AUSTIN (KXAN) — It’s been more than 30 years since the Texas Lottery began operations, and billions have been raised courtesy ticket revenue. But where, exactly, does all of that money go?
Originally, lottery proceeds were granted to the Texas General Revenue Fund and helped benefit a host of state programs, according to a 2022 annual report from the Texas Lottery Commission. In 1997, the Texas Lottery shifted its focus to the Foundation School Fund, which allocates money to aid public education across the state.
The lottery has since provided more than $33.9 billion to the fund, as of fiscal year 2022-23.
Then in 2009, the Texas Legislature passed a directive for the Texas Lottery to roll out a scratch ticket game in benefit of the Texas Veterans Commission Fund for Veterans’ Assistance, per the Texas Lottery Commission.
“The FVA makes grants available to eligible charitable organizations, local government agencies and veterans service organizations that provide direct services to Texas veterans and their families,” the Texas Lottery Commission’s report read.
Since then, more than $250 million has been directed to veterans’ programs.
Using FY23 figures, the Texas Lottery Commission broke down where the money goes from “an average dollar spent on lottery games”:
- 66.9% for prizes paid
- 24.5% for the Foundation School Fund
- 5.3% for retailer compensation
- 3% for the lottery’s administration
- 0.3% for the Texas Veterans Commission Fund for Veterans’ Assistance, other state programs (this funding amount includes money from unclaimed prizes)
In total, more than $39 billion has benefitted state programming since the creation of the Texas Lottery, per the commission.