Multi-state lotteries like Powerball and Mega Millions operate through partnerships among various state lottery organizations, pooling ticket sales across participating states to generate larger jackpots. These lotteries are managed by groups such as the Multi-State Lottery Association (MUSL), which oversees the games, coordinates drawings, and ensures fairness. The combined sales from multiple states create significantly higher prize pools, making these lotteries especially popular due to the massive potential payouts. Participating states share in the revenue from ticket sales, while a portion of the funds is used to support state programs, contributing to education and public services.