COLUMBUS, Ohio (WOWO) — Every year, the Ohio Lottery pours more than a billion dollars into the state’s education system—but many residents are asking: Why are school districts still struggling with funding?

That question has resurfaced amid rising property taxes and local ballot initiatives for school levies. While Ohio voters amended the state constitution in 1987 to dedicate 100% of lottery profits to education, the way the money is used paints a more complicated picture.

Where the Lottery Money Actually Goes

Between 2016 and 2025, the Ohio Lottery has provided over $1 billion annually to support education. However, this only represents about 12% of the total education budget, with the bulk of school funding still coming from the state’s General Fund.

In the current biennial state budget, just under $3 billion in lottery profits were allocated to education. But more lottery profit doesn’t necessarily mean more money in classrooms. State lawmakers can use lottery funds to replace, rather than add to, existing education dollars—effectively freeing up General Fund money for other state priorities.

“Lottery funds are touted as benefiting schools directly,” said Olentangy Schools in a public statement. “While this is accurate, the Ohio General Assembly generally uses Lottery profits to offset other general funding.”

How the Funds Are Distributed

So far in Fiscal Year 2026 (starting July 1), the Ohio Lottery Profits Education Fund has distributed over $205 million, with:

• 83% going toward general support for public and charter schools

• 16% specifically directed to charter (community) schools

• Over $33 million earmarked for facility improvement grants—mostly for charter schools

• $1.5 million went toward funding literacy coaches in regional service centers

Notably, public schools do not receive individualized payments, but many charter schools do. For example, KIPP Columbus, a large charter school with roughly 2,200 students, has received over $735,000 this fiscal year alone from the Lottery Fund for facilities.

What About Casinos and Sports Betting?

Other revenue sources—like casinos and sports betting—also contribute, but in far smaller amounts.

• Casino taxes give schools about $66 per student, on average

• Sports betting is expected to yield around $75 per pupil statewide, according to education policy expert Howard Fleeter

However, Fleeter noted, none of this is guaranteed to increase school budgets unless the legislature allocates it separately from the foundation formula.

“Sports betting will not provide a single additional cent to Ohio school district coffers unless the legislature explicitly allocates it,” Fleeter said.

So, Who Decides Where the Money Goes?

The Ohio Lottery sends all its profits to a state education fund—but how that money is distributed lies in the hands of the Ohio General Assembly and the Department of Education and Workforce. So while the lottery is marketed as supporting schools, how much actually reaches classrooms depends on legislative choices, not ticket sales.