Current:Home > InvestHere's where your money goes when you buy a ticket from a state-run lottery -MarketMind
Here's where your money goes when you buy a ticket from a state-run lottery
View
Date:2025-04-26 06:53:35
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! (3)
Related
- 'Most Whopper
- From SZA to the Stone of Scone, the words that help tell the story of 2023 were often mispronounced
- Indonesia ends search for victims of eruption at Mount Marapi volcano that killed 23 climbers
- Halle Berry Reveals She Had “Rocky Start” Working With Angelina Jolie
- Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
- Authorities in Alaska suspend search for boy missing after deadly landslide
- Opening month of mobile sports betting goes smoothly in Maine as bettors wager nearly $40 million
- And you thought you were a fan? Peep this family's Swiftie-themed Christmas decor
- Trump suggestion that Egypt, Jordan absorb Palestinians from Gaza draws rejections, confusion
- It's one of the biggest experiments in fighting global poverty. Now the results are in
Ranking
- Arkansas State Police probe death of woman found after officer
- Democratic support for Biden ticks up on handling of Israel-Hamas war, AP-NORC poll says
- Putin continues his blitz round of Mideast diplomacy by hosting the Iranian president
- Air quality had gotten better in parts of the U.S. — but wildfire smoke is reversing those improvements, researchers say
- 'Most Whopper
- Israel and US at odds over conflicting visions for postwar Gaza
- Turkish President Erdogan visits Greece in an effort to mend strained relations
- Tearful Adele Proves Partner Rich Paul Is Her One and Only
Recommendation
Opinion: Gianni Infantino, FIFA sell souls and 2034 World Cup for Saudi Arabia's billions
Trump tells supporters, ‘Guard the vote.’ Here’s the phrase’s backstory and why it’s raising concern
New director gets final approval to lead Ohio’s revamped education department
Australia pushes against China’s Pacific influence through a security pact with Papua New Guinea
Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
Europe’s talks on world-leading AI rules paused after 22 hours and will start again Friday
Powerful earthquake shakes South Pacific nation of Vanuatu; no tsunami threat
What grade do the Padres get on their Juan Soto trades?