When you buy a Texas lottery ticket, where does the money go? Here’s what it pays for
The Powerball jackpot is now up to $1.55 billion and it’s been just a few days since a lottery player took home a $360 million winning Mega Millions ticket in San Angelo, Texas. We’re still waiting on a Powerball winner, but the Texas Lottery provides billions in funding for public education and veterans’ services.
Here’s where revenues from the Texas Lottery go.
The lottery has generated more than $37 billion in revenue for education, veterans’ services and other state programs since 1992, according to the Texas Lottery Commission. Almost a quarter of the money, or $1.97 billion, in fiscal year 2022 went to education.
Here’s how the percentages broke down:
67.5% — prizes paid
23.8% — Texas education (Foundation School Fund)
5.3% — retailer compensation
3.1% — lottery administration
0.3% — Fund for Veterans’ Assistance and other state programs
In fiscal year 2023, the lottery generated nearly $2.2 billion for public education and veterans services — a record.
“The record revenue transfer to the state confirms the Texas Lottery’s unwavering commitment to its mission and pivotal role of supporting its beneficiaries,” Gary Grief, executive director of the Texas Lottery, said in a news release.
That $2.2 billion is a fraction of public education spending in Texas where K-12 schools spend $74.3 billion annually, according to statistics from Education Data Initiative.
The Texas Lottery started in 1992.
Revenue initially was allocated to the General Revenue Fund to benefit all state programs, according to the Texas Lottery Commission.
Since 1997, the lottery has provided $31.8 billion to the Foundation School Fund to support public education.
Legislation passed in 2009 directed the Texas Lottery to add the first scratch ticket game to benefit the Texas Veterans Commission Fund for Veterans’ Assistance. Since then, it’s generated $221 million for veterans’ services.
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