Did you know that nearly half of all Americans buy at least one lottery ticket each year? In fiscal year 2023, lottery sales topped $113.3 billion. But where does all that lottery money go in the U.S? Is it just for lottery prizes?
Well, actually, between 50% and 60% of lottery revenue goes directly to winners in the form of prizes. After that, about 5% goes to commissions for the retailers who sell the tickets, and about 10% is used to cover the administrative and operating costs of the game. That’s for paying salaries, advertising, and other expenses.
However, a significant portion of the revenue is allocated to state programs. These programs include public education, services for veterans, environmental initiatives, and other valuable causes.
Want to learn more about this topic? Today we’re going to analyze how lottery money is distributed in each U.S states!
Where does U.S Lottery money go? A state-by-state breakdown.
Throughout the 17th and 18th centuries, lotteries weren’t seen as a vice, but rather as a source of revenue for the states. Most of the money raised was used to build schools, roads, universities and hospitals across the country. Today, the lottery still plays a valuable role in supporting state development while providing entertainment for the people.
Are you interested in the world of games of chance? Well, maybe you’d like to learn more interesting facts like these about the lottery.
As mentioned above, a significant portion of the Lottery’s revenue goes to the participating states. The distribution depends on ticket sales, meaning that states that sell more tickets receive a higher percentage of the revenue.
Each state has the autonomy to determine how to distribute the money generated from lottery ticket sales. While each state may have its own unique approach, there are some common themes among the states. These include education, public health, crime prevention, and other public services.
Here’s a breakdown of each U.S state lottery and the social causes they support with the money they raise.
What does the Arizona Lottery invest its money in?
- Higher Education,
- Health and human service
- Heritage Fund
- Protection and Safety
- Commerce Authority Arizona Competes Fund
- Court Appointed Special Advocate Fund (Unclaimed prizes)
- Homeless Shelters
- Environmental Conservation
- Mass Transit
- Automation Projects Fund
- University Bond Fund
- Internet Crimes Against Children Victims
- Tribal College Dual Enrollment Program
Arkansas Lottery winnings go to…
- Educational Trust Fund
California Lottery money goes to…
- Education
Colorado Lottery distributes its lottery funds to…
- School Fund
- Division of Parks and Wildlife
- Conservation Trust Fund
- Division of Parks and Outdoor Recreation
- Great Outdoors Colorado Trust Fund
Where does the Connecticut Lottery money go?
- General Fund (as in other states, this money supports education, roads, health care and hospitals, and public safety in the state).
Delaware Lottery funds are distributed to…
- General Fund
- Agriculture-Problem Gambler Programs
- Health & Social Services
District of Columbia Lottery winnings go to…
- General Fund
Florida Lottery funds go to…
- Education Enhancement Trust Fund
The Georgia Lottery invests the money in…
- Lottery for Education Account
- Pre-Kindergarten Program
How does the Idaho Lottery spend its money?
- Public Schools (K-12)
- Public Buildings
Where does the state of Illinois invest its lottery money?
- Illinois Common School Fund (K-12)
- Multiple Sclerosis Research Fund
- Quality of Life Endowment Fund
- Illinois Veterans Assistance Fund
- Ticket For The Cure Fund
- Capital Projects Fund
- State Police Fund
- Alzheimer’s Awareness
Where does the Indiana Lottery money go?
- Build Indiana Fund
- Police & Firefighters Pension Fund
- Teachers Pension Fund
Iowa Lottery funds go to…
- General Fund
- Veterans Trust Fund
- Public Safety Survivor Benefits Fund
Kansas state distributes its lottery winnings to…
- Transfers back to the State
- General Fund
- Mental Health Programs
- Veterans Programs
What does the state of Kentucky invest its lottery money in?
- General Fund
- Post-Secondary & College Scholarships
- Kentucky Higher Education Assistance Authority
- Literacy Programs & Early Childhood Reading
Louisiana Lottery money distribution
- Transfers to State
- Problem Gambling
Where does Maine Lottery money go?
