The Louisiana Lottery Corporation was created in 1991 after state legislature the previous year proposed a state lottery as a vehicle for generating revenue without increasing taxes, with a public vote passing by 69% to 31%. The Lottery’s first instant scratch-off game, Louisiana Treasures, went on sale on 6 September 1991. The first draw-styled jackpot game, Lotto, began on 22 January 1992 with a $2m jackpot.

The Lottery statute declares that 35% of all Lottery revenues must be given to the state treasury. As of 1 July 2004 Lottery proceeds are earmarked for the Minimum Foundation Program which funds K-12 public education in the state. A total of $500,000 is also put towards the funding of Louisiana problem gambling programs. As of July 2011 the Louisiana Lottery had given more than $2.4bn to the state treasury, including over $136.3m in the fiscal year 2011.