RALEIGH, NC – The North Carolina Office of the State Auditor has released its required financial statement audit of the North Carolina Education Lottery, confirming the lottery’s financial records are accurate while raising concerns about how much money ultimately reaches public schools.
The audit, conducted under contract with the accounting firm Cherry Bekaert, found that the Education Lottery’s financial statements fairly present its financial position for the fiscal years ending June 30, 2025, and June 30, 2024.
However, auditors noted a troubling trend: although lottery ticket sales continue to climb, the amount of net revenue transferred to support public education has declined.
According to the audit, the Education Lottery reported $5.4 billion in total ticket sales during fiscal year 2024, generating $1.07 billion in net revenues for the state’s Education Lottery Fund. In fiscal year 2025, total revenue rose sharply to $6.6 billion, but net revenues designated for public schools fell to $1.05 billion.
As a result, the percentage of lottery revenue directed to education has steadily dropped—from 23 percent in fiscal year 2023, to 20 percent in 2024, and to 16 percent in 2025.
State Auditor Dave Boliek said the numbers raise questions for taxpayers and education advocates.
“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,” Boliek said. “Over the last three years, total revenues have increased by more than $3 billion, while contributions to public education have remained flat.”
Boliek said those concerns prompted the Office of the State Auditor to launch a performance audit of the Education Lottery, which has been underway for the past three months. This marks the first full performance audit of the Education Lottery since 2008, following a narrowly focused investigative report issued in 2012.
The performance audit is expected to take a deeper look at the lottery’s finances and operations to better understand how revenue is generated, managed, and distributed.
“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,” Boliek said.
Findings from the performance audit are expected to be released at a later date.
