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Here's where your money goes when you buy a ticket from a state-run lottery

caption: A Mega Millions customer purchases her tickets for the estimated jackpot of $1.1 Billion at the Fuel On Convenience Store in Pittsburgh, Monday, Jan. 9, 2023. Twenty-four consecutive drawings later with no grand prize winner named, the Mega Millions jackpot is now over $1 billion, making it one of the largest jackpots in lottery history. The next drawing is Friday.
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A Mega Millions customer purchases her tickets for the estimated jackpot of $1.1 Billion at the Fuel On Convenience Store in Pittsburgh, Monday, Jan. 9, 2023. Twenty-four consecutive drawings later with no grand prize winner named, the Mega Millions jackpot is now over $1 billion, making it one of the largest jackpots in lottery history. The next drawing is Friday.
AP

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.

While the odds could still be in your favor to win, players are no doubt mapping out what they would do if they were to win the jackpot.

But while lottery winnings are often spent on fancy vacations, cars and paying off debts, the payoff also benefits the states in some ways, as well.

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

[Copyright 2023 NPR]

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