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Hill: Where lottery dollar goes
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Sen. Jack Hill
Guest Columnist
Updated: Oct 5, 2009, 7:55 PM
Published: Oct 5, 2009, 7:58 PM

Over the past few weeks this column has discussed the Lottery for Education expenditures and reserves for both the HOPE Scholarship and Pre-Kindergarten Program. Last week’s column explored possibilities for limiting the expenditure side of the Lottery for Education finances by further restricting the HOPE Scholarship. This week, we’ll examine the operations of the Georgia Lottery and explore the revenue side of this issue.  
It is widely publicized that Georgia’s Lottery helps support educational programs within the state. Last year alone, the lottery sold $3.5 billion in gross lottery receipts, yet only $868 million of that was deposited in the Lottery for Education account. Where did the rest of those lottery funds go? For each one dollar ticket sold:

• Twenty-five cents is deposited in the lottery for education account to spend on educational programs. In 1995, two years after the lottery’s inception, 35 cents was deposited for every dollar and that percentage has steadily declined every year except for 2001.

• Sixty-five cents is paid in prizes. Of this, seven cents is paid out immediately for instant win tickets and is never realized by the Georgia Lottery. The proportion spent on prizes has steadily increased since the lottery first began in 1994.

• Six cents is paid to retailers for commissions and one cent is awarded as bonuses for selling winning tickets.  Retailers are compensated a set percentage of ticket sales, a ticket cashing bonus for validating and paying prizes up to $600, and a winning jackpot ticket incentive for certain online games.

• Lastly, 4 cents is spent on operating and gaming expenses. Operating expenses include advertising, marketing, merchandising, personnel services, depreciation, rent, professional fees and bad debt expenses. The Georgia lottery also has contracts with private corporations to provide gaming products, services, instant ticket printing and licensing. Payments to the two major suppliers, Online Gaming Systems and Services and Instant Ticket Printing and Associated Services, are determined based on a percentage of gross sales.  

State law

Georgia statute states that “as nearly as practical,” net proceeds should equal 35 percent of lottery proceeds. At the end of each quarter, all net proceeds should be deposited by the Georgia Lottery into the Lottery for Education account established by the Treasury. The statute also says “as nearly as practical” 45 percent of actual lottery sales should be made available as prize money. But since the lottery first began selling tickets in 1994, it has only deposited more than 35 percent of lottery proceeds in FY95, one of the two years it was only required to deposit 30 percent.

Since then, the Georgia Lottery has not met the 35 percent mandate established by the legislature. While the actual amount deposited into the Lottery for Education account has increased every year except FY98, the percent deposited compared to total proceeds has steadily declined. At the same time, the percent spent on prize money has steadily increased.

Other state lottteries

In 1964, the first state lottery, originally called the “Sweepstakes,” was created by the New Hampshire legislature.  Since then, state-run lottery programs have been established in forty-three states across the nation. Of southern states, only Alabama, Mississippi and Arkansas do not have a state lottery.

Unlike Georgia, many states use lottery funds to supplant state general funds for education, making Georgia’s practice of funding only new educational programs truly unique. For example, Florida uses their lottery funds to supplement the state’s education system, but also finances a scholarship program and a Pre-K program as well.  

The Census regularly collects data from all state lottery programs, including the amount paid in prizes, the amount remitted to the state, and the amount spent on administration. The total reported to the Census does not include commissions paid to retailers, or in Georgia’s case, the amount immediately paid out for instant win tickets. So while the Georgia Lottery reports it only spent 58 percent on prizes, if the amount awarded in instant win tickets is added to that total, the proportion increases to 65 percent.  

The amounts reported to the Census were then compared to the gross sales reported by the National American Association of State and Provincial Lotteries to get more accurate proportions.

With the available data from FY07, only a handful of states pay a higher percentage in prizes than Georgia, with the national average at 59 percent.  

In terms of the proportion remitted to the state, Georgia has one of the lowest rates, 25 percent, and falls below the national average of 28 percent. With regards to lottery administration costs, Georgia spends only 4 percent of gross lottery sales on general operating expenses and 6 percent on commissions to retailers. This is below other states which spend an average of 6 percent on general operating expenses and 7 percent on other expenses, which includes but is not limited to commissions to retailers.  

Below is a comparison of Georgia, Florida and the national average as it relates to how lottery funds are expended.
                 Georgia    Florida    Natl.
                                average
Prizes         65%         60%    59%

To State      25%         30%    28%

Operations    4%          4%    6%

Other           6%          6%    7%
(including commissions)
    
Lacking new growth of some magnitude, and as Georgia’s lottery matures, decisions will have to be considered by policymakers for the future stability of HOPE and Pre-K.

