WHERE THE MONEY GOES

A pie chart of where the money goes as described in the body text

Since the Kansas Lottery's start up in November 1987, through June 30, 2013, Lottery ticket sales have produced more than $1.4 billion in revenues transferred to the State of Kansas.

The Lottery's Fiscal Year 2014, which ended June 30, 2014, produced $246.4 million (unaudited) in sales and $74.3 million transferred to the state.

The Kansas Lottery Act requires that a minimum of 45 percent of total sales be paid back to the players through the prize fund. In Fiscal Year 2013 (July 1, 2012 through June 30, 2013), the Kansas Lottery paid out 56.6 percent in prizes. The State Gaming Revenues Fund received 29.5 percent of ticket sales; cost of sales was 3.9 percent (which covers online vendor fees, telecommunications costs and instant ticket printing); 5.8 percent was paid to Lottery retailers for commissions and bonuses; and 4.2 percent covered administrative expenses (salaries, advertising, depreciation, professional services and other administrative expenses.)

How are Kansas Lottery Proceeds Distributed?

The State Gaming Revenues Fund (SGRF) is funded through monthly transfers from the Kansas Lottery. Transfers are then made from the Gaming Fund to funds dedicated to economic development initiatives, prison construction and maintenance projects, local juvenile detention facilities, problem gambling assistance, and the State General Fund.

The first $50 million is divided by a formula which first transfers $80,000 to the Problem Gambling and Addictions Grant Fund. Then 85 percent of the balance is transferred to the Economic Development Initiatives Fund, 10 percent to the Correctional Institutions Building Fund, and 5 percent to the Juvenile Detention Facilities Fund. Any receipts in excess of $50 million must be transferred to the State General Fund.

Gaming Revenues Fund Fiscal Year 2013
Economic Development Initiatives Fund $42,432,000
Juvenile Detention Facilities Fund $2,496,000
Correctional Institutions Building Fund $4,992,000
Problem Gambling Grant Fund $80,000
State General Fund $24,500,000

Kansas Lottery Veterans Benefit Tickets

Legislation passed by the 2003 Legislature authorizes net profits from Veterans Benefit Games to go directly to designated veterans programs.  Every penny of the money is used here in Kansas and goes to provide basic things for our Kansas military veterans.

All net profits received from the sale of Kansas Lottery Veterans Benefit Games are deposited into the state treasury and are then directed to three special funds: 

  • 40 percent for National Guard educational assistance act scholarships
  • 30 percent to the veterans home fee fund to be used for the Kansas veterans homes and the state veterans cemetery system
  • 30 percent to the veterans enhanced service delivery program

Click to learn more about the  Veterans Enhanced Service Delivery Program.
Watch video about the Veterans Enhanced Delivery Program.

Initially, Veterans Benefit Games were sold only from May through November each year.  A change in the legislation authorized the Lottery to sell the games year round, starting in May 2008.  Fiscal Year 2009 was the first year that included year round sales.

How does the Kansas Lottery transfer revenue from Veterans games?

Net profits from the sale of Kansas Lottery Veterans games are transferred to the state treasury once a year on June 15. The transfer is made at the same time as the Lottery makes its monthly transfer to the State Gaming Revenues Fund.  From the state treasury, the Veterans Benefit funds are distributed directly to the designated programs, according to the percentages in the legislation.

How Much Money Has the Lottery Transferred from Veterans Games?

Fiscal Year Transfers
FY 2004 $632,695
FY 2005 $701,164
FY 2006 $717,113
FY 2007 $913,138
FY 2008 $880,163
FY 2009 $1,628,958
FY 2010 $1,030,443
FY 2011 $755,687
FY 2012 $1,352,562
FY 2013 $1,594,127
FY 2014 $1,795,054
Total $12,002,104



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