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As I understand it, th3e profits from the lotteries go to education. All the winnings that are to be paid out go into a fund. There is a time limit (6 months, I think) to claim prizes. After that time period passes, the money is removed from the fund used to pay the winners.
What is legally binding to do with the unclaimed winnings, I have no idea. I would suspect that if the usage of those particular funds was illegal it would have been challanged in court prior to getting to the ballot, as there were plenty of people opposed to it.
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