North Carolina has one of the United States' youngest lottery systems, having been enacted in 2005.
The North Carolina State Lottery Act created the 9-member Lottery commission who was charged with overseeing all aspects of the education lottery.
100% of North Carolina Lottery net proceeds go directly to benefit the state's education, with the current figure sitting at more than $9 billion since its inception in 2007.
By law, lottery funds go to pay for school construction, need-based college financial aid, transportation, salaries for non-instructional support staff, and pre-kindergarten for at-risk four-year-olds.
The State Lottery Act outlines how each and every dollar produced by the lottery will be spent.
The revenue distributions are as follows: 51% was paid out in prizes, 38% was transferred into the education fund, 7% was paid to the retailers who sold lottery tickets, and 4% went to general lottery expenses.
The controversial
lottery
A lottery is a form of gambling that involves the drawing of numbers at random for a prize. Some governments outlaw lotteries, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of ...
proposal was approved on August 31, 2005, after then-
Lieutenant Governor
A lieutenant governor, lieutenant-governor, or vice governor is a high officer of state, whose precise role and rank vary by jurisdiction. Often a lieutenant governor is the deputy, or lieutenant, to or ranked under a governor — a "second-in-comm ...
Bev Perdue
Beverly Eaves Perdue (born Beverly Marlene Moore; January 14, 1947) is an American businesswoman, politician, and member of the Democratic Party who served as the 73rd governor of North Carolina from 2009 to 2013. She was the first female gov ...
cast a tie-breaking vote in the
North Carolina Senate
The North Carolina Senate is the upper chamber of the North Carolina General Assembly, which along with the North Carolina House of Representatives—the lower chamber—comprises the state legislature of North Carolina. The term of office for e ...
.
History
North Carolina
North Carolina () is a state in the Southeastern region of the United States. The state is the 28th largest and 9th-most populous of the United States. It is bordered by Virginia to the north, the Atlantic Ocean to the east, Georgia and So ...
, traditionally associated with the
Bible Belt
The Bible Belt is a region of the Southern United States in which socially conservative Protestant Christianity plays a strong role in society and politics, and church attendance across the denominations is generally higher than the nation's a ...
, was the only state on the
East Coast
East Coast may refer to:
Entertainment
* East Coast hip hop, a subgenre of hip hop
* East Coast (ASAP Ferg song), "East Coast" (ASAP Ferg song), 2017
* East Coast (Saves the Day song), "East Coast" (Saves the Day song), 2004
* East Coast FM, a ra ...
without a lottery. The issue divided lawmakers and the public alike. At the time, the opposition of nearly every
Republican
Republican can refer to:
Political ideology
* An advocate of a republic, a type of government that is not a monarchy or dictatorship, and is usually associated with the rule of law.
** Republicanism, the ideology in support of republics or agains ...
and a minority of
Democratic lawmakers (consisting of
progressives)
made the passage of a lottery unlikely. These groups denounced the lottery as a
regressive tax
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. "Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high ...
on the poor.
However, on August 30, 2005, two lottery opponents (Harry Brown, R-
Jacksonville
Jacksonville is a city located on the Atlantic coast of northeast Florida, the most populous city proper in the state and is the List of United States cities by area, largest city by area in the contiguous United States as of 2020. It is the co ...
and John Garwood, R-
North Wilkesboro
North Wilkesboro is a town in Wilkes County, North Carolina, United States, approximately 80 miles north of Charlotte. The population was 4,131 at the 2020 US Census. North Wilkesboro is the birthplace and original home of Lowe's Home Improvemen ...
) had excused absences. With this known, a special vote was called, which was 24-24. Lt. Gov. Perdue cast the tiebreaking vote, signaling the way for Gov. Easley to sign it into law. The vote would have been defeated had the absent senators
paired their votes.
"Education" Controversy
In February 2009, to reduce a budget shortfall, Gov. Perdue withheld approximately $88 million to fill shortfalls in the North Carolina budget. Perdue emptied the $50 million lottery reserve, also withholding $38 million allocated for a school construction budget in direct conflict with the mandate of the NCEL. This controversial move by the Governor prompted North Carolina lawmakers on March 10, 2009 to propose a name change to the NCEL, to remove "Education" from its name.
Proceeds and payouts
*Seven percent is paid to retailers as commission.
*fifty one percent is paid as winnings to players.
*four percent is cost-of-sales.
*The remaining 38% goes to education proceeds, broken down as follows:
**Before any proceeds are paid, 5% of the proceeds goes to the Education Lottery Reserve Fund to be used when lottery proceeds fall short. This fund may not exceed
$100 million.
