Where Lottery Funds Go
Profits and Prizes
Prizes Paid
Expenses
Who Decides Types
Who Decides Specifics
Economic Development Loan Info
What do Oregon's public schools, businesses, workforce, state parks and salmon all have in common? They all receive Lottery profits to help them prepare for the future!
Prior to the current biennium (2001-03), all Lottery profits went to helping fund Oregon's K-12 schools, and to strengthening Oregon's economy. Constitutional amendments approved by Oregon voters in 1984 and 1995 earmarked Lottery profits for economic development and public education. In November 1998, 65% of Oregon voters approved another Constitutional amendment that added parks and salmon restoration to that list of allowable uses of Lottery proceeds.
Since the Lottery began in 1985, over $2.6 billion in Lottery profits has gone to public education and economic development programs throughout Oregon. During that same time, players have won over $6 billion in prizes, and over $1 billion has been paid to Oregon businesses for services and supplies needed to operate the Lottery.
The Oregon Constitution and legislative statutes govern how and where Oregon Lottery dollars are distributed, and defines what types of programs can receive Lottery funds. It also requires that the Lottery be funded entirely by its sales; no tax dollars or other public funds are used to operate the Oregon Lottery.
The Oregon Constitution now channels Lottery profits to economic development, public education, state parks, and salmon restoration. It also requires that at least 84% of the Lottery's total annual sales be returned to the public in the form of prizes to players and profits to help fund programs benefitting the public good. In the last fiscal year, the Oregon Lottery returned 95% of sales to the public in the form of prizes ($918.3 million) and profits ($288.2 million).
In the 2001-2003 biennium, the Legislature allocated Lottery dollars in the following manner:
EDUCATION (63%)State School Fund - $288 million |
ECONOMIC DEVELOPMENT (21%)Economic Development Department - $96.4 million |
PARKS & NATURAL RESOURCES (15%)Parks and Salmon Restoration Projects - $99 million |
PROBLEM GAMBLING TREATMENT FUND (1%)Gambling Addiction Treatment Services - $7.1 million |
State law requires that at least 50% of the Lottery's total annual sales be returned to the public in the form of prizes. In FY 01, the Lottery paid over 64% of its game sales from Megabucks, Scratch-its, Powerball, Keno, Breakopens and Sports Action as prizes. The prize pay-out percentage for every dollar played in Video Lottery was 94%.
Fiscal Year 2001 - Prizes Paid by Game
|
2001 Prizes By Game |
||||
|---|---|---|---|---|
|
Game |
Prizes Paid |
Game |
Prizes Paid |
|
|
Scratch-its |
$85.7 million |
Breakopens |
$2.8 million |
|
|
Megabucks |
$23.6 million |
Powerball |
$19.1 million |
|
|
Keno |
$70.4 million |
Pick4 |
$1.4 million |
|
|
Sports Action |
$6.4 million |
Video Lottery |
$712.0 million |
|
State law limits Lottery operating expenses to no more than 16% of its total annual sales. In the last fiscal year, the Lottery used only 5% of its total sales for operating expenses, and turned over the balance as additional profits for education and economic development programs.
Oregon Lottery operating expenses fall into three basic categories:
-
Retailer Sales Commissions - $175.7 million (FY 01)
-
Game Vendor Expenses - $21.7 million (FY 01)
-
Lottery Administration - $53.7 million (FY 01)
(facilities, computers, vehicles, staff, advertising, supplies, etc.)
The voters of Oregon decide the general types of programs that can receive Lottery dollars. In 1984, the pressing neWho Decides What Types Of Programs Can Receive Lottery Dollars? dedicated Lottery profits to economic development and job creation programs. Ten years later, Oregon's robust economy had become a national leader, but finding adequate funding for public education was the new challenge. In 1995, voters passed a constitutional amendment - by a nine-to-one margin - that added financing of public education to the allowable uses of Lottery proceeds. In 1998, voters approved a constitutional amendment that dedicates 15% of Lottery proceeds to parks and salmon restoration projects.
That's the job of our state legislators, who meet every two years to decide which programs and projects will receive Lottery funds. Certain programs receive dedicated funding. For example, the Education Endowment Fund, which voters created in 1995, automatically gets 15% of all Lottery profits. Parks and salmon restoration projects also automatically receive 15% of all Lottery profits. Lottery-backed bonds for schools, transportation, state parks and clean water projects must be paid before any other allocations are made. Sports Action game earnings go directly to intercollegiate athletics and scholarships, and 2.5% of Video Lottery net receipts go back to the county of origin for local economic development projects. But the majority of Lottery funds are there for your elected officials to distribute based on where the need is greatest for economic development, education, and parks and salmon.
If you would like more information about the process to apply for Lottery-funded loans and grants through the Oregon Economic Development Department, call toll-free 1-800-233-3306. Or, check the Who To Call page for the number of the Regional Development Office listed in your area: Economic Development.