With about 97 cents of each dollar spent on the Lottery returned to Michiganders in the form of contributions to the School Aid Fund, prizes, and commissions to local vendors … the Lottery makes a real difference
Over the years, Michigan Lottery has been one of the biggest contributors to the School Aid Fund, which serves to support public education programs throughout the state.
In 2023 alone, the Lottery contributed $1.3 billion to the School Aid Fund, marking the fifth consecutive year its contributions to the Fund have extended beyond a billion dollars, and taking its overall contributions up to $28 billion.
The announcement of the Lottery’s contributions in 2023 came just a couple of weeks ago, with both the Michigan Lottery and Gov. Gretchen Whitmer announcing the numbers and reiterating the Lottery’s positive impact on public education throughout the state.
Michigan Lottery’s Revenue Breakdown
Over the Fiscal Year 2023, the Michigan Lottery has distributed its revenue in the following way:
- 61% towards player prizes
- 27% towards the School Aid Fund
- 9% towards retailer and vendor commissions
- 3% towards Lottery’s operating and administrative costs
The state law indicates that all profits made by the Michigan Lottery — after the payment of player prizes and the administrative costs associated with the Lottery’s operations — must go towards the School Aid Fund, supporting public education for the people of Michigan.
With the Lottery now paying more than $1 billion into the Fund for five years running, a total of $6.2 billion has been contributed over the five year period along.
Discussing the contributions of the Michigan Lottery to the School Aid Fund, Gov. Whitmer said: “The Michigan Lottery’s fifth-straight contribution of more than $1 billion to our state’s School Aid Fund will improve education outcomes and support students.
“In addition to investing in our schools, each Lottery ticket purchase also supports local businesses, building on our economic momentum. With about 97 cents of each dollar spent on the Lottery returned to Michiganders in the form of contributions to the School Aid Fund, prizes, and commissions to local vendors and retailers, the Lottery makes a real difference for communities across Michigan. Congratulations to the Lottery team on another successful year.”
While the $1.3 billion in contributions made in 2023 are certainly significant, the Lottery was not able to beat its own record set in 2021, when it contributed $1.419 billion to the cause.
More Than $3 Billion in Prizes Paid in 2023
As Gov. Whitmer reiterated in her statement, 97% of all the revenue made by Michigan Lottery goes back to Michiganders in one form or another.
In 2023, over $3 billion of that revenue went back to the players in the form of prizes,
marking third consecutive year that Michigan Lottery players have won over $3 billion. Cumulatively speaking, the Lottery has paid over $50 billion in player prizes since being founded back in 1972.
On top of that, Michigan retailers and vendors earned over $350 million in commissions, taking that number up to $1.7 billion over the last five years alone.
With more than 10,000 locations across the state selling lottery tickets in 2023, and 600 of those selling over $1 million in tickets, it is clear that Michigan Lottery is a valuable factor in the state’s overall economy.
Michigan Lottery the Biggest Contributor in the State
Michigan’s thriving gambling industry has seen close to $2 billion in taxes and contributions paid by the different gambling entities in 2022, and the final numbers for 2023 are likely to be even bigger.
Of that $2 billion, Michigan Lottery alone was the biggest contributor in 2022, paying $1.25 billion into the School Aid Fund.
While the final numbers for 2023 are still not in, it is clear that the $1.3 billion in contributions to the School Aid Fund will once again be the biggest contribution for the year as well, with all other gambling contributing less than $1 billion to the overall number.
Despite online sports betting, casinos, and poker all being legal in Michigan in 2023, the Michigan Lottery remains by far the most socially useful entity in the entire industry.
