Distribution of Funds
Since the Kansas Lottery's start-up in November 1987, through June 30, 2009, Lottery ticket sales have produced $1,121,022,843 in revenues transferred to the State of Kansas. The Lottery's Fiscal Year 2009, which ended June 30, 2009, produced $230.5 million in sales and $68.2 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 2009 (July 1, 2008 through June 30, 2009), the Kansas Lottery paid out 56 percent in prizes. The State Gaming Revenues Fund received 29 percent of ticket sales; cost of sales was 4 percent (which covers online vendor fees, telecommunications costs and instant ticket printing); 6 percent was paid to Lottery retailers for commissions and bonuses; and 5 percent covered administrative expenses (salaries, advertising, depreciation, professional services and other administrative expenses.) 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.
Of the first $50 million, $80,000 is transferred to the Problem Gambling and Addictions Grant Fund. Of the remaining $49.92 million, 85 percent of the remainder 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.
All net profits from Kansas Lottery Veterans Benefit scratch tickets are dedicated to veterans' and military programs. In fiscal year 2009, the Lottery transferred $1,628,958 to benefit veterans' programs and National Guard scholarships.
Gaming Revenues Fund – Fiscal Year 2009
| 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 | $15,621,042 |
Read more about this topic: Kansas Lottery
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—George Bernard Shaw (1856–1950)