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"Gamble" is defined as playing games of chance for money. Under the guise of providing funds for state programs, the lottery was established and has operated for years, growing substantially over time. Different states uses some of the money collected for different purposes... Click Here. The Powerball is in 45 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands as well. It is overseen by the Multi-State Lottery Association (MUSL). Lotteries are only illegal in Alabama, Alaska, Hawaii, Nevada (for obvious reasons), Utah, and the American Samoa at this time. Lotteries are gambling, after all, and a derivative of numbers running. Most states have legalized some form of gambling if one is able to procure an expensive gaming license. It appears that only corporations and the very powerful can skirt laws that make gambling illegal for the average Joe. Gambling makes obscene amounts of money - 92.27 billion dollars was the gross figure in 2008 alone. A private poker game held in your home is illegal if money is exchanged. The legalization of gambling might mean a steep decline in revenue for states nationwide.