North Carolina Education Lottery Faces Scrutiny as Funding for Schools Declines Despite Revenue Growth
A new audit reveals a concerning trend: while the North Carolina Education Lottery’s revenue has increased significantly, the amount of funding directed towards public schools has decreased, raising questions about the lottery’s impact on education.
The North Carolina Office of the State Auditor (OSA) recently released its audit of the Education Lottery, prompting a wave of scrutiny over its financial performance and allocation of funds. The audit, the first conducted by the OSA since 2008, highlights a disconnect between rising lottery revenues and stagnant, even declining, contributions to the state’s education system.
In 2024, the Education Lottery reported total revenue of $5.4 billion, with $1.07 billion allocated to the North Carolina Education Lottery Fund. However, by 2025, total revenue climbed to $6.6 billion, while funding for public schools actually decreased to $1.05 billion. This shift represents a significant change in the lottery’s contribution percentage, falling from 23% in 2023 to just 16% in 2025, according to the OSA.
“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,” stated State Auditor Dave Boliek. “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.”
The discrepancy has prompted the initiation of a comprehensive performance audit. This in-depth review will examine all facets of the Education Lottery’s finances and operations, seeking to understand why increased revenue isn’t translating into increased support for public education. According to Boliek, 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.”
The full financial statement audit can be reviewed [here](link to full audit). Education Lottery Management’s commentary on the audit is also available [here](link to management commentary).
