Where does the money go?

Q. Where does the money go when I buy a ticket?

A: When you buy a lottery ticket, most of the money spent goes to create the prizes. The chance to win games with lots of big, exciting prizes is why people say they enjoy playing and so it’s the first place money goes. Last year, about 75 cents of every dollar in lottery sales went to prizes paid to our players. After ensuring a good prize experience for players, the lottery returns money to help fund education programs. Last year, 16 cents of every dollar represented the profits of the lottery business and that’s the money that goes to education. That was more than $1.08 billion for education last year. After prizes and education, the lottery pays the businesses that sell lottery tickets 7 cents for every dollar they sell, and the remaining money pays for administrative costs including the gaming systems – the lottery equipment supporting sales in 7,100 stores, as well as marketing, and salaries of lottery employees.

Q: How much money does the lottery provide for education programs and where does it go?

A: For a third year in a row, the lottery provided more than $1 billion to education programs in North Carolina last year. The largest portion of those funds provide money to build new schools and repair or renovate older ones. For example, in November, ten counties found out they would receive nearly $400 million in grants for school construction projects. There are now 62 counties in North Carolina that have received similar lottery-funded grants. Lottery funds also:

• Provide seats in a free Pre-K program for four-year-olds.
• Pay for college scholarships based on financial need and for children of wartime veterans.
• Support public schools with funds for school staff and transportation.

Q: What was the result of lottery’s FY25 financial audit?

A: A recent annual financial audit of the North Carolina Education Lottery returned an “unmodified opinion” – the highest possible rating. The N.C. Education Lottery has received the highest possible rating in each of the 20 financial audits conducted on its operations.

Q: Where can I find out more?

A: The lottery prides itself on operating in a transparent and responsible way. Information on how the lottery benefits education in your county can be found here.