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State operated lotteries have recently been asserted by public administrators and academicians as panaceas for eradicating revenue disparities existing across public school districts in the American states. The purpose of this research project is to empirically confirm the accusations against attributing credibility to this social intervention program because educational disparity portrays a grave injustice in the U.S. Pooled time series cross sectional analysis is the methodology mechanism employed to test the data in this research project. This study found that lotteries, since their inception, despite expressed high regards, display insufficient significance in generating revenue for educational programs in the southern states. One highly probable reason for the lottery’s insignificant effect in generating educational revenue is the idea of fungibility. One of the major limitations of this study is the small sample size of only using southern states to test the theory that lotteries contribute significantly to educational expenditures in the southern states of America. Using pooled time series cross sectional analysis of all fifty states is a highly recommended approach for future studies concerned with assessing the impact of lotteries on public education expenditures.

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