**Fifty percent of the remainder goes towards the
reduction of class sizes.
**Forty percent of the remainder is used for school construction.
***Sixty-five percent of the above is distributed based on school enrollment.
***The remaining 35% is distributed to counties with effective property tax rates above North Carolina's average based on school enrollment.
**Ten percent of the remainder is distributed for college scholarships, to be used with the federal
Pell Grant
A Pell Grant is a subsidy the U.S. federal government provides for students who need it to pay for college. Federal Pell Grants are limited to students with financial need, who have not earned their first bachelor's degree, or who are enrolled i ...
.
Originally, North Carolina's
scratch tickets had an overall payout of 52%, 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-up games now have higher-percentage payouts.
The Lottery has continued to generate controversy among North Carolina constituents upset with teacher layoffs who believed the Lottery should have made up the difference.
Television
Live Lottery drawings are broadcast on these TV stations:
*
WRAL-TV
WRAL-TV (channel 5) is a television station licensed to Raleigh, North Carolina, United States, serving as the NBC affiliate for the Research Triangle area. It is the flagship station of the locally based Capitol Broadcasting Company, which h ...
in
Raleigh
Raleigh (; ) is the capital city of the state of North Carolina and the seat of Wake County in the United States. It is the second-most populous city in North Carolina, after Charlotte. Raleigh is the tenth-most populous city in the Southeas ...
*
WITN-TV
WITN-TV (channel 7) is a television station licensed to Washington, North Carolina, United States, serving Eastern North Carolina as an affiliate of NBC and MyNetworkTV. Owned by Gray Television, the station has primary studio facilities on E ...
in
eastern North Carolina
Eastern North Carolina (sometimes abbreviated as ENC) is the region encompassing the eastern tier of North Carolina. It is known geographically as the state's Coastal Plain region. Primary subregions of Eastern North Carolina include the Sandhil ...
*
WAXN-TV
WAXN-TV (channel 64) is an independent television station licensed to Kannapolis, North Carolina, United States, serving the Charlotte area. It is owned by Cox Media Group alongside dual ABC/Telemundo affiliate WSOC-TV (channel 9). Both stations ...
in
Charlotte
Charlotte ( ) is the most populous city in the U.S. state of North Carolina. Located in the Piedmont region, it is the county seat of Mecklenburg County. The population was 874,579 at the 2020 census, making Charlotte the 16th-most populo ...
*
WILM-LD
WILM-LD (channel 10) is a low-power independent television station in Wilmington, North Carolina, United States, owned by the Capitol Broadcasting Company. The station's studios are located on Wrightsville Avenue (US 76) in Wilmington, and its ...
in
Wilmington
*
WLOS
WLOS (channel 13) is a television station licensed to Asheville, North Carolina, United States, broadcasting ABC and MyNetworkTV programming to Western North Carolina and Upstate South Carolina. It is owned by Sinclair Broadcast Group, which pr ...
in
Asheville
Asheville ( ) is a city in, and the county seat of, Buncombe County, North Carolina. Located at the confluence of the French Broad and Swannanoa rivers, it is the largest city in Western North Carolina, and the state's 11th-most populous ci ...
(2011-)
*
WGHP
WGHP (channel 8) is a television station licensed to High Point, North Carolina, United States, serving the Piedmont Triad region as an affiliate of the Fox network. The station is owned by Nexstar Media Group, and maintains studios on Francis ...
in Greensboro/Winston-Salem/High Point
There are no designated stations for the
Florence/Myrtle Beach or
Hampton Roads
Hampton Roads is the name of both a body of water in the United States that serves as a wide channel for the James River, James, Nansemond River, Nansemond and Elizabeth River (Virginia), Elizabeth rivers between Old Point Comfort and Sewell's ...
markets, both covering portions of North Carolina.
*
WYCW
WYCW (channel 62) is a television station licensed to Asheville, North Carolina, United States, serving as the CW outlet for Western North Carolina and Upstate South Carolina. It is owned and operated by network majority owner Nexstar Media Gro ...
in
Asheville
Asheville ( ) is a city in, and the county seat of, Buncombe County, North Carolina. Located at the confluence of the French Broad and Swannanoa rivers, it is the largest city in Western North Carolina, and the state's 11th-most populous ci ...
showed the lottery results from 2006-2011. The drawings were moved to
WLOS
WLOS (channel 13) is a television station licensed to Asheville, North Carolina, United States, broadcasting ABC and MyNetworkTV programming to Western North Carolina and Upstate South Carolina. It is owned by Sinclair Broadcast Group, which pr ...
on March 28, 2011.
