A performance audit released by the North Carolina Office of the State Auditor details a history of increased education funding by the North Carolina Education Lottery, driven by business practices that make it a leader in its industry.

The audit reviewed the percentage of lottery sales transferred to the state over time and found that, while that percentage has changed, the actual amount of money delivered to the state has grown substantially.

The audit states, “While the percentage transferred to the Education Fund has declined, total transfer dollars have reached historic highs due to overall growth in lottery sales.”

For each of the last four years, the lottery has generated more than $1 billion for the state, despite growing competition in gaming. That success comes from a business strategy that introduced new games to grow the lottery audience, meet customer demands, and maximize revenue for education.

Digital Instant games are played online where customers make a growing number of entertainment purchases. The games also enable the lottery to remain a strong and reliable source of funding for education. The audit found that innovations like Digital Instants helped support funding to the state when more traditional lottery games experienced a downturn in sales.

The audit states, “Despite the decline in sales for traditional game types, the amount transferred to the Education Fund remained consistent, buoyed by the introduction of digital instant games.”

The North Carolina Education Lottery celebrated its 20th anniversary this year by raising a record amount of money for education, an estimated $1.14 billion. Since its inception in 2006, the lottery has raised more than $13 billion for the state.

Thousands of students in North Carolina started this school year in new state-of-the-art buildings with the help of lottery-funded grants. More than 100 school construction projects have benefited from those grants over the lottery’s history.

In addition to school construction, the lottery supports each North Carolina county with funding for:
• Non-instructional school worker salaries
• Bus transportation, like bus drivers’ salaries, fuel, and maintenance
• A free, NC Pre-K education for at-risk four-year-olds
• College scholarships to students attending a state university or community college

Transparency remains key to the lottery’s mission. It undergoes both annual financial audits and bi-annual performance audits managed by independent audit firms that are competitively procured.

Information on how money raised by the lottery benefits your county can be found on the lottery’s website.