Where The Money Goes
The New York Lottery generates billions of dollars every year through sales, with a wide range of draw games and scratch-offs to play in the Empire State.
The money taken in by the NY Lottery is used in several ways. A big portion goes towards paying out prizes, as there needs to be big jackpots on offer and lots of other ways to win in order to keep players interested and maintain a high turnover.
There are also costs involved in operating the lottery, while retail commissions are given to the 15,000 sales agents who sell tickets. However, the main purpose of the lottery is to raise money for education in the state, and all the organization’s profit goes towards benefiting schools. Here is an approximate breakdown of where the money goes:
| Area of Spending | Percentage of Revenue |
|---|---|
| Prizes | 48.0% |
| Aid to Education | 34.1% |
| Retailer Commission | 13.7% |
| Operating Costs | 4.2% |
Aid to Education
According to the New York Constitution, every dollar of lottery revenue must be used to support education in the state. Since 1967, the NY Lottery has earned more than $80 billion to support schools.
The amount given to each school district depends on a couple of factors, taking into account its size and income level. Larger, lower-income school districts, for example, receive a proportionally higher share.
The formula used to distribute these funds is set by the State Education Department, and is the same for Lottery Aid as any other State Aid.
Some counties have received more than $1 billion in funding over time. Suffolk, for example, has taken in more than $5 billion since 1977, while more than $3 billion has gone to Nassau.
The money helps children and young people throughout the entire K-12 school system, from prekindergarten through to grade 12.