Simply put, no. In Fiscal Year 1997, the Georgia Lottery transferred 35% of lottery revenues to the Lottery for Education Account in the amount of $581 million. In Fiscal Year 2011, the Georgia Lottery raised $846.1 million for HOPE & Pre-K, accounting for 25.3% of lottery revenues for fiscal year 2011. The Georgia Lottery responsibly manages prize payouts to maximize revenues for the important education programs funded with lottery proceeds.

When Georgia’s lottery legislation was drafted 20 years ago with a 35% target, it represented more of the drawing games that payout at a lower percentage than the instant (scratch-off) games that are more popular now. The “as nearly as practical” language included in the legislation allowed the lottery to be flexible and change with the marketplace.

Lottery case study after case study details the potential for unintended negative consequences of slashing prize payouts to boost profit. While profit percentages may increase – real dollars to beneficiaries decrease. In 1997, the Texas Legislature decreased prize payouts on instant games. The action resulted in a 40% decrease in instant sales ($1 billion sales loss) over a two year period. Although the percentage return to beneficiaries increased from 31.58% to 35.01%, the real dollars to beneficiaries dropped by more than $155 million (-24.5%). After the prize payout reduction was reversed, it took 7 years for instant sales in Texas to return to 1997 levels.

Percentages cannot fund scholarships and Pre-K classrooms, only real dollars.