The United States lotteries gave back over $30 billion to special interest groups in fiscal year 2023.
This data is according to the North American Association of State and Provincial Lotteries.
Each state takes a percentage of sales from its respective lottery games and gives it to these groups. That includes states with online lotteries, as well.
Education is the primary beneficiary of the funding, but some states also use it to aid veterans, senior citizens, and more.
New York leads US in lottery funding
Over the last fiscal year, US lotteries contributed more than $30.38 billion to beneficiary groups.
Of the 45 states, as well as Washington D.C., a total of 12 had over $1 billion in contributions for the year.
Here’s a look at the top 10 contributing states in FY23 and where their funding went:
| State | Contribution | Where money went |
|---|---|---|
| 1. New York | $3.69 billion | Education support |
| 2. Florida | $2.45 billion | Education support |
| 3. California | $2.27 billion | Education support |
| 4. Texas | $2.16 billion | Education support Veterans funds General funds |
| 5. Georgia | $1.52 billion | Education support |
| 6. Maryland | $1.50 billion | Education support Veterans funds Stadium funds General funds |
| 7. Ohio | $1.47 billion | Education support |
| 8. Michigan | $1.28 billion | Education support |
| 9. Massachusetts | $1.19 billion | Distributed to 351 cities and towns for them to use at their discretion |
| 10. New Jersey | $1.17 billion | Public employee pension funds |
Courier services, iLottery impacting contributions
Of the top 10 states, just two offer multiple iLottery options – Michigan and Georgia. However, both Pennsylvania and North Carolina had over $1 billion in contributions and they both have legal online lottery in their states.
It should be noted that New York and Maryland do offer online subscription services for select lottery draw games, too.
Of the states that don’t have an online lottery legalized, five do have courier services available.
New York, Texas, Ohio, Massachusetts, and New Jersey each allow for third-party online sales through services like Jackpocket, Jackpot.com, or Lotto.com.
We’ve also seen TheLotter.com emerge as an incoming courier brand in the US. It is planning on launching in states like New Jersey and Texas in the near future.
More than $400 billion in education funding from US lotteries
Since the dawn of state-run lotteries in 1964, over $614 billion has been raised for programs and services.
Education has been the primary beneficiary of these funds. Here’s a breakdown of where the money has gone:
- Education: $404.8 billion
- General Funds: $73 billion
- Local Governments: $39.7 billion
- Senior Citizen Programs: $36.4 billion
- Economic Development/Tourism: $18.6 billion
- Environment: $9.1 billion
- Property Tax Relief: $7.7 billion
- Veterans/Other Special Causes: $402 million
- All other funds: $24.5 billion
All other funds include pension funds, institutions, buildings and stadiums, public safety, public works, as well as health and social services.
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