Where does all that lottery money go?
Wed, 26 Oct 2011 20:08:34 GMT —
Today our Facebook fans wanted to know how lottery proceeds are spent.
According to the Iowa Lottery, scratch tickets, pull tabs and the Lotto have generated 1.3 billion in profits in the 25 year history of lottery gaming.
The majority of the profits have gone into the Iowa Legislature's general spending account.
The lottery has contributed more than one-billion dollars into the general fund, including 55 million last year.
Programs paid for out of the general fund include education, natural resources, health and family services and public safety.
The lottery also contributes 20 million a year to the Vision Iowa program.
Ottumwa TMs Bridge View Center was built using vision Iowa funds.
Two to three million dollars a year has been dedicated to the Iowa Veteran TMs Trust Fund.
Lottery proceeds have been used for a variety of other purposes including establishing gambling treatment and job training programs.
In the Show-me State lottery proceeds have been specifically devoted to education spending since fiscal year 1994.
Prior to that, proceeds went directly into the general fund.
According to the Missouri Lottery, about 26 cents out of every dollar taken in by the lottery goes to Missouri schools.
In fiscal year 2011 that amounted to about 259 million dollars, or about four percent of total the state spends on elementary, secondary and higher education.
So where does the other seventy five cents of every dollar go?
The lottery says roughly 64 cents is return to players in the form of prizes.
About six cents goes to retailers in the form of bonuses and sales incentives
The remaining four percent is used to cover the Lottery's administrative costs.