INDIANAPOLIS — The Hoosier Lottery brought in a near-record $1.7 billion in sales in fiscal year 2024.
A chunk of that money goes back to the State of Indiana, but where it ends up might surprise you.
Education, roads: Many lottery players believe money goes to help schools and potholes
At Silver Express on West 10th Street, it’s an endless stream of customers buying lottery tickets.
“You can’t win it if you’re not in it,” said player Lisa Mattingly.
“It’s just the chance of getting the big one,” said customer Tim Moore.
Here’s a breakdown of where the lottery money goes (FY20-FY24):
- 66%: Prizes to winners
- 7%: Commissions to retailers
- 5%: Admin expenses/problem gaming program
- 22%: Transfers to the State
WRTV Investigates asked lottery players where they think the lottery money goes.
“Roads and taxes,” responded Austin Smithey.
“It goes to schools and I’m not sure where all it goes,” said Lisa Mattingly.
“I hope it goes back into roads which we need on the west side of Indianapolis,” said Tamara Feterman.
WRTV Investigates found local communities in Indiana do not get lottery money directly to fix roads.
Neighboring states like Ohio, Kentucky and Michigan use some if not all of their lottery revenue for education, but not Indiana.
Hoosier Lottery funds teacher retirements and police pensions
Since the beginning of the Hoosier Lottery in 1989, the lottery has transferred $7.8 billion to the state.
To get a breakdown by year, WRTV Investigates filed a records request with the Hoosier Lottery.
For fiscal year 2024:
- $30 million a year went to police and firefighter pensions
- $30 million funded teacher retirements
- $307 million went into the Lottery Surplus Fund
Indiana has divided up the lottery money into these three buckets since the lottery’s inception in 1989.
Most of the Lottery Surplus Fund goes to lower excise taxes you pay when registering your vehicle.
WRTV Investigates also learned a small chunk of the Lottery Surplus Fund goes back to the General Fund, which the state can spend on all kinds of things including education, transportation, public safety and economic development.
Records show that while the $30 million each for police/firefighter pensions and teacher retirements have remained the same since Fiscal Year 2000, the Lottery Surplus Fund continues to grow each year.
WRTV Investigates sat down with Hoosier Lottery Chief of Staff Carrie Stroud who explained they have no control over what the state does with its portion, which was $367 million in FY 2024, records show.
“It’s a decision by the General Assembly, the legislature,” said Stroud. “Our mission is to maximize revenues to the state in a socially responsible manner.”
She points to state statute, which outlines exactly where the lottery money goes.
“I can’t make that decision,” said Stroud. “That’s a legislative decision.”
“Something we could look at”: Lawmakers look at expanding use of lottery money
WRTV Investigates met up with State Senator Ron Alting, R-Lafayette, at the statehouse.
"I would love to use that money to support public schools,” said Alting. “In fact, I've always said we need a steady stream of revenue coming in to help our public schools on funding."
Sen. Alting previously carried a bill to allow sports betting revenue to go to education, but the bill failed.
The topic of using lottery funds to help fund state government is gaining traction, given the recent $2 billion shortfall the legislature had to overcome.
Rep. Ethan Manning, R-Logansport, filed another bill (House Bill 1432) last session to legalize online lottery, also known as iLottery.
The bill failed to make it out of the Ways and Means Committee, but Manning is considering bringing it back next session.
"We have seen iLottery be successful in other states, and the revenue it creates would go back to our General Fund for priorities such as K-12 education, public safety and pensions,” said Manning. “It’s too soon to determine which bills I will personally file during the 2026 legislative session, but I anticipate iLottery to be an important topic."
Supporters say legalizing online lottery would bring in an additional $60 million a year for Indiana.
"I think it's an open door,” said Alting. “I think it's something we could look at."
Alting believes the bill failed because iLottery is often paired with legalizing casino games, and opponents have raised concerns about the impact on addiction, mental health as well as brick and mortar casinos.
"The problem is it's always been with the poison pill, which is iGaming, and if you could separate the two, I think it would have a better chance,” said Alting.
The Hoosier Lottery says they are ready to take on the administration of iLottery, if the legislature approves it.
“We do see there would be incremental revenues sent to the state if and when we're able to sell iLottery,” said Stroud.
As Indiana spends most of its lottery money on teacher retirements, police/firefighter pensions, and offsetting vehicle excise taxes, other states use their lottery revenue for things like:
- Veterans
- Tourism
- Drug enforcement
- Education
- Parks
- State highways
- Mental health
Lottery players WRTV Investigates spoke with say they support Indiana’s causes, but would be in favor of helping even more.
Contact WRTV Investigates Kara Kenney at kara.kenney@wrtv.com or 317-432-9704.
