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Thursday, April 17, 2025

Where does the money go when you buy a lottery ticket?

 


Where does the money go when you buy a lottery ticket?

Recently, prices went up on the Powerball lottery tickets to $3, and Mega Millions went up to $5 per play and the question I have is simple: where does that money go for each play?  The Lottery Commission's claim it goes to support multiple state programs such as Parks and recreational programs, veterans’ programs, emergency services, and educational programs within each state, but does it really?  So I did a little investigating to find out where the money goes. Here is the list that features each state's breakdown on where the money goes. Interesting results for sure. It doesn’t just go to education, environmental, veterans, parks and recreation, or even emergency services.  

Arizona              

The Arizona Lottery's launch on July 1, 1981, its sales revenue totaling $11 billion, with nearly $3.5 billion of that directed back into state funds and programs. While a majority — and growing — portion of that money has gone into the general fund where the governor and Legislature can spend it as they choose, about $1.8 billion has been returned to Arizona communities through grants and programs that help people who are homeless, victims of domestic abuse and children in the foster care system. The following is a little bit about the breakdown of where the money goes. I’ve fleshed out the Arizona funding sources and listed the other states' programs you can research independently. But remember this: where it says General Fund, that means the money goes to the state Legislature to decide who gets what money and where it is sent.  I have to wonder if it lands in the state representatives pocket or political PAC account for the next general election, because each state has problems with roads, maintenance needed in their parks and recreational locations, their schools aren’t paying the teachers any raises and the veterans are being neglected oh and the emergency services are lacking upgrades equipment or personnel, so where is that money going? I recommend that every citizen who reads this posting put a team together and begin researching where that money goes before it’s too late and your property taxes go up higher than they should go up.

Reference Source: Mega Millions lottery: Where does lottery money go in different states? : NPR

Arizona:

  • Heritage Fund  $6million allocated for various projects Arizona Heritage Alliance Announces $6 Million in Heritage Fund Grants for FY 2024  - Arizona Heritage Alliance
  • Commerce Authority Arizona Competes Fund: An annual state-wide deal closing fund of $25 million. A portion is available to qualified organizations achieving performance measures that stimulate and promote industries that provide stable, high-wage jobs.
  • Mass Transit: Pheonix buses upgrade
  • Healthy Arizona
  • State of Arizona General Fund: The General Fund provides nearly $18 billion. Other funds include $5 billion appropriated by the legislature and $13 billion non-appropriated funds. Non-appropriated funds are funds that agencies may spend without being authorized by the legislature.
  • Court Appointed Special Advocate Fund (Unclaimed prizes): 5-568. Disposition of unclaimed prize money

Unclaimed prize money for the prize on a winning ticket or share shall be retained for the person entitled to the prize for one hundred eighty days after the drawing in which the prize was won in the case of a drawing prize and for one hundred eighty days after the announced end of the game in question in the case of a prize determined in any manner other than by means of a drawing. If a claim is not made for the money within the applicable period, the money shall be transferred in the following amounts:

1. Fifty-five percent of the prize money shall be held in the state lottery prize fund for use as additional prizes in future games, except that if the amount of monies transferred by the commission pursuant to section 5-554, subsection H, paragraph 1 is less than $900,000 each fiscal year, the difference shall be transferred to the internet crimes against children enforcement fund established by section 41-199 and if the amount of monies transferred by the commission pursuant to section 5-554, subsection H, paragraph 2 is less than $100,000 each fiscal year, the difference shall be transferred to the victims' rights enforcement fund established by section 41-1727.

2. Thirty percent shall be transferred quarterly to the court appointed special advocate and vulnerable persons fund established by section 8-524.

3. Fifteen percent shall be transferred monthly to the tribal college dual enrollment program fund established by section 15-244.01. The amount transferred may not exceed $325,000 in any fiscal year.

  • Homeless Shelters
  • Dept of Gaming
  • University Bond Fund: educational institutions find it increasingly difficult to come by public funding, many are looking to the bond market to plug the gap
  • Internet Crimes Against Children Victims: This is part of the Social Services program that gets bonuses to separating children from their natural parents based on anonymous tips of child abuse.
  • Tribal College Dual Enrollment Program: Wonder why the state of Arizona provides funding for tribal college when the Bureau of Indian Affairs in Washington DC pays these college funds?

Arkansas Scholarship Lottery

  • Educational Trust Fund

California Lottery

  • Education

Colorado Lottery

  • Division of Parks and Wildlife
  • Conservation Trust Fund
  • Great Outdoors Colorado Trust Fund
  • School Fund

Connecticut Lottery

  • General Fund (to benefit education, roads, health and hospitals, public safety, etc.) In otherwords, it goes to the legislature to decide who gets what pot of money. Remember Connecticut has been bankrupt for years, so whose pocket is the money going into?

