Lottery winners aren't the only ones who cash in

KTRK logo
Friday, January 15, 2021
Lottery winners aren't the only ones who cash in
EMBED <>More Videos

With all the buzz about the millions of dollars in lottery jackpots, where does all that money go? Here's a breakdown of the disbersments.

When a lucky person holds a winning lottery ticket for a record-breaking jackpot, they're not the only ones who rake in the cash.

While up to 60% of jackpots in the Powerball and Mega Millions games go directly to the winners, retailers get bonuses too.

Stores that sell winning tickets take in about 5% of a jackpot, while 10% usually goes to administrative costs like staff salaries, advertising and ticket printing, according to Sandra Grauschopf, a sweepstakes and contest expert for personal finance website The Balance Everyday.

In Texas, the lottery commission has a breakdown of the percentages of how funds are allotted.

  • 65% - Jackpots
  • 25% - Education
  • 5% - Retailer bonuses
  • 3 % - Administrative
  • 2% - State programs and veterans assistance

The Texas Lottery Commission sent more than $1.6 billion in 2020 to the Foundation School Fund, according to a statement on its website. The fund is the primary source of state funds for Texas school districts. You can see a complete list of the amounts given to all districts in Texas in 2019 here. The amounts do not include revenues generated by school districts.