Category: Arkansas Lottery

State Lottery Still Paying Pennies on the Dollar to Scholarships: Financial Reports

Financial reports show that the Arkansas Lottery still is allocating a paltry amount for college scholarships.

Since the state’s new fiscal year started last July, only 15 – 16 cents out of every dollar the Arkansas Lottery made actually went to scholarships. However, nearly 69% of the Lottery’s revenue has gone to prizes for lottery players.

For perspective, the typical state lottery budgets approximately 25% – 30% of its revenue for education and about 60% for prizes.

The Arkansas Lottery could pay millions of dollars more to scholarships every year if it simply would reduce its prize budget and raise its scholarship budget. Unfortunately, the Lottery has shown little interest in doing that.

Below is a breakdown of lottery revenue, scholarships, and prizes for Fiscal Year 2022.

Scholarship Spending

Month	Gross Lottery Revenue	Paid to Scholarships	% Gross Revenue
July	$47,591,757.56	$8,338,564.13	17.5%
August	50,243,929.03	6,786,603.75	13.5%
Total	$97,835,686.59	$15,125,167.88	15.5%

Prize Spending

Month	Gross Lottery Revenue	Total Prizes	% Going to Prizes
July	$47,591,757.56	$33,228,956.66	69.8%
August	50,243,929.03	33,998,197.59	67.7%
Total	$97,835,686.59	$67,227,154.25	68.7%

Photo Credit: Powerball and Mega Millions Lottery Billboard in Missouri by Tony Webster, on Flickr.

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Lottery Spends Almost 70% of Revenue on Prizes in Fiscal Year 2021

In June the Arkansas Lottery wrapped up Fiscal Year 2021.

Reports released Monday indicate that, all told, nearly 70% of the Arkansas Lottery’s revenue went to prizes for lottery players in the past fiscal year. Seventeen percent went to college scholarships.

For perspective, the typical state lottery budgets approximately 25% – 30% of its revenue for education and about 60% for prizes.

The Arkansas Lottery grossed nearly $632.6 million in fiscal year 2021. Of that money, $106.6 million went to scholarships. $440.1 million went to prizes.

The Arkansas Lottery managed to allocate more than $100 million for scholarships for the first time in its 12 year history. However, it was only able to do that by tapping into more than $8 million in unclaimed prize money.

The Arkansas Lottery could pay millions of dollars more to scholarships every year if it simply would reduce its prize budget and raise its scholarship budget. Unfortunately, the Lottery has shown little interest in doing that.

Below is a breakdown of lottery revenue, scholarships, and prizes for Fiscal Year 2021 (July 1, 2020 – June 30, 2021).

Scholarship Spending

Month	Gross Lottery Revenue	Paid to Scholarships	% Gross Revenue
July, 2020	$49,780,369.99	$8,592,573.93	17.3%
August	49,672,105.04	7,862,917.44	15.8%
September	47,501,224.72	7,691,576.99	16.2%
October	42,615,839.96	8,447,337.00	19.8%
November	43,115,514.84	8,207,598.88	19.0%
December	50,329,644.30	5,970,922.53	11.9%
January, 2021	62,994,737.27	10,913,192.32	17.3%
February	42,099,444.22	5,592,370.95	13.3%
March	67,975,057.80	8,341,917.38	12.3%
April	65,520,420.72	12,299,938.64	18.8%
May	57,605,418.67	7,588,364.37	13.2%
June	53,370,041.16	15,100,729.47	28.3%
Total	$632,579,818.69	$106,609,439.90	16.9%

Prize Spending

Month	Gross Lottery Revenue	Total Prizes	% Going to Prizes
July, 2020	49,780,369.99	35,641,717.48	71.6%
August	49,672,105.04	35,023,856.83	70.5%
September	47,501,224.72	33,422,556.14	70.4%
October	42,615,839.96	29,995,072.50	70.4%
November	43,115,514.84	30,548,473.72	70.9%
December	50,329,644.30	33,661,170.75	66.9%
January, 2021	62,994,737.27	41,745,065.17	66.3%
February	42,099,444.22	27,955,512.19	66.4%
March	67,975,057.80	47,945,090.78	70.5%
April	65,520,420.72	46,040,694.02	70.3%
May	57,605,418.67	40,336,944.48	70.0%
June	53,370,041.16	37,830,320.48	70.9%
Total	632,579,818.69	440,146,474.54	69.6%

Photo Credit: Powerball and Mega Millions Lottery Billboard in Missouri by Tony Webster, on Flickr.

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Arkansas Lottery Gives Scholarships Pennies on the Dollar: May Report

Last week the Arkansas Lottery released its financial report for the month of May.

The report indicates the Arkansas Lottery grossed more than $57.6 million last month, but paid less than $7.6 million to college scholarships — about 13 cents out of every dollar the Arkansas Lottery made. The Lottery budgeted 61.6% of its revenue for prizes.

So far this fiscal year most of the Arkansas Lottery’s revenue — 68% — has gone to prizes. Only 15.8% has gone to college scholarships.

Below is a breakdown of Lottery revenue and scholarship funding so far this fiscal year.

Scholarship Spending

Month	Gross Lottery Revenue	Paid to Scholarships	% Gross Revenue
July	$49,780,369.99	$8,592,573.93	17.3%
August	49,672,105.04	7,862,917.44	15.8%
September	47,501,224.72	7,691,576.99	16.2%
October	42,615,839.96	8,447,337.00	19.8%
November	43,115,514.84	8,207,598.88	19.0%
December	50,329,644.30	5,970,922.53	11.9%
January, 2021	62,994,737.27	10,913,192.32	17.3%
February	42,099,444.22	5,592,370.95	13.3%
March	67,975,057.80	8,341,917.38	12.3%
April	65,520,420.72	12,299,938.64	18.8%
May	57,605,418.67	7,588,364.37	13.2%
Total	$579,209,777.53	$91,508,710.43	15.8%

Prize Spending

Month	Gross Lottery Revenue	Total Prizes	% Going to Prizes
July	$49,780,369.99	$35,641,717.48	71.6%
August	49,672,105.04	35,023,856.83	70.5%
September	47,501,224.72	33,422,556.14	70.4%
October	42,615,839.96	29,995,072.50	70.4%
November	43,115,514.84	30,548,473.72	70.9%
December	50,329,644.30	33,661,170.75	66.9%
January, 2021	62,994,737.27	41,745,065.17	66.3%
February	42,099,444.22	27,955,512.19	66.4%
March	67,975,057.80	47,945,090.78	70.5%
April	67,975,057.80	46,942,442.72	69.1%
May	65,520,420.72	40,336,944.48	61.6%
Total	$589,579,416.66	$403,217,902.76	68.4%

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