Your monthly support provides voters the knowledge they need to make confident decisions at the polls. Donate today.
Fact check: Has the Massachusetts Lottery failed to expand funding for education and other public services?
August 3, 2016
By Terry Phillips
The Massachusetts Legislature is considering a bill to permit the online sale of lottery tickets. Whether to enact such a law was the subject of an op-ed debate in The Boston Globe on July 1, 2016. Representing opponents, Milford resident John Tehan characterized the Massachusetts State Lottery as a form of exploitation, noting that “state lotteries have failed to deliver on promises to expand funding for education and other needed services.”[1]
Is Tehan correct? Has there been a decline in funding for education and public services from lottery revenues in Massachusetts?
No. Lottery funding in the form of direct aid controlled by municipalities and used for a range of public services has increased over time.
Background
The lottery in Massachusetts was created in 1971 to provide revenue for the 351 cities and towns of the commonwealth. The first tickets—for a weekly drawing—were sold in March 1972. A variety of other games have been introduced in the decades since, including instant tickets, Megabucks, Mass Cash, Mass Millions, and KENO.[2]
Lottery sales have totaled $90.7 billion since 1972, according to the Massachusetts Lottery Commission. The state has awarded more than $62 billion in prizes and realized a net profit of $19.7 billion for aid to cities and towns.[3]
The disbursed lottery profits are known as Unrestricted General Government Aid (UGGA). Local governments also receive financial assistance from other revenues sources, such as sales taxes.
Most of the 44 states with lotteries earmark ticket revenues for education. But under Massachusetts law, municipal officials have full discretion over how to spend UGGA; they may instead choose to spend it on road repair, schools, or public safety, for instance.[4]
State law dictates a distribution formula for UGGA based on population and taxable property value. The formula is designed to have an equalizing effect by giving a higher percentage of aid to towns and cities with lower property tax revenues.[5]
Lottery games
Currently, Massachusetts law only allows lottery ticket sales by licensed retail outlets. A bill is working its way through the Massachusetts Legislature to authorize the online sale of tickets. In June, a state Senate legislative committee reported S-2352, which would permit the state to sell tickets online and through mobile apps.[6] A state House bill, H-4417, contains nearly identical language to enable internet lottery sales.[7]
Supporters of the Bay State’s proposed legislation argue that online ticket sales are necessary to attract the next generation of players. Opponents say that a new sales platform would increase the purchase of tickets by citizens on the lower rungs of the income ladder as well as compulsive gamblers.
Local aid
The Massachusetts State Lottery has generated $19.7 billion since 1972 for aid to towns and cities.[8] As the chart below indicates, direct aid (UGGA) has increased over time, although indirect aid has recently declined.[9]
Conclusion
The Massachusetts Legislature is considering legislation to permit the online sale of lottery tickets. Whether to enact such a law was the subject of an op-ed debate in The Boston Globe on July 1, 2016. Representing opponents, Milford resident John Tehan claimed that “state lotteries have failed to deliver on promises to expand funding for education and other needed services.”[1]
Profits from the Massachusetts Lottery are disbursed to towns and cities that are free to spend the funds at their discretion. Other streams of revenue, such as property taxes, are primarily used to fund education—although municipalities may elect to use any or all of their portion of lottery proceeds for schools.
The amount of lottery proceeds given to municipalities has fluctuated in the years since the lottery debuted. Over time, and in recent years, direct aid to towns and cities from lottery profits has increased. Therefore, Mr. Tehan’s claim is false.
See also
Launched in October 2015 and active through October 2018, Fact Check by Ballotpedia examined claims made by elected officials, political appointees, and political candidates at the federal, state, and local levels. We evaluated claims made by politicians of all backgrounds and affiliations, subjecting them to the same objective and neutral examination process. As of 2025, Ballotpedia staff periodically review these articles to revaluate and reaffirm our conclusions. Please email us with questions, comments, or concerns about these articles. To learn more about fact-checking, click here.
Sources and Notes
- ↑ 1.0 1.1 The Boston Globe, "The Argument: Should the state Legislature allow the Lottery to offer online gambling?" July 1, 2016
- ↑ Massachusetts Lottery, "About the Lottery," accessed August 3, 2016
- ↑ Massachusetts Lottery, "Complete list," accessed August 3, 2016
- ↑ Massachusetts State Lottery Commission, "Statement of Operations," accessed August 3, 2016
- ↑ Massachusetts Lottery, "How is Net Profit Distributed?" accessed August 3, 2016
- ↑ The 189th General Court of the Commonwealth of Massachusetts, "Bill S.2351," accessed August 3, 2016
- ↑ The 189th General Court of the Commonwealth of Massachusetts, "Bill H.4417," accessed August 3, 2016
- ↑ Direct aid is unrestricted, and municipalities may spend the funds at their discretion. Indirect aid consists of distributions to the Arts Lottery Local Aid fund; the Massachusetts Cultural Council; and the Department of Public Health, which receives MSLC funds that are used to fund the Massachusetts Council on Compulsive Gambling.
- ↑ Massachusetts Lottery, "Historical local aid," accessed August 3, 2016
Contact
More from Fact Check by Ballotpedia
 July 29, 2016 |
 July 29, 2016 |
 July 27, 2016 |
Follow us on Facebook and Twitter
