A new audit says the North Carolina Education Lottery should review how it distributes money as revenue grows, but a smaller share goes to public schools.
A report from the Office of the State Auditor found that the growth of instant digital gambling is driving the trend. Players are spending more on mobile, slot machine-style games, but they are also receiving larger payouts.
State law sets a goal for the Education Lottery to transfer 38% of its revenue to public schools. According to the audit, the lottery transferred 16% during the last fiscal year.
State Auditor Dave Boliek said the findings raise questions about the lottery's distribution formula.
“The audit raises questions about whether we're going to focus on a percentage outcome, a dollar outcome, or a balance of the two, which is really important in terms of transparency and accountability to the public,” Boliek said.
In a response included with the audit, Education Lottery CEO Mark Michalko said he would meet with state lawmakers to discuss possible legislative changes.