Arizonans bought a record $1.52 billion in lottery tickets this year, fueling hundreds of millions of dollars for state programs ranging from higher education and transportation to foster-child advocacy and conservation efforts.
Arizona's lottery was launched in 1981 after voters passed a ballot initiative authorizing the program. The first scratch ticket was sold for a dollar on July 1 that same year. Since its inception, money raised has totaled $6 billion in state funding.
This year, the Arizona Lottery hit a new record in sales.
"We are growing and we're investing like never before," said Alec Thomson, executive director of the Arizona Lottery.
In addition to the funds collected by selling lottery tickets, nearly a third of the unclaimed prize
money is directed to a program that advocates for Arizona's foster youth in court. The program, called Court Appointed Special Advocates, or CASA, received nearly $7.5 million last year through winning tickets that went unclaimed after more than 180 days.
"This means a caring voice that advocates for the children, for their health, their developmental needs, a permanent home, and of course their wishes," said Caroline Lautt-Owens, director of the Dependent Children's Services Division within the Arizona Supreme Court.
Other unclaimed money goes toward funding dual enrollment programs in partnership with tribal colleges, and to support Arizona's Victims' Rights Fund and the Internet Crimes Against Children task force. A little more than half of the unclaimed prize money is returned to fund new games and prizes.
Where does money raised from the Arizona Lottery go?
The Arizona Lottery helps fund 17 different programs each year, as mandated by state law. They range in focus from business development to environmental conservation.
Here is how much money has been given since 1981, excluding sales from this year:
- Higher education: $459 million
- Health and human services: $564 million
- Environmental conservation: $473 million
- Business and economic development: $1.18 billion
- Added money to Arizona's general fund: $3.1 billion
Lottery money sent to the state's general fund totaled up to more than $217 million in 2025. Arizona's total general fund was $17.8 billion that same year. The state's general fund is managed by the state Legislature and signed by the governor.
In fiscal year 2025, more than $37 million of lottery funds went toward higher education causes. That primarily consists of support for bond agreements for university construction. More than $7.5 million went to Healthy Families Arizona, a program offering resources to the families of newborns living with mental health issues, drug abuse or bonding issues. Roughly $3 million went to the Arizona Biomedical Research Centre, and a million dollars funded nonprofit groups offering transitional shelter and support to people facing homelessness.
More than $11.5 million funded the Local Transportation Assistance Fund for mass transit projects and $10 million allowed the Arizona Department of Game and Fish to pay for public education programs, schoolyard habitats and other conservation efforts.
What support is there for gambling addiction?
Arizona has created several programs designed for people struggling with gambling addictions and severe financial hardship.
Several of the groups have an interagency agreement under the Division of Problem Gambling within the Arizona Department of Gaming. The division subsidizes treatment for those with a gambling addiction as well as friends and loved ones who are impacted. The Arizona Lottery devoted $300,000 in fiscal year 2025.
Contact information for providers participating in the Treatment Assistance Program is available on the website for the Division of Problem Gambling. Arizona also runs a 24/7 helpline at 1-800-NEXT-STEP.
Government-run lottery programs, which exist in 45 states across the United States, offer substantial sources of funding without increasing taxes on residents. But several economic studies suggest certain demographics buy lottery tickets more often than their counterparts, particularly those from a low-income background.
In an Aug. 4 press conference, the executive director of the Arizona Department of Gaming, Jackie Johnson, said the department is committed to promoting responsible lottery participation. That includes bolstering public awareness of the state's problem gambling treatment programs.
"We are excited to continue working together to educate consumers, promote responsible play, and connect Arizonans with the resources they need," Johnson said.
Helen Rummel covers state politics and higher education for The Arizona Republic. Reach her at hrummel@azcentral.com. Follow her on X, formerly Twitter: @helenrummel.
This article originally appeared on Arizona Republic: Arizonans spent record $1.5B on lottery. Here's where the money goes
