Where's the money? Lottery revenues up $3B over 3 years, percentage to schools declines

By Alan Wooten I The Center Square

Courtesy file photo

(The Center Square) – Answers are being sought for why overall percentage of contributions from the North Carolina Education Lottery to public schools has slid from 23% to 16% in the last three years while total revenues have increased by more than $3 billion.

The annual statutorily required audit, delegated to Cherry Bekaert by the state auditor, were found “free from material misstatement.” First-term Republican state Auditor Dave Boliek said a deeper dive will be taken due to the contrasting numbers.

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“North Carolinians have a reasonable expectation that if the Education Lottery’s ticket sales go up, money going toward our public schools would increase as well,” Boliek said. “At first glance, these numbers raise a lot of questions. Over the last three years, total revenues have increased by a total of over $3 billion, while contributions to public education have been flat. These numbers led to the initiation of a performance audit designed to take a deep dive into all aspects of the Education Lottery’s finances and operations. North Carolinians deserve answers to some tough questions so that we all have a better understanding of the return public schools are getting from the Education Lottery.”

Fiscal year 2023 contributions were 23%, fiscal year 2024 was 20% and fiscal year 2025 ending June 30 was 16%.

The Lottery Commission did not address specifically the drop in public school contribution percentage. It did provide a response explaining the causes for revenue increases and decreases, notably pointing out players in the multi-state jackpot games of Powerball and Mega Millions.

Total annual revenue for the past year was $6.6 billion with only $1.05 billion designated for public schools. In 2024, the $5.4 billion in total annual revenue led to $1.07 billion going to schools.

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Chuck Thompson is a reporter and columnist for The Shelby Independent.