Legislation created the Washington Lottery was signed on July 16, 1982 by the Washington Governor John Spellman. While many lotteries were created with the sole purpose to fund education, at the time of Washington's Lottery creation Washington was in a recession and thought funds from the lottery would be better served going to the Washington State General Fund. The Washington State General Fund provides support to school, human services programs, natural resources and government programs.

Washington voters approved Initiative Measure 728 in November 2000 which redirected Lottery revenues from the Washington State General Fund to the Student Achievement Fund and the Education Construction Fund. A stipulation by Initiative Measure 728 specifies that after July 1, 2004 all Lottery revenue for education will be directed to the Education Construction Fund which are used for the maintenance and repair of higher education institutions and to build, remodel and renovate K-12 schools.