Current draw games
In-house draw games
Carolina Pick 3
This game began on October 6, 2006 as a game that was only drawn nightly prior to march 30, 2008. Carolina Pick 3 is drawn twice daily (prior to February 27, 2011, it was drawn only once Sundays). Carolina Pick 3 draws three balls, each numbered 0 through 9. Players can wager in 50 cent increments that the number drawn is in exact order, or in any order. Another option is "50/50", which is a $1.00 bet consisting of an "Exact" wager and an "Any" wager. The other options are "Combo", which is a $1.50, $3 or a $6 wager (depending on the number of straight combinations), and pair play which allows players to pick 1 number in either the first two or the last two colouns (the two numbers selected in their specific location must match the two numbers drawn exactly to win a prize). The game pays up to $500. It’s statistically harder to match the winning numbers in the exact order in the drawing so the prizes that the players can win on a “Straight” bet are bigger.
Carolina Pick 4
Began on April 17, 2009, Carolina Pick 4 also is twice daily (prior to February 27, 2011, it was drawn once nightly). Otherwise, it is similar to Carolina Pick 3, except it draws four digits. A "Combo" wager is a $4, $6, $12, or $24 bet depending on the combinations. A $1 “Straight” bet wins $5,000 if the numbers selected match exactly. The play type options for this game are the same as the pick 3 game. Players face the odds of 1 in 10,000 of winning the top prize on the straight play.
=Fireball
=
On September 18, 2022, the North Carolina education lottery has added fireball to its pick 3 and pick 4 games, replacing sum it up and 1 off. After each day and night pick 3 and pick 4 drawing the lottery draws one number from a separate machine that has 10 balls numbered 0-9 which is separate to each game. Players can use the fireball number to replace any one of the numbers drawn for pick 3 or pick 4 and create a fireball prize winning combination to win a fireball prize which is separate from the base game prize. Players can win multiple fireball prizes on the same ticket depending on the unique numbers selected. If a player wants to add fireball to their play, he/she must mark the spot on their ticket that says “add fireball”. Doing so doubles the cost of the play and can be added to any pick 3 or pick 4 play type.
Carolina Cash 5
Began on October 27, 2006, Carolina Cash 5 is drawn nightly. Prior to may 14, 2016 the game Drew 5 numbers from 1-39 with starting jackpots at $50,000 Cash. On may 14, 2016 the matrix changed to 5/41 and the starting jackpot stayed at $50,000. The prizes for matching 3 and 4 numbers were parimutuel. As of Sunday, November 4, 2018, it draws 5 numbers from 1 to 43 & the prizes for matching 3 & 4 numbers became fixed prizes. Cash Jackpots begin at $100,000 and grow until there is a 5-of-5 winner sometimes reaching $1 million. Games cost $1 each ($2 with an add on feature ez match (which improves top prize odds to 1 in 84,000 & overall odds to 1 in 4.71) $2 with double play, and $3 with ez match and double play). Overall odds of winning: 1 in 10.51; odds of winning the top prize: 1 in 962,598. Players can also purchase up to 28 consecutive drawings on each purchase. Players must match at least 2 out of the five numbers drawn in any order with the numbers on their cash five ticket for both the base game and the double play feature to win a prize.
The payout for matching 2 of 5 numbers is $1; 3 of 5, $5; 4 of 5, $250, and the jackpot is
parimutuel
Parimutuel betting or pool betting is a betting system in which all bets of a particular type are placed together in a pool; taxes and the "house-take" or "vigorish" are deducted, and payoff odds are calculated by sharing the pool among all winnin ...
.
On April 25, 2021, the NCEL introduced a Double Play add-on feature. This feature costs an additional $1 per play, and the Top prize in the Double Play feature is $50,000 (the top prize has a $250,000 liability limit for each drawing for each set of numbers) and is won by matching all five numbers in any order. The Double Play drawings take place before the Cash 5 drawings. The prizes for matching 2, 3, & 4 numbers on this feature are bigger than those in the main game with matching 2 numbers awarding $3, matching 3 numbers awarding $12 & matching 4 numbers awarding $500.
[https://www.lotterypost.com/news/336666]
Multi-jurisdictional games
Lucky for Life
Lucky for Life is a lottery drawing game available in 23 states and the District Of Columbia. Players select 5 numbers from 1-48 and a sixth number from 1-18. Prizes range from $3 to $1,000 per day, every day, for the winner's life. The player who wins the top prize or the second prize ($25,000 a year for life) may also choose an available cash option for such annuity. On Nov 27, 2021, a player accidentally purchased 2 identical sets of numbers and won 2 $25,000/year for life prizes.
Mega Millions
Mega Millions is offered in 44 states, the
District of