NC Education Lottery Hits $6.6B, but Schools Get Less

The North Carolina Education Lottery just hit a major milestone, posting a record $6.6 billion in ticket sales for fiscal year 2025. That’s a big jump from the $5.4 billion sold the year before, according to its annual financial audit.

But here’s the twist: public schools didn’t see more money. In fact, funding sent to education slightly dipped. A review by the Office of the State Auditor shows schools received about $1.05 billion, down from $1.07 billion in 2024, even as sales soared.

The lottery says education funding still topped $1 billion for the third year in a row, calling it a win. However, state auditors point out a troubling trend:

• 23% of lottery revenue went to schools in 2023

• 20% in 2024

• Just 16% in 2025

That steady decline raised red flags.

State Auditor Dave Boliek said the math doesn’t add up for many residents. When ticket sales rise, he said, people naturally expect education funding to rise too. At first glance, he noted, the numbers spark more questions than answers.

The lottery pushed back, explaining that higher payouts from digital instant games and fewer blockbuster multistate jackpots hurt net profits. Without massive jackpots driving sales, multistate games brought in $174 million less, cutting net profit by about $70 million. According to the lottery, much of the year’s performance came down to plain luck.

The audit itself, conducted by Cherry Bekaert, confirmed the lottery’s financial records were accurate. Still, Boliek has launched a deeper review of lottery operations — the first major examination of its kind since 2008.

For now, the record-breaking sales headline comes with an uncomfortable question: why more tickets didn’t mean more money for schools.