Arkansas lottery raises $8.7 million for college scholarships in October, up from 2024

The state's lottery revenue showed a year-over-year decline in October, but the amount raised for college scholarships by the Arkansas Scholarship Lottery increased from $6.3 million to $8.7 million, according to a report.

The lottery's total revenue in October decreased from $50.9 million to $48.4 million in the same month in 2024 as the lottery's scratch-off ticket revenue declined and draw-game revenue inched down compared to a year ago.

The jackpot for one of the lottery's draw games, Mega Millions, was estimated to be $754 million on Oct. 31 and is now estimated at $965 million for Friday's drawing.

The figures on the lottery's finances in October are in the lottery's monthly report to Gov. Sarah Huckabee Sanders and the Legislative Council's lottery oversight subcommittee co-chairs, state Sen. Ricky Hill, R-Cabot, and state Rep. Justin Gonzales, R-Okolona.

The lottery started selling tickets on Sept. 28, 2009 and has helped finance Arkansas Academic Challenge Scholarships for more than 30,000 students during 11 of the previous 15 fiscal years.

Lottery Director Sharon Strong said Thursday she is encouraged by the lottery's performance in October.

"(I) always look at the sales, but to me the net proceeds number is the most important because that's our mission," she said in an interview. The amount raised by the lottery for college scholarships has beat the lottery's projected budget in October and the lottery's projected budget during the first four months of fiscal year 2026, she noted.

The $8.7 million raised for college scholarships in October exceeded the projected budget for the month by $520,207, while the $48.4 million in total revenue in October beat the projected budget for the month by $958,164, according to the lottery's records.

In October, the lottery's scratch-off revenue slipped from $41.4 million in 2024 to $38.9 million this year, while the lottery's draw-game revenue declined slightly from $9.5 million in 2024 to $9.4 million this year, according to the lottery's reports.

Strong said the scratch-off revenue declined in October of this year from the same month in 2024 because "we only had one game launch (in October of this year) as opposed to the two that we usually have."

In October, the lottery's Mega Millions revenue increased to $2.2 million this year from $1.2 million in 2024, while the lottery's Powerball revenue declined from $2.1 million in 2024 to $1.9 million this year, and the lottery's Lotto revenue declined from $1.2 million in 2024 to $648,782 this year, according to the lottery's reports.

Mike Smith, the lottery's gaming director, noted Thursday that the Powerball jackpot reached $1.8 billion during early September.

"If we didn't have that, I suspect this (nearly $1 billion Mega Millions jackpot) would be getting more traction right now," he said. "But I think now they are waiting for it to be over $1 billion, and this is the first time with our new enhanced game that it has been to this height, so we are in a new territory with it as well."

Smith said the lottery's Mega Millions ticket sales have increased so far in November, but "maybe not as much as we would have expected had we had not the (the $1.8 billion Powerball jackpot in early September) so close to it."

The lottery's other draw games included Cash 3, Cash 4, Fast Play, Lucky for Life and Natural State Jackpot.

The lottery's draw-game ticket sales are more profitable to the lottery than scratch-off ticket sales.

Fiscal 2026 started July 1 and ends June 30, 2026.

During the first four months of fiscal 2026, the lottery's revenue totaled $200.6 million, compared to $196.7 million in the same period in fiscal 2025.

The lottery's total revenue has exceeded the projected budget for the first four months of fiscal 2026 by $15.4 million, according to lottery records.

The amount raised for college scholarships during the first four months of fiscal 2026 totaled $36.2 million compared to $30.6 million in the same period in fiscal 2025.

The lottery's net proceeds for college scholarships has beat the lottery's projected budget for the first four months of fiscal 2026 by $3.7 million, according to lottery records.

At the end of each fiscal year, the unclaimed prize reserve fund balance -- minus the $1 million that is retained in the reserve -- is transferred to college scholarships. After receiving $1.6 million in unclaimed prizes in October, the lottery's unclaimed prize reserve balance totaled $4.6 million on Oct. 31.

In fiscal 2026, the lottery is projecting total revenue of $563.7 million and raising $105.7 million for college scholarships, according to its records.

In fiscal 2025 that ended June 30, the lottery's revenue totaled $578.7 million and the lottery raised $111.3 million for college scholarships.

In fiscal 2024, the lottery raised a record amount of money for college scholarships at $129.1 million based on total revenue of $613.6 million.

The lottery has raised more than $100 million for college scholarships in a fiscal year during four fiscal years since it began selling tickets nearly 16 years ago.

https://www.arkansasonline.com/news/2025/nov/13/arkansas-lottery-raises-87-million-for-college/