Illinois Lottery Sales Rose to $3.87 Billion—So Why Did State Proceeds Stay Flat?

Illinois residents spent more on lottery tickets during the latest fiscal year, but the amount ultimately benefiting the state remained relatively flat as video gaming and sports betting expanded much faster.

The Illinois Commission on Government Forecasting and Accountability’s newly released wagering report estimates that Illinois Lottery sales reached $3.869 billion in fiscal year 2026, which ran from July 1, 2025, through June 30, 2026. That was about $113 million more than the previous fiscal year’s $3.756 billion. cgfa.ilga.gov

Yet reporting on the state study places Illinois Lottery revenue at approximately $788 million—roughly unchanged from the prior year. Meanwhile, Illinois collected a record $2.7 billion from all major forms of gambling, an increase of 19.2% in one year and about 90% since fiscal year 2019. myjournalcourier.com

The numbers reveal an important distinction frequently lost in lottery discussions: ticket sales, prize money, player losses and money transferred to public programs are not interchangeable figures.

What Happened to the Rest of the $3.87 Billion?

Of the estimated $3.869 billion in fiscal-year lottery sales, approximately $2.676 billion was returned through prizes.

Subtracting prizes from sales leaves about $1.194 billion, but that is not the Lottery’s profit or the amount automatically transferred to schools. Retailer commissions, vendor costs, administration and other operating expenses still must be paid. The fiscal-year figures are also preliminary and unaudited, so they may be revised when audited results become available. chicagoaddictiontherapy.com

The Illinois Lottery’s official explanation for fiscal year 2025 provides a useful comparison. Of that year’s ticket revenue, more than $2.5 billion went to prizes, $172 million went to retailer commissions and selling bonuses, $200 million covered operating costs, and $796 million supported public education and designated causes.

The Lottery says approximately 21 cents of each dollar spent currently supports education and other causes. Most lottery proceeds go to the Common School Fund, which supports K–12 public education. Illinois Lottery

This means a headline saying the Lottery “made $3.87 billion” would be misleading. That figure represents gross ticket sales, not net state proceeds.

Video Gaming Has Passed the Lottery

For the second consecutive year, video-gaming terminals produced more government revenue than the Illinois Lottery.

Machines located in bars, restaurants, gas stations and other licensed establishments generated more than $3.3 billion in net terminal income during fiscal year 2026. Net terminal income is the amount wagered minus prizes paid—in practical terms, the money players collectively lost on those machines.

State and local governments collected more than $1 billion in associated video-gaming taxes. Illinois had nearly 50,000 terminals operating by the end of the fiscal year, and Chicago’s decision to permit video gaming could expand that market further. Home Page

Sports wagering grew even faster. More than $15 billion was wagered during the fiscal year, generating approximately $593 million in state taxes, according to Capitol News Illinois’ reporting on the commission’s findings. Capitol News Illinois

Those comparisons do not mean lottery play is harmless or that one gambling product is automatically better. They show how the market has changed. Lottery tickets now compete for players’ attention with mobile sportsbooks, prediction products, casino expansion and thousands of continuously available video-gaming machines.

More Sales Do Not Improve a Player’s Odds

The statewide increase in ticket sales does not indicate that Illinois players became more likely to win.

Published odds remain tied to each individual game. Selling more tickets creates more attempts and can produce more winners in total, but it does not improve the probability attached to one ticket. A Powerball ticket, scratch-off or Illinois draw-game entry does not become more valuable simply because statewide sales are rising.

The same principle applies to education funding. Knowing that a portion of lottery proceeds supports schools may affect how a player views the purchase, but the transaction remains gambling—not a charitable donation or an investment. Anyone whose primary goal is supporting education can donate directly without placing the contribution at risk.

LotteryWarrior Take

The most useful lesson in Illinois’ report is financial transparency.

When lotteries publicize billions in sales, readers should ask how much went back to players, how much paid operating and retailer expenses, and how much actually reached public programs. A single large number rarely tells the whole story.

The report also shows why responsible-play messaging must keep pace with a rapidly expanding gambling environment. A lottery ticket may be an occasional purchase, while online bets and video-gaming machines can invite repeated play with little interruption. Players should consider their combined spending across every platform—not maintain separate mental budgets that make the overall total seem smaller.

No number-selection method, ticket scanner, retailer or sales trend can change a random drawing’s mathematical odds. Decide on an entertainment limit before playing, never borrow to gamble and do not chase previous losses.

Reader question: Should state lottery reports make the breakdown of sales, prizes, operating costs and education funding more prominent for players?

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