How are Lottery funds factored into the state budget woes? Cash in, Cash out, no?

I saw that Sgt Aaron Kennedy, but still dumbfounded as I thought the states lottery programs were self sufficient and added no cost burden upon the taxpayers. Of course indirectly there is a cost burden on those taxpayers who play and lose.

Sgt Spencer Sikder - "Tax on poor and people who don't understand statistics"

They're self-sufficient, in that it's "free" money for the state, but poor accounting practices at the state level will mess things up.

I'm hugely anti-lottery (government ran) for the simple fact that it's a revenue scheme based on "lies, damn lies, and statistics."

Because the lottery produces far more funds than it costs. But it's actually like they are "out of checks" and waiting for a new checkbook.

From the article.
“Please note that the funding to pay winners exists, but the legal authority to issue checks does not.”

With Megamillions and Powerball being national lotteries, curious how Chicago's plan affects the contract/agreement with these two national lotteries?