North Carolina Education Lottery Article Index for
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North Carolina Education Lottery
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HISTORY

North Carolina , a state normally associated with the Bible Belt , was the only state on the East coast without some type of state-run lottery. The issue divided lawmakers and the public alike. At the time, the opposition of nearly every Republican and a small minority of Democratic lawmakers made the passage of a lottery unlikely. However, on 30 August , two anti-lottery opponents (Harry Brown R- Jacksonville and John Garwood R- North Wilkesboro ) had excused absences. With this known, a special vote was called and the vote tied 24-24. Then Lieutenant Governor Beverly Perdue cast the tiebreaking vote, signaling the way for Governor Easley to sign it into law. The vote could have been defeated had the absent senators Paired their votes.


PROCEEDS AND PAYOUTS

  • Seven percent is paid to retailers as commission.

  • Fifty percent is paid as winnings to lottery players. (See note below on scratch tickets.)

  • Eight percent is cost-of-sales.

  • The remaining 35% goes to education proceeds, broken down as follows:

  • ---Before any proceeds are paid, 5% of the proceeds (1.75% of the total) goes to the Education Lottery Reserve Fund to be used when lottery proceeds fall short of the goal. This fund may not exceed US $ 100 million.

  • ---Fifty percent of the remainder of the education proceeds (16.625% of the total) goes towards the Reduction Of Class Sizes .

  • ---Forty percent of the remainder of the education proceeds (13.3% of the total) is used for school construction.

  • --Sixty-five percent of this total (8.645% of the total) is distributed based on school enrollment.

  • --The remianing 35% (4.655% of the total) is distributed to counties with effective county property tax rates above the state average based on school enrollment.

  • ---Ten percent of the remainder of the education proceeds (3.325% of the total) are distributed for college scholarships, to be used with the federal Pell Grant .


Originally, North Carolina's Scratch tickets had an overall payout of 52 percent, the lowest among scratch tickets then available through US lotteries. While its $1 instant tickets continue to pay out at roughly this level, its newer $2 and higher games now have higher payouts.


AVAILABLE GAMES


As a MUSL member, North Carolina is eligible to offer its other games as well, including the secondary jackpot game Hot Lotto . However, as of June 2007, no new online games are planned.


REFERENCES



SEE ALSO

List Of Lotteries

Powerball


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