Summary

North Carolina is one of 44 states that operates a lottery. In its 10 years of existence, the NC Lottery has returned over $4.6 billion to the State for education purposes. The Program Evaluation Division found that annual revenues have steadily grown since the Lottery’s inception and performance is slightly above average compared with other states. However, it is essential that the NC Lottery continues to examine its operations by reviewing revenue-generating strategies and efforts to reduce costs, thereby providing the maximum benefit to the State. To that end, the Lottery could expand its retailer network, reduce the compensation paid to retailers, authorize Video Lottery Terminals and offer iLottery games online, and enhance data collection and analysis methods to more effectively measure the influence of advertising on sales. The General Assembly should require the NC Lottery to take steps to examine these options and report on their feasibility and effectiveness as applicable.

Final Report

Executive Summary

Recommendations

Presentation

Presentation to Joint Legislative Oversight Committee on the
North Carolina State Lottery—February 15, 2018