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

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.

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