- General Fund
- Maine Outdoor Heritage Fund
How does the Maryland state distribute its lottery winnings?
- Education Trust Fund – Video Lottery Terminal (VLT) and Table Game Proceeds
- General Fund – Lottery Profit
- Baltimore City Schools – Lottery Profit
- Responsible Gaming – VLT and Table Game Assessments
- Maryland Stadium Authority – Lottery Profit
- Local Impact Grants – VLT Proceeds
- Horse Racing Industry – VLT Proceeds
- Small, Minority, and Women-Owned Businesses – VLT Proceeds
Massachusetts Lottery money goes to…
- General Fund
- Cities and Towns
- Arts Council
- Compulsive Gamblers
How does the state of Michigan spend its lottery money?
- Education (K-12)
- Health and Human Services
- General Fund
Where does Minnesota invest its lottery funds?
- General Fund
- Compulsive Gambling
- Environmental and Natural Resources Trust Fund
- Game & Fish Fund
- Natural Resources Fund
The state of Mississippi invests its lottery winnings in…
- Road and bridge construction
- Education Enhancement Fund
Where does the Missouri Lottery spend its money?
- Public Education
Montana Lottery funds go to…
- General Fund
How the Nebraska state spends its lottery money
- Education Innovation Fund
- Compulsive Gamblers Assistance Fund
- Environmental Trust Fund
- State Fair Support & Improvement Fund
- Nebraska Opportunity Grant Fund
New Hampshire Lottery money goes to…
- Education
Where does the state of New Jersey spend its lottery winnings?
- Education and Institutions
New Mexico Lottery winnings are distributed to…
- New Mexico Legislative Lottery Scholarship Program
- Lottery Tuition Fund
- Public School Capital Outlay
New York lottery money goes to…
- Education
North Carolina distribute its lottery winnings to…
- Education
- Alcohol Law Enforcement
- Problem Gambling
Where does North Dakota Lottery money go?
- General Fund
- Compulsive Gambling Fund
- Drug Task Force
Where does the Ohio Lottery invest its winnings?
- Education
Oklahoma spends lottery money on…
- Education
- Mental Health
What does the Oregon Lottery invest its winnings in?
- Economic Development
- Public Education
- Veteran’s Services
- Parks and Natural Resource Programs
- Gambling Addiction Prevention & Treatment Programs
How the state of Pennsylvania spends its lottery winning
- Programs for older Pennsylvanians
How Rhode Island spends its lottery money
- General Fund
South Carolina Lottery money goes to…
- Education Lottery Fund
Where does South Dakota Lottery winnings go?
- General Fund
- Capital Construction Fund
- Property Tax Reduction Fund
- Grant to Human Services
How the state of Tennessee spends its lottery funds
- Lottery for Education Account
- After School Program
Texas state distribute its lottery winnings to
- Foundation School Fund
- General Revenue Fund
- Multicategorical Teaching Hospital
- Texas Veterans Commission
Vermont Lottery spend its winnings on..
- Education Fund
Where does the Virginia Lottery money go?
- General Fund
- Direct aid to Public Education K-12
Where does the Washington Lottery invest its money?
- General Fund
- Washington Opportunity Pathways Account
- King County Stadium and Exhibition Center (Qwest Field)
- Economic Development Strategic Reserve
- Problem Gambling
- Education Legacy Account
West Virginia Lottery money goes to…
- Education
- Senior Citizens
- Tourism
Where does the Wisconsin Lottery money go?
- Public Benefit – Total Available for Property Tax Relief
How does the Wyoming state spend its lottery money?
- Wyoming cities, towns, and counties
Summing up…
Playing the Lottery is not only a form of entertainment, it’s also a way to contribute to worthy causes in your community. And while each U.S. state has its own way of distributing lottery money, every ticket you play makes a difference. Whether it’s supporting educational programs, improving infrastructure, or preserving natural resources, lottery proceeds play a vital role in shaping the future of your state.
However, it’s important to always play responsibly and within our financial limits. Never spend more than you can afford to lose. See you in the next article, and until then, good luck with your numbers!