Games Guide, or visit the Iowa lottery dashboard for live results and analysis.
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