National Lottery Act

National Lottery Act - Directs the Secretary of the Treasury to establish and operate a national lottery. Requires the Secretary to report to Congress every six months, providing: (1) the total revenues and expenditures of the lottery; and (2) recommendations by the Secretary for any needed changes in this Act. Requires regulations concerning such lottery to be issued within one year after enactment of this Act by the Secretary and operation of such lottery to begin as soon as practicable.

Directs the Secretary, upon a certain finding of financial responsibility and general fitness of character, to issue licenses to persons to sell national lottery tickets. Denies the issuance of such licenses to specified classes of people.

Sets forth criminal penalties for: (1) the sale of lottery tickets at unauthorized prices; (2) the sale of such tickets to persons under the age of 18; (3) the sale of forged or counterfeit lottery tickets; and (4) fraud with respect to the national lottery.

Establishes a National Lottery Trust Fund. Requires the Secretary to invest such portion of the Fund not required to meet current withdrawals. Provides that amounts in the Fund shall be available only for: (1) establishing and operating the national lottery; (2) paying lottery prizes; (3) contributing to the Federal Old Age and Survivors Insurance Trust Fund and the Federal Hospital Insurance Trust Fund; and (4) reducing the principal on the Federal debt.

Sets the maximum amount of the Fund to be used for establishment and operational costs of the lottery at ten percent, and the minimum amount to be used for paying lottery prizes at forty percent. Requires not less than forty percent of Fund amounts, in equal shares, to be: (1) deposited in the Federal Old Age and Survivors Insurance Trust Fund; (2) deposited in the Federal Hospital Insurance Trust Fund; and (3) used to reduce the principal on the Federal debt.

Authorizes appropriations to the Fund for FY 1986.