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20 years of NC Education Lottery overshadowed by recent controversy
The NC Education Lottery is turning 20. Over two decades, NCers have spent ~$55 billion—Wake County alone dropping roughly $4B—playing the lotto, and have raked in more than $36B.
While the NCEL plans to celebrate the landmark year, others—namely, the state auditor—are raising red flags regarding how much money the lottery actually delivers to the education system. A recent audit found that while ticket sales have skyrocketed, the percentage contributed to schools has declined.
“When you look at those numbers in black and white—$1.2 billion in additional revenue and $20 million less year over year contributing to public education—it begs serious questions,” emphasizes State Auditor Dave Boliek.
According to the Office of the State Auditor, lottery revenue transferred to the education fund slid from 23% in fiscal year 2023 to 20% in 2024 and 16% in 2025. Initially, state law required 35% of proceeds to go to education, but in 2007, that mandate was rolled back to just a nonbinding guideline.
NCEL Director of Corporate Communications Adam Owens maintains that education remains the organization’s top priority—but, like any other business, the lottery still needs an appealing product: cold hard cash. “Lottery customers are increasingly more drawn to games that will provide more winning experiences and bigger top prizes,” he remarks.
As excitement surrounding massive jackpots wanes, players are gravitating toward digital games, where the lottery spends more on payouts. In short, education funding has slipped as prize money has ballooned—though Owens notes millions of dollars still flow to education each year.
At the same time, the gambling landscape is rapidly evolving. With the legalization and explosive growth of sports betting, would-be gamblers have more options than ever to get lucky. While Owens says it’s difficult to measure the precise impact of sports betting on lottery sales, he acknowledges it as competition nonetheless. “That means the lottery must be innovative and creative in its business decisions,” he maintains, including “expanding the kinds of games we offer and making sure they are designed to hold player interest.”
Despite concerns, the auditor issued an “unmodified opinion”—the highest possible rating—on the lottery’s finances. The NCEL has received this designation every year, and according to Owens, is the only lottery in the country to increase sales every year since its launch.
And so, the celebration continues. The lotto is slated to mark its anniversary with a commemorative scratch-off game, special promotions and a look back on its history. But when the next audit rolls around, all eyes are sure to be on the NCEL—and exactly where the money goes.
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