Delaware Lottery

  • General Fund
  • Health & Social Services-Problem Gambler Programs

DC Lottery

  • General Fund

Florida Lottery

  • Education Enhancement Trust Fund

Georgia Lottery

  • Lottery for Education Account

Idaho Lottery

  • Public Schools (K-12)
  • Public Buildings

Illinois Lottery

  • Illinois Common School Fund (K-12)
  • Illinois Veterans Assistance Fund
  • Ticket For The Cure Fund
  • Quality of Life Endowment Fund
  • Multiple Sclerosis Research Fund
  • Special Olympics Fund

Indiana Lottery

  • Build Indiana Fund
  • Teachers Pension Fund
  • Police & Firefighters Pension Fund

Iowa Lottery

  • General Fund
  • Veterans Trust Fund

Kansas Lottery

  • Transfers to the State

Kentucky Lottery

  • Post-Secondary & College Scholarships
  • Literacy Programs & Early Childhood Reading

Louisiana Lottery

  • Transfers to State
  • Problem Gambling

Maine Lottery

  • General Fund
  • Maine Outdoor Heritage Fund

Maryland Lottery

  • Maryland General Fund - Lottery Profit
  • Baltimore City Schools - Lottery Profit
  • Maryland Stadium Authority - Lottery Profit
  • Education Trust Fund - VLT and Table Game Proceeds
  • Local Impact Grants - VLT Proceeds
  • Horse Racing Industry - VLT Proceeds
  • Small, Minority, and Women-Owned Businesses - VLT Proceeds
  • Responsible Gaming - VLT and Table Game Assessments

Massachusetts Lottery

  • Cities and Towns
  • Arts Council
  • General Fund
  • Compulsive Gamblers

Michigan Lottery

  • Education (K-12)
  • Health and Human Services
  • General Fund

Minnesota Lottery

  • General Fund
  • Environmental and Natural Resources Trust Fund
  • Game & Fish Fund
  • Natural Resources Fund
  • Compulsive Gambling

Missouri Lottery

  • Public Education in Missouri

Montana

  • State of Montana General Fund

Nebraska

  • Compulsive Gamblers Assistance Fund
  • Education Innovation Fund
  • Environmental Trust Fund
  • State Fair Support & Improvement Fund
  • Nebraska Opportunity Grant Fund

New Hampshire

  • Education

New Jersey

  • Education and Institutions

New Mexico

  • Lottery Tuition Fund

New York

  • Education

North Carolina

  • Education
  • Alcohol Law Enforcement
  • NC Problem Gambling

North Dakota

  • Compulsive Gambling Fund
  • State General Fund
  • Drug Task Force

Ohio

  • Education

Oklahoma

  • Education
  • Mental Health

Oregon

  • Economic Development
  • Public Education
  • Parks and Natural Resource Programs
  • Gambling Addiction Prevention & Treatment Programs

Rhode Island

  • General Fund

South Carolina

  • Education Lottery Fund

South Dakota

  • General Fund
  • Capital Construction Fund
  • Grant to Human Services

Tennessee

  • Lottery for Education Account
  • After School Program

Texas

  • Foundation School Fund
  • Multicategorical Teaching Hospital
  • Texas Veterans Commission (Veterans Assistance Fund)

Vermont

  • Education Fund

Virginia

  • Direct aid to Public Education K-12

Washington

  • Washington Opportunity Pathways Account
  • King County Stadium and Exhibition Center (Qwest Field)
  • Economic Devel. Strategic Reserve
  • Problem Gambling
  • General Fund

West Virginia

  • Education
  • Senior Citizens
  • Tourism
  • Other

Wisconsin

  • Public Benefit - Total Available for Property Tax Relief

Wyoming

  • Wyoming Cities, Town, and Counties

 

While some states actually use the excess lottery funds for educational, park and recreation, veterans or first responder initiatives, most state lottery funds aren’t so clear. So where does that money go when you buy a lottery ticket? Inquiring minds want to know.

Elizabeth Kilbride is a Writer and Editor with forty years of experience in writing with 12 of those years in the online content sphere. Author of 5 books and a Graduate with an Associate of Arts from Phoenix University in Business Management, then a degree. Mass Communication and Cyber Analysis from Ashford University, then on to Walden University for her master’s in criminology with emphasis on Cybercrime and Identity Theft and is currently studying for her Ph.D. degree in Criminology. Her work portfolio includes coverage of politics, current affairs, elections, history, and true crime. Elizabeth is also a gourmet cook, life coach, and avid artist in her spare time, proficient in watercolor, acrylic, oil, pen and ink, Gouche, and pastels. As a political operative having worked on over 300 campaigns during her career, Elizabeth has turned many life events into books and movie scripts while using history to weave interesting storylines. She also runs 7 blogs that range from art to life coaching, to food, to writing, Gardening, and opinion or history pieces each week. 

 

 

 

 

 


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