The Texas Lottery was created in 1991 when Texas voters approved a constitutional amendment authorizing lottery games in the state. The Texas Lottery Commission operates the lottery and distributes proceeds to the state for public education and veterans’ services. According to the Texas Lottery Commission’s website, their mission statement is:
The Texas Lottery’s Mission Statement
“The Texas Lottery Commission exists to serve the people of Texas by generating revenue for public education and state priorities through the responsible management and sale of entertaining lottery products.”
This mission statement emphasizes several key points about the purpose and operations of the Texas Lottery:
Generating Revenue for Public Education and State Priorities
The primary reason for the lottery’s existence is to generate revenue for public education and other state programs and services. When the Texas Lottery was approved by voters, its proceeds were constitutionally mandated to go to the Foundation School Fund which supports public education. In 2009, the Texas Legislature expanded the beneficiaries of lottery proceeds to also include Texas veterans’ services. So generating revenue is central to the lottery’s mission.
Responsible Management and Sale of Lottery Products
While revenue generation is the main objective, the Texas Lottery seeks to achieve this through responsible management and product sales. This suggests a balanced approach of maximizing proceeds while promoting responsible gambling practices. The lottery oversees responsible gambling education initiatives and partners with organizations to promote healthy play.
Entertaining Lottery Products
The mission statement also focuses on providing entertaining lottery products to customers. The lottery offers a variety of scratch tickets and draw games designed to be fun and engaging for players. Popular games include Lotto Texas, Mega Millions, Powerball, Texas Two Step, All or Nothing, Pick 3, Daily 4, Cash Five, Texas Triple Chance, and numerous themed scratch tickets. The lottery aims to create games that attract players while generating significant revenue.
Texas Lottery Revenue and Proceeds
Since starting ticket sales in 1992, the Texas Lottery has generated significant revenue for public education, veterans’ programs, and retailer commissions. Here is a table showing Texas Lottery revenue and proceeds distribution over the past 10 fiscal years:
| Fiscal Year | Total Revenue | Amount to Foundation School Fund | Amount to Texas Veterans Commission | Amount to Retailer Commissions |
|---|---|---|---|---|
| 2022 | $8.46 billion | $2.33 billion | $27.8 million | $524.7 million |
| 2021 | $8.17 billion | $2.18 billion | $27.2 million | $510.7 million |
| 2020 | $6.70 billion | $1.81 billion | $22.5 million | $416.5 million |
| 2019 | $6.20 billion | $1.68 billion | $23.4 million | $372.8 million |
| 2018 | $5.57 billion | $1.44 billion | $17.5 million | $339.7 million |
| 2017 | $5.29 billion | $1.37 billion | $16.4 million | $324.3 million |
| 2016 | $5.05 billion | $1.34 billion | $16.0 million | $313.7 million |
| 2015 | $4.86 billion | $1.29 billion | $15.7 million | $301.8 million |
| 2014 | $4.76 billion | $1.25 billion | $19.0 million | $294.4 million |
| 2013 | $4.52 billion | $1.18 billion | $16.9 million | $281.7 million |
As the table shows, the Texas Lottery has steadily grown its annual revenue over the past decade, with a record $8.46 billion in total revenue in fiscal year 2022. The vast majority of proceeds are transferred to the Foundation School Fund to support Texas public schools. In FY 2022, the lottery provided $2.33 billion to the School Fund, accounting for around 3% of all public education funding in Texas. Smaller portions go to the Texas Veterans Commission and to retailer commissions. Over the lottery’s 30-year history, it has contributed over $33 billion to education funding in the state.
