A new report shows that Tennessee’s lottery revenue proceeds are shrinking, putting the state’s scholarship programs – which depend on these funds – at risk. The Tennessee Education Lottery Scholarship portfolio consists of 13 programs serving students pursuing higher education. Annual lottery proceeds fund all of these programs with the exception of Tennessee Promise, which has a $1.3 billion endowment. According to an analysis by ThinkTennessee, net lottery proceeds available for scholarships fell 21.9% between the 2022 and 2025 fiscal years. Net lottery proceeds refer to the money left over from ticket sales after the lottery pays its prizes and covers its own operating costs.