A MESSAGE FROM GARY GRIEF, EXECUTIVE DIRECTOR, TEXAS LOTTERY COMMISSION
Welcome to the Texas Lottery Website. I'm glad you have taken the time to learn about the Texas Lottery and the important contributions that the Texas Lottery makes to public education and veterans' assistance in Texas.
The Texas Lottery ended fiscal year 2017 on Aug. 31, 2017 with $5.077 billion in sales, breaking the sales record we set just last fiscal year and resulting in a total contribution of $1.334 billion to Texas. This is the 14th consecutive year that the Texas Lottery generated more than $1 billion in revenue for Texas and the seventh consecutive year that the Texas Lottery reached record sales.
Due to the amazing work of our staff, retailers and our trusted vendor partners, the Texas Lottery was able to offset the lack of record jackpots in FY 17 with record-setting scratch ticket sales, which led to our outstanding sales and revenue results. Scratch ticket sales for FY 17 totaled $3.94 billion, the highest scratch ticket sales in Texas Lottery history.
The Texas Lottery has experienced an $890 million increase in sales over the past five years representing 21 percent growth over that period of time. I want to thank Texas Lottery players and our nearly 18,000 retailers for their outstanding support. We are excited to celebrate the extraordinary growth we have achieved.
This year's revenue transfer included $1.313 billion to the Foundation School Fund and $16.2 million to the Fund for Veterans' Assistance. The Texas Lottery has now contributed more than $21 billion to Texas public education and more than $80 million to Texas veterans since the dedication of such funds by the Texas Legislature.
The Foundation School Fund, administered by the Texas Education Agency, funds the operational needs and special program services for Texas school districts including teacher salaries, utilities, equipment, bilingual education, special education, gifted and talented education, and career and technical education.
The Texas Veterans Commission Fund for Veterans' Assistance makes grants available to eligible charitable organizations, local government agencies, and Veterans Service Organizations that provide direct services to Texas veterans and their families. With 1.7 million veterans spread across the state, these programs provide financial assistance, transportation services, Post-Traumatic Stress Disorder counseling and housing assistance.
In addition to record-breaking sales, our careful spending kept administrative costs to just 4.6 percent of FY 17 sales, one of the lowest administrative expenditure rates in the country. Our continued success is partially attributed to the cost containment measures taken in our administrative budget. Any unspent administrative funds are returned directly to the Foundation School Fund.
Texas Lottery players and retailers also had a great year. Players collected $3.327 billion in prizes, the highest amount of prizes paid out in Texas Lottery history. For the Lottery's retailers that sell lottery tickets across the state, commissions amounted to $253.9 million, the highest commission paid to retailers in Texas Lottery history.
We are thrilled to have surpassed our previous sales record and I want to thank all of our players, retailers, vendors and staff for this outstanding achievement. All of us at the Texas Lottery recognize and appreciate our responsibility to generate revenue for Texas and we continue to strive to increase funding for Texas education and veterans through the use of technology and innovations. On behalf of the Texas Lottery, thank you for your support.