Lottery Scholarship Funding Dismal Despite Revenue Spike

September 12, 2017 | Posted in Arkansas Lottery | By

Last week the Arkansas Lottery posted its financial report for the month of August.

The Arkansas Lottery took in over $49.3 million in last month — nearly $12.5 million than the month before — but it paid out $8.9 million to scholarships — roughly 18.1% of its gross revenue.

Since 2014, the Arkansas Lottery has spent roughly 18% – 19% of its revenue on scholarships. That’s well below the national average.

There are no two ways about it: The Arkansas Lottery is a failure. It rolled out more gambling more quickly than any lottery we know in order to artificially bolster ticket sales.

It sets aside a smaller percentage of money for education than the average state lottery.

Other state lotteries pay more money to education despite making less money than Arkansas’ lottery.

And rather than reassess its priorities or restructure its budget, the Arkansas Lottery has a habit of trying to use marketing and promotion to gloss over its shortcomings.

Below is a breakdown of lottery figures so far this financial year.

Month Gross Lottery Revenue Paid to Scholarships % Gross Revenue
July $ 36,885,396.81  $ 6,661,762.99 18.1%
August  49,320,459.23 8,912,741.54 18.1%
Total  $ 86,205,856.04  $ 15,574,504.53 18.1%

AR Lottery Begins Fiscal Year on a Low Note

August 9, 2017 | Posted in Arkansas Lottery | By

Today the Arkansas Lottery released its financial reports for the month of July, marking the beginning of Fiscal Year 2018.

According to the reports, the Arkansas Lottery took in nearly $36.9 million, but paid out less than $6.7 million for scholarships–about 18% of its gross revenue for the month.

This is down from July of last year, when the Arkansas Lottery made $38.2 million and paid $8.7 million to scholarships.

You can read the Arkansas Lottery’s July report here.

Arkansas Lottery Spends 19 Cents of Every Dollar on Scholarships in FY 2017

July 10, 2017 | Posted in Arkansas Lottery | By

Today the Arkansas Lottery released its final monthly report for Fiscal Year 2017.

The report shows the Arkansas Lottery made a little over $38.5 million in June; of that money, roughly $6.8 million was spent on college scholarships. Nearly $6.4 million extra in scholarship funding came from the Lottery’s unclaimed prizes account, which is funded with prize money that is not claimed by lottery players.

June marks the end of Fiscal Year 2017 at the Arkansas Lottery. Since July of 2016, the Lottery has made nearly $450 million, but has spent less than $85.3 million on scholarships–roughly 19 cents of every dollar it made.

To put those numbers into perspective, the Louisiana Lottery is required by law to spend at least 35% of its revenue on education. As of March 31, 2017, the Louisiana Lottery had made nearly $342.2 million, and it had set aside more than $120 million for education.

Louisiana’s Lottery often makes less money than Arkansas’, but it pays out more for education, because Louisiana’s state law requires a minimum percentage of the Louisiana Lottery’s revenue to go to education. In Arkansas, however, students get whatever money is leftover after the Lottery has paid its other bills.

Below is a breakdown of the Arkansas Lottery’s figures for Fiscal Year 2017.

Month Gross Lottery Revenue Paid to Scholarships % Gross Revenue
July, 2016 38,237,293.92 8,714,386.39 22.8%
August 35,091,022.09 5,498,714.86 15.7%
September 33,113,391.64 5,773,076.42 17.4%
October 34,061,993.14 5,165,040.54 15.2%
November 37,042,079.72 6,570,979.51 17.7%
December 35,352,159.35 4,596,532.22 13.0%
January, 2017 37,062,291.39 7,947,546.21 21.4%
February 41,176,854.60 6,698,099.62 16.3%
March 43,405,541.56 6,204,704.75 14.3%
April 38,671,617.14 7,845,827.56 20.3%
May 38,185,263.61 7,068,770.18 18.5%
June 38,517,227.85 13,193,652.18 34.3%
Total $449,916,736.01 $85,277,330.44 19.0%

Photo Credit: Mega Millions lottery tickets, by msspider66.