National Lottery Act of 1986 - Directs the Secretary of the Treasury to establish and operate a national lottery in each State in which such operation is legal. Requires the deposit of 50 percent of lottery receipts into the general fund of the Treasury for the purpose of reducing the Federal debt. Establishes criminal penalties for unauthorized sales of lottery tickets, especially sales of such tickets to minors. Establishes the Lottery Fund for the deposit of receipts to provide prizes for winners, operational costs, and payments to States for their participation in conducting the lottery.