TEXAS LOTTERY INFORMATION
The Texas Lottery is administered by the Texas Lottery Commission. The Comptroller's Office was responsible for the start-up of the lottery, this office now has no connection with the games. Prizes account for 53 percent of the overall money spent on lottery tickets. Lotto, Cash 5, and Pick 3 have prizes of 50 percent while the prizes for instant scratch-off games vary by the type of game. Retailers receive a 5 percent commission for selling the ticket. The Texas Lottery Commission uses 7 percent for administration of the lottery. The administration money pays for printing tickets, advertising, security, retailer bonuses and the lottery operator, GTECH. The remaining 35 percent goes to the state.
The Texas Lottery Commission is entitled to retain 12 percent for administration and retailers. Any unused administration money is added to the state's share.
Starting September 1, 1997 proceeds from the state lottery after payment of prizes and administrative expenses are placed in the foundation school fund. This fund is used to finance public education in Texas. Prior to this change, lottery dollars were placed into the state's general fund, which is appropriated by the state legislature for a variety of government functions including education.
Jackpot prizes must be claimed at Lottery Headquarters in Austin. Jackpot winners are not official until validated through the Lottery's security system. Prizes up to $599 may be claimed at any Lotto Texas retailer. Prizes of $600 or more may be claimed at any of the 24 regional lottery claim centers.

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