I may be reached at
234 State Capitol, Atlanta, GA 30334
(404) 656-5038 (phone)
(404) 657-7094 (fax)
E-mail at Jack.Hill@senate.ga.gov
Or call toll-free at
1-800-367-3334 day or night
In Effingham County, Progress Starts With a Plan
Guest Editorial by Susan Kraut, President/CEO of Effingham County Chamber of Commerce
Susan Kraut column
A sold-out crowd of more than 150 business and community leaders gathered at Effingham’s New Ebenezer Retreat Center Sept. 24 for the Chamber of Commerce’s annual State of the County Luncheon, hearing updates on economic growth, education, and infrastructure across Effingham County. (Submitted photo)
Susan Kraut
Updated: Oct 1, 2025, 2:41 PM
Published: Oct 1, 2025, 2:36 PM

At last Wednesday’s sold-out State of the County luncheon, more than 150 business and community leaders heard a message that resonated throughout the program: We have a plan, and we’re sticking to it.

Effingham County City Manager Tim Callanan opened his remarks with that thought. It was simple, but powerful. In an era when news feeds churn with controversy and change, it served as a reminder that behind the scenes, steady planning is happening – and those plans are beginning to bear fruit.

Businesses and residents often express frustration about roads, zoning, parks, schools or economic development, feeling that growth is outpacing action. The truth, as Callanan underscored, is that many of those actions are already underway, rooted in master plans that cover everything from transportation and stormwater to parks, communications and public safety.

The challenge is that plans only matter if people know they exist. Too often, businesses and citizens forget these plans are in place, don’t know where to find them or don’t realize how to weigh in at the right moments. When that happens, the community loses the chance to shape its own future and to express the value of those plans – why they matter and why they’re worth supporting.

Planning delivers progress

Last week’s luncheon highlighted how “plans” translate into progress. Mayor Kevin Exley shared Rincon’s ranking as one of Georgia’s safest cities and the city’s launch of the Citizen Central app – a small but meaningful step toward accessible local government. Springfield’s new city manager, Lauren Eargle, outlined a capital improvement plan that includes sidewalks, drainage and playgrounds, along with the less glamorous but vital work of a $35 million wastewater plant upgrade. Guyton’s city manager, Bill Lindsey, discussed contracting with planning consultants, winning grants for sidewalks, and reinvesting in Bazemore Park and downtown revitalization. These aren’t random acts; they’re evidence of intentional planning.

The school district provided another example when Superintendent Yancy Ford noted that Effingham now serves nearly 14,500 students speaking 33 languages. That diversity is an asset – but it also requires careful, proactive investment to maintain the high standards families expect. His most powerful point concerned ESPLOST, the 1-cent Education Special Purpose Local Option Sales Tax. Thanks to community support over the years, ESPLOST has built classrooms, purchased buses, enhanced safety measures, provided Chromebooks to all students, added security cameras and access-control systems, created inclusive playgrounds and athletic facilities open to the community, supported hands-on learning spaces like Honey Ridge, and established the College & Career Academy – a facility credited by Ford as helping lift the district’s graduation rate above 90% and expanding career pathways for a rapidly diversifying student body. And it has done so without incurring long-term debt.

Why ESPLOST matters

Among these examples of planning, none is clearer than ESPLOST — a long-term, voter-approved blueprint for funding education, renewed every five years to stay ahead of growth. The November ballot will again include the ESPLOST renewal, giving voters the opportunity to continue this proven approach to funding school facilities, technology, safety, transportation, inclusive playgrounds and community-accessible athletic fields. Renewing ESPLOST does not create a new tax; it simply extends the existing 1-cent sales tax, allowing residents, visitors and businesses to contribute to improvements that benefit every student. Without it, many of the projects parents and community members count on – such as new buses, safer schools, modern classrooms, career pathways and accessible playgrounds – would stall or require long-term debt.

Renewing ESPLOST is about more than bricks and mortar. It is not a reactionary measure but part of an intentional, ongoing plan to manage growth and maintain education – reinforcing the theme that plans become progress. As the district’s population becomes increasingly diverse and enrollment continues to rise, sustained ESPLOST funding is crucial to scaling programs, expanding facilities and maintaining the high graduation rates and opportunities that families expect. It is about protecting Effingham County’s tradition of educational excellence, maintaining property values and ensuring the workforce being prepared in our schools is ready to meet the needs of local employers. It is an investment in students, families and the future of our communities.

A call to the community

Effingham County is growing. Growth brings challenges, but it also brings opportunities. As the luncheon demonstrated, leaders at every level are working to guide that growth thoughtfully. The next step belongs to business owners, parents and neighbors – to lean in, stay informed and participate.

When hearing about a master plan, a referendum or a public meeting, don’t assume it is someone else’s job. Look up the plan, attend the forum, ask questions and cast a vote. That is how plans become progress – and how a yes vote on ESPLOST reaffirms and continues the community’s long-term plan for educational excellence, reinvesting in Effingham County’s future.