Current:Home > ContactHere's where your money goes when you buy a ticket from a state-run lottery -Pinnacle Profit Strategies
Here's where your money goes when you buy a ticket from a state-run lottery
NovaQuant Quantitative Think Tank Center View
Date:2025-04-09 07:42:48
After several weeks of no winners, the Mega Millions jackpot has increased to an estimated $1.35 billion — the second-largest jackpot in the game's history, according to Mega Millions officials.
But it's not just you who could benefit from buying a ticket. Lotteries also benefit some states.
Though specific systems differ between each state, each of the 45 states (along with the District of Columbia, Puerto Rico and the U.S. Virgin Islands) that offer lotteries donates a certain percentage of the revenue generated from ticket sales to specific state causes.
(Five states — Alabama, Utah, Alaska, Hawaii and Nevada — don't sell lottery tickets.)
Research shows that approximately 60% of the revenue from state lotteries goes directly to winners, as the states keep the remaining cash after paying out the prize money and paying certain costs such as advertisements.
For larger lotteries, like Mega Millions or Powerball, half of the ticket revenue goes toward the lottery's prize pool. The remaining half goes toward costs including lottery administration and retailer commissions, in addition to other beneficiaries, a Mega Millions spokesperson told ABC News.
Here's a breakdown of each U.S. state lottery and the beneficiaries each one supports, according to the North American Association of State and Provincial Lotteries:
Arizona
- Heritage Fund
- Commerce Authority Arizona Competes Fund
- Mass Transit
- Healthy Arizona
- State of Arizona General Fund
- Court Appointed Special Advocate Fund (Unclaimed prizes)
- Homeless Shelters
- Department of Gaming
- University Bond Fund
- Internet Crimes Against Children Victims
- Tribal College Dual Enrollment Program
Arkansas
- Educational Trust Fund
California
- Education
Colorado
- Division of Parks and Wildlife
- Conservation Trust Fund
- Great Outdoors Colorado Trust Fund
- School Fund
Connecticut
- General Fund (which, as with other states, benefits the state's education, roads, health and hospitals and public safety)
Delaware
- General Fund
- Health & Social Services-Problem Gambler Programs
District of Columbia
- General Fund
Florida
- Education Enhancement Trust Fund
Georgia
- Lottery for Education Account
Idaho
- Public Schools (K-12)
- Public Buildings
Illinois
- 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
- Build Indiana Fund
- Teachers Pension Fund
- Police & Firefighters Pension Fund
Iowa
- General Fund
- Veterans Trust Fund
Kansas
- Transfers back to the State
Kentucky
- Post-Secondary & College Scholarships
- Literacy Programs & Early Childhood Reading
Louisiana
- Transfers to State
- Problem Gambling
Maine
- General Fund
- Maine Outdoor Heritage Fund
Maryland
- Maryland General Fund - Lottery Profit
- Baltimore City Schools - Lottery Profit
- Maryland Stadium Authority - Lottery Profit
- Education Trust Fund - Video Lottery Terminal (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
- Cities and Towns
- Arts Council
- General Fund
- Compulsive Gamblers
Michigan
- Education (K-12)
- Health and Human Services
- General Fund
Minnesota
- General Fund
- Environmental and Natural Resources Trust Fund
- Game & Fish Fund
- Natural Resources Fund
- Compulsive Gambling
Mississippi
- State Highway Fund
- Education Enhancement Fund
Missouri
- 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
Pennsylvania
- Programs for older Pennsylvanians
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 Development Strategic Reserve
- Problem Gambling
- General Fund
West Virginia
- Education
- Senior Citizens
- Tourism
Wisconsin
- Public Benefit - Total Available for Property Tax Relief
Wyoming
- Wyoming cities, towns, and counties
veryGood! (7)
Related
- Rams vs. 49ers highlights: LA wins rainy defensive struggle in key divisional game
- Elon Musk takes the witness stand to defend his Tesla buyout tweets
- Kim Kardashian Reacts to Pregnant Kourtney Kardashian and Travis Barker’s Baby News
- As Biden Eyes a Conservation Plan, Activists Fear Low-Income Communities and People of Color Could Be Left Out
- Nevada attorney general revives 2020 fake electors case
- Q&A: A Republican Congressman Hopes to Spread a New GOP Engagement on Climate from Washington, D.C. to Glasgow
- Lisa Marie Presley’s Twins Finley and Harper Lockwood Look So Grown Up in Graduation Photo
- The Trump Organization has been ordered to pay $1.61 million for tax fraud
- Biden administration makes final diplomatic push for stability across a turbulent Mideast
- Inside Clean Energy: At a Critical Moment, the Coronavirus Threatens to Bring Offshore Wind to a Halt
Ranking
- Meta releases AI model to enhance Metaverse experience
- Watch the Moment Pregnant Kourtney Kardashian and Travis Barker Revealed They're Expecting
- At buzzy health care business conference, investors fear the bubble will burst
- The South’s Communication Infrastructure Can’t Withstand Climate Change
- The company planning a successor to Concorde makes its first supersonic test
- Untangling Exactly What Happened to Pregnant Olympian Tori Bowie
- How Capturing Floodwaters Can Reduce Flooding and Combat Drought
- Over 100 Nations at COP26 Pledge to Cut Global Methane Emissions by 30 Percent in Less Than a Decade
Recommendation
Civic engagement nonprofits say democracy needs support in between big elections. Do funders agree?
Aviation leaders call for more funds for the FAA after this week's system failure
Q&A: A Republican Congressman Hopes to Spread a New GOP Engagement on Climate from Washington, D.C. to Glasgow
Warming Trends: Stories of a Warming Sea, Spotless Dragonflies and Bad News for Shark Week
Skins Game to make return to Thanksgiving week with a modern look
Cuomo’s New Climate Change Plan is Ambitious but Short on Money
See the Royal Family at King Charles III's Trooping the Colour Celebration
Al Pacino and More Famous Men Who Had Children Later in Life