Since 1987 through FY2015, the Lottery has raised over $2.46 billion for all South Dakotans.

How was it used?

The South Dakota Lottery funds education and develops natural resources.

Funding Education

The Lottery has provided more than $439 million to the state General Fund.  Each year, nearly half of the entire General Fund is used to support local K-12 schools and state universities and technical institutes.

Developing Natural Resources

The Lottery has provided more than $79 million to the Capital Construction Fund.  Local communities use these funds to pay for rural water systems, community drinking water and wastewater improvement projects, and recycling and waste disposal programs.

To Lower Property Taxes

The Lottery also provided nearly $1.9 billion to the Property Tax Reduction Fund, which reduced local property taxes on owner-occupied and agricultural land by 30%. Legislation passed during the 2015 South Dakota Legislature eliminated the Property Tax Reduction Fund.

The Lottery has also provided more than $3.4 million to the S.D. Department of Social Services for problem gambling treatment services. A detailed description of each Lottery product’s beneficiary funds follows.



Lottery revenues come from the sale of scratch tickets, lotto tickets and video lottery play.

Scratch Tickets

All revenue from the sale of scratch tickets is transferred to the state General Fund.  Scratch ticket sales have raised nearly $112 million for the General Fund.

Lotto Tickets

Currently, the first $1.4 million of revenue from the sale of lotto tickets goes to the state General Fund.  Any additional revenue is transferred to the Capital Construction Fund.

Lotto ticket sales have generated nearly $49 million for the General Fund and more than $79 million for the Capital Construction Fund.

The current distribution of revenues took effect in state fiscal year 1997.  Prior to that, lotto ticket revenues were transferred to the General Fund, where they were dedicated for corrections facility construction.

Video Lottery

Revenue generated by video lottery play is called Net Machine Income (NMI).  NMI is calculated as cash put into the machines minus prizes cashed out (cash in – prizes out = NMI).  The state currently receives 50% of NMI.  The private machine owners (licensed operators) receive the other 50%.

As of July 1, 2015, the state’s share of NMI is transferred to the state General Fund (49.5% of NMI). A small amount is kept by the Lottery for operation costs (0.5% of NMI). From FY1997 to FY2015, the state's share of NMI went to the Property Tax Reduction Fund; revenue from video lottery play has raised more than $1.92 billion for the Property Tax Reduction Fund through FY2015. The state's share of NMI was originally transferred to the General Fund.



How are the funds used?


General Fund

The General Fund is state government’s general spending account and supports public and higher education, programs like Medicaid and Temporary Assistance to Needy Families, human services facilities, and the corrections and court systems.

The state Bureau of Finance & Management provides a summary of General Fund receipts and expenditures for the current state fiscal year in its Budget in Brief document.

Capital Construction Fund

The Capital Construction Fund is a temporary stop for monies destined for other state funds:

71.8% is sent to the Water & Environment Fund. This fund is used for rural water system development; to provide loans and grants to local communities for drinking water and wastewater improvement projects; recycling, solid waste disposal and waste tire projects; and regional landfills.  More information on natural resource development projects is available from the Dept. of Environment & Natural Resources.

25.6% is sent to the Ethanol Fuel Fund.  This fund provides $4 million in annual production payments to qualified South Dakota ethanol producers.

2.6% is sent to the State Highway Fund, which is currently used for construction and maintenance of state highways and bridges and for public transportation.  More information about the state highway system and public transportation is available from the Dept. of Transportation.

A portion of the Capital Construction Fund was previously sent to the Public and Special Transportation Assistance Fund.