NC Education Lottery Financial Statement Audit Released

The North Carolina Office of the State Auditor (OSA) has released the statutorily required financial statement auditof the North Carolina Education Lottery.

The audit, performed under contract with accounting firm Cherry Bekaert, found the financial statements present fairly the financial position of Education Lottery as of June 30, 2025 and 2024.

In reviewing the financial statements, however, OSA found that while the Education Lottery's revenues have increased, there was a decrease in the amount of net revenues transferred for education purposes from FY 2024 to FY 2025.

According to the financial statements, in FY 2024 the Education Lottery reported total annual revenue - acquired through lottery ticket sales - of $5.4 billion, with $1.07 billion of that being net revenues for North Carolina's Education Lottery Fund. In FY 2025, total annual revenue increased once again, this time, to $6.6 billion, but net revenues decreased to $1.05 billion designated for public schools. The overall percentage contributed to the public schools, for example, has gone from 23% in FY 2023, to 20% FY 2024, to 16% in FY 2025.

State Auditor Dave Boliek spoke with Education Lottery leadership to discuss the financial statement audit prior to public release. OSA also launched a performance audit of the Education Lottery and has been engaged in that exercise for the last three months. This is the first performance audit of the Education Lottery conducted by the State Auditor since 2008 and since a narrowly tailored investigative report issued by OSA in 2012.

"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. At first glance, these numbers raise a lot of questions. Over the last three years, total revenues have increased by a total of over $3 billion, while contributions to public education have been flat," said State Auditor Boliek. "These numbers led to the initiation of a performance audit designed to take a deep dive into all aspects of the Education Lottery's finances and operations. 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."

The full financial statement audit can be viewed here. OSA gave Education Lottery management the opportunity to provide additional commentary on the financial statement audit, which can be read here.