In November 1986, 64 percent of Kansas voters approved a constitutional amendment authorizing a state lottery. The Kansas Lottery Act was passed the following spring and signed into law in May 1987. Six months later, on November 12, the Kansas Lottery began ticket sales with the scratch game Up and Away. Sales during the first week were $7 million.
The first draw game was Lotto*America, which began in February 1988; it was followed by Cash Lotto in June. The Lottery was successful enough in its early months to repay its $2.8 million startup loan to the state in June 1988, one year before it was due.
Today, the Kansas Lottery offers a variety of scratch tickets and pulltabs, along with the draw games Powerball, Mega Millions, Hot Lotto Sizzler, Super Kansas Cash, 2by2 and Pick 3, and the monitor draw games Keno and Kansas Hold’Em. The latter debuted in 2006 as the first lottery draw game in the world modeled after Texas Hold’Em poker.
Kansas also pioneered eScratch, the first interactive Internet lottery game of its kind, which ran from May 2004 until December 2007.
The mission of the Kansas Lottery is to produce the maximum amount of revenue possible for the State of Kansas while insuring the integrity of all games. That mission took on even greater importance when the Lottery was tasked with running casinos in the state, which were legalized in 2007 in the Kansas Expanded Lottery Act, which also extended the Lottery until 2022. The Lottery now oversees gaming at three casinos; the first opened in late 2009.
Lottery proceeds, which include gaming revenues, are transferred to the State Gaming Revenues Fund. Of the first $50 million in annual revenues, $80,000 is deducted for the Problem Gambling and Addictions Grant Fund; the balance is allocated as follows:
- The Economic Development Initiatives Fund receives 85 percent;
- The Correctional Institutions Building Fund receives 10 percent; and
- The Juvenile Detention Facilities Fund receives 5 percent.
Any revenues in excess of $50 million are transferred to the state’s General Fund.
As a result of 2003 legislation, the Kansas Lottery also offers specially-designated games that benefit veterans programs that help provide basic things for Kansas’ military veterans.
Year established: 1987
Instant games, Pull-tabs, Pick 3 (3-digit game), Keno, Super Kansas Cash (5/32 + 1/25), Powerball, Mega Millions, Hot Lotto, Kansas 2by2, Kansas Hold’Em
Since the Kansas Lottery's start up in November 1987, through June 30, 2012, Lottery ticket sales have produced more than $1.3 billion in revenues transferred to the State of Kansas. The Lottery's Fiscal Year 2012, which ended June 30, 2012, produced $246.1 million in sales and $72 million transferred to the state. The Kansas Lottery Act requires that a minimum of 45 percent of total sales be paid back to the players through the prize fund. In fiscal year 2012, the Kansas Lottery paid out 57 percent in prizes. The State Gaming Revenues Fund received 29.1 percent of ticket sales; cost of sales was 3.9 percent (which covers online vendor fees, telecommunications costs and instant ticket printing); 5.9 percent was paid to Lottery retailers for commissions and bonuses; and 4.0 percent covered administrative expenses (salaries, advertising, depreciation, professional services and other administrative expenses.)
Transfers from the SGRF are made according to the following breakdown: The first $50 million is divided by a formula which first transfers $80,000 to the Problem Gambling and Addictions Grant Fund. Then 85 percent of the balance is transferred to the Economic Development Initiatives Fund, 10 percent to the Correctional Institutions Building Fund, and 5 percent to the Juvenile Detention Facilities Fund. Any receipts in excess of $50 million must be transferred to the State General Fund.
All net profits from Kansas Lottery Veterans Benefit instant scratch tickets are dedicated to programs that directly benefit the state’s military veterans. Since the legislature authorized these special tickets in FY04, the Kansas Lottery has transferred more than $1.3 million to veterans programs. Current beneficiaries are the Veterans Enhanced Service Delivery Program, National Guard Scholarships and Kansas Veterans Homes.
The Kansas Lottery also owns and operates gaming at three Kansas casinos. All transfers to the State from state-owned and -operated casino gaming are placed into the Expanded Lottery Act Revenue Fund for purposes of reduction of state debt, state infrastructure improvements and reduction of local ad valorem tax.