"Lottery funds" refer to the money generated from ticket sales for a lottery. This funding is then used for various purposes such as supporting education, healthcare, and public services. Full definition
Furthermore, in 2012 the legislature changed the lottery formula so that a smaller percentage goes to education and has dipped into lottery funds for other state programs. (roycooper.com)
Another interesting example is that a number of religious organisations will not apply for lottery funding since it represents the proceeds of gambling. (educationbusinessuk.net)
These new funds will be added to and not replace existing state aid, including lottery funding for schools. (nydailynews.com)