Audit Finds Record NC Lottery Sales but Smaller Share for Schools

Overview

• FY2025 financial results show $6.586 billion in sales with $1.05 billion sent to education, down from $1.07 billion the prior year.
• The share directed to schools fell to 16% in FY2025 after 20% in FY2024 and 23% in FY2023, despite revenues rising by more than $3 billion over three years.
• Lottery management attributes lower net returns to higher prize payouts and fewer giant Powerball and Mega Millions jackpots, noting a $174 million sales decline in those games that cut net profit by $70 million.
• Digital instant games generated about $2.6 billion in their first full year, grew to nearly 40% of sales, and pay roughly 87% versus about 50% for draw games, reducing overall margins.
• The review comes years after lawmakers converted a 35% education allocation from a mandate to a guideline, and the State Auditor has launched the first performance audit of the lottery since 2008.