Tag: Arkansas Lottery

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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State Lottery Still Overspending on Prizes, Undercutting Scholarships

The Arkansas Lottery recently released its financial report for the month of April.

The report shows the Arkansas Lottery took in more than $65.5 million last month. However, less than $12.3 million went to scholarships — about 19 cents out of every dollar the Arkansas Lottery made.

The report also shows the Arkansas Lottery spent nearly $47 million on prizes for lottery players. That’s approximately 71.6% of the lottery’s revenue.

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

Recently, S.B. 649 by Sen. Charles Beckham (R – McNeil) and Rep. Richard Womack (R – Arkadelphia) would have required the Arkansas Lottery to increase the percentage of its revenue budgeted for scholarships to 25% over the next six years. 

This would have brought the Arkansas Lottery up to the standards of the typical state-run lottery — and it most likely would have provided millions of additional dollars in scholarship funding.

However, the legislation failed to pass, and the Arkansas Lottery is still operating irresponsibly.

Click here to see the Arkansas Lottery’s April financial reports.

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