Abstract: A method for providing telephone service and cooperatively promoting the sale of telephone usage services by a telephone service provider and the sale of goods and/or services such as lottery tickets associated with a lottery game by a lottery service provider. A phone card in accordance with the invention has a substrate such as paper, paperboard or plastic, a personal identification number (PIN) which can be covered by a removable opaque coating and machine readable indicia such as a bar code or magnetic strip used to activate the telephone card in a secure fashion and/or link the phone card to a lottery game such as a state run Pick 4, Pick 6, instant win game or the like. Users purchase the pre-paid phone card for a fixed fee which entitles the user to a set amount of long distance phone service and a promotional lottery ticket. The phone card is activated and a lottery ticket is issued at a lottery agent terminal.