The State of Texas saw a flood of tax revenue pour into Austin from the state lottery. Figures released this week show the state lottery took in $8.39 billion in fiscal year 2024. It was the lottery’s second-best year in history.
As a result of the activity from Texas lottery sales in FY 2024, which concluded at the end of September, a little more than $2 billion will be used to pay for public education and veterans’ services.
By law, $1.98 billion of tax revenue from the banner year was earmarked for the Foundation School Fund, which helps support public schools, scholarships, busing, vouchers, and other educational efforts.
A total of $26.8 million was sent to the Fund for Veterans’ Assistance.
Earlier this year, Governor Greg Abbott announced the issuance of 181 grants worth nearly $9 million for Texas residents via that program that helps former members of the U.S. military and state law enforcement officials.
Lifetime, the Texas State Lottery has now earned $33.7 billion for public education and $248 million for the state’s veterans.
Low administration costs means highest possible revenue
Texas is one of the most efficient lottery programs in the United States.
According to Texas Lottery, only 3.32% of sales were spent on administration of the program. That figure is below the national average.
“This prudent budgeting ensures that the highest possible revenue is directed towards its critical mission of supporting public education and veterans’ services across Texas,” the Texas Lottery Commission said in a statement.
“The Texas Lottery continues to demonstrate its commitment to supporting the State of Texas,” Texas Lottery Commission chairman Robert G. Rivera said.
“The hard work and dedication of agency staff and vendor partners signifies tangible appreciation for the Foundation School Fund and the Fund for Veterans’ Assistance.
“Looking ahead, the Texas Lottery is committed to building on this year’s progress and further enhancing support
for our state.”
Lottery sales up 25% in five years
Since 2020, the state has experienced a sharp increase in lottery sales, both in-person and online. Growth has spiked 25.2%, or nearly $1.7 billion, over the past five years.
The successful 2024 FY is impressive considering the state had fewer jackpots totaling $1 billion or more during the period.
Instead of singular spikes based on the size of the potential payoff, the state saw steady activity across the 12-month period. FY 2024 was the second-best year for scratch-off ticket as well as draw game sales in the Lone Star State.
“The 2024 fiscal year was a standout year for the Texas Lottery, once again showcasing its ability to develop
exciting new games that captivate and engage lottery players,” said Texas Lottery executive director Ryan Mindell.
One of the newest innovations is lottery courier sales services, which are becoming more prominent in Texas.