Key Facts about the Texas Lottery
Here are some key facts and figures providing an overview of the Texas Lottery:
Lottery Games Offered
- Lotto Texas – jackpot draw game with twice weekly drawings
- Mega Millions – massive multi-state jackpot draw game
- Powerball – another huge multi-state jackpot game
- Texas Two Step – unique four-number draw game
- All or Nothing – daily draw game to match all or none of 12 numbers
- Pick 3 – daily three-digit number draw game
- Daily 4 – four-digit number draw game with two daily drawings
- Cash Five – five-number draw game with two weekly drawings
- Texas Triple Chance – unique scratch ticket with three chances to win
- Numerous themed scratch ticket games offering top prizes up to $5 million
Texas Lottery Sales
- Over 18,000 Texas Lottery retail locations
- FY 2022 sales of $8.46 billion
- All-time sales over $100 billion since 1992 launch
- Average annual sales over $3.3 billion
- Peak yearly sales of $5.07 billion in 2006
Contributions to Texas Education
- Over $33 billion contributed to Foundation School Fund since 1993
- FY 2022 contributions of $2.33 billion
- Provides around 3% of annual public education funding
- Lottery funds equivalent to cost of educating over 800,000 students per year
Prizes and Winners
- Over $81 billion in total prizes paid since 1992
- FY 2022 prizes of $5.13 billion paid to Texas Lottery players
- Two record Powerball jackpots won by Texas residents – $590.5 million in May 2013 and $1.586 billion in January 2016
- Texas Lotto Texas produced 2 jackpot winners of over $200 million
- Over 5,500 lottery prizes of $1 million or more won by Texans
Texas Lottery Operations
- Headquarters in Austin, 16 regional claim centers, and 5 draw studios
- 648 full-time employees as of October 2022
- Overseen by a five-member, governor-appointed commission
- September 2023 contract extension with lottery operator IGT extended partnership to 2032
The Lottery’s Benefits for Texas Education
While the merits of state-run lotteries can be debated, there is no question the Texas Lottery has made a substantial impact on education funding over the past three decades. Here are some of the key benefits and uses of the billions contributed annually to the Foundation School Fund:
- Helps purchase instructional materials like textbooks
- Provides technology like computers and software to schools
- Funds construction and repairs for school facilities
- Allows hiring of additional teachers to reduce class sizes
- Enables pay raises for teachers and school staff
- Expands programs like full-day pre-K, bilingual education, STEM, and career/technical education
- Helps equalize funding between property-wealthy and property-poor school districts
Without the over $33 billion generated for schools so far, Texas would have faced major education budget cuts or been forced to raise taxes significantly. The Texas Education Agency estimates the lottery has funded the education of over 26 million students since 1997. So while the lottery has provided fun and entertainment for players, it has also delivered vital resources to one of Texas’ most critical needs – educating its future workforce and leaders.
Per Student Lottery Funding
To put the Texas Lottery’s education contributions into perspective, here is a table showing the inflation-adjusted amount of per student funding provided annually over the past decade:
| Fiscal Year | Amount to Foundation School Fund | Number of Students | Per Student Funding |
|---|---|---|---|
| 2022 | $2.33 billion | 5.4 million | $430 |
| 2021 | $2.18 billion | 5.4 million | $403 |
| 2020 | $1.81 billion | 5.5 million | $330 |
| 2019 | $1.68 billion | 5.4 million | $311 |
| 2018 | $1.44 billion | 5.4 million | $267 |
| 2017 | $1.37 billion | 5.3 million | $259 |
| 2016 | $1.34 billion | 5.3 million | $253 |
| 2015 | $1.29 billion | 5.2 million | $248 |
| 2014 | $1.25 billion | 5.1 million | $245 |
| 2013 | $1.18 billion | 5.0 million | $236 |
Inflation adjusted funding per student has risen over the past decade from $236 to $430 annually. These amounts represent a significant contribution, equating to hundreds of dollars per student that can go towards instructional materials, technology, books, supplies, and other essential education expenses.
Responsible Gambling Initiatives
While generating revenue for education is central to its mission, the Texas Lottery also recognizes the importance of responsible gambling practices. The lottery promotes responsible play through various initiatives:
Play Responsibly Messaging
The Texas Lottery website, mobile app, retail locations, and advertising materials prominently feature “Play Responsibly” messages. This encourages players to set a budget, only use discretionary income, have a balanced lifestyle, know the warning signs of problem gambling, and get help if needed.
Problem Gambling Support
The Texas Lottery website has resources to connect players to organizations offering help for problem gambling. This includes links to Gamblers Anonymous meetings and the Texas Gambling Helpline sponsored by the Texas Council on Problem Gambling.
Limiting Access
Sales of lottery tickets are prohibited to minors under 18. Tickets also cannot be purchased with credit cards or other borrowed money. Online lottery play is not allowed.
Advertising Guidelines
The lottery adheres to responsible gambling advertising standards. Ads do not exaggerate chances of winning or suggest playing as a solution to financial problems. Messaging focuses on play for entertainment.
Retailer Training
Retailers receive training on how to identify and respond to concerning play at their locations. Frequent visits and large purchases can trigger interventions like discussing gambling risks.
Through these and other efforts, the Texas Lottery aims to allow responsible adults to enjoy playing lottery games while minimizing potential harms from excessive gambling.
Conclusion
In summary, the Texas Lottery serves its state by generating billions in funding for key public services while providing fun and entertaining games to players. Its mission centers on revenue generation achieved through responsible management practices. By constitution and legislative mandate, the bulk of proceeds benefits Texas education while smaller portions support veterans. Over its 30-year history, the Texas Lottery has contributed over $33 billion to schools which has provided substantial financial assistance. While not without controversies and critics over the years, the Texas Lottery has become a firmly established institution intertwined with the funding structure supporting the state’s schools, students, and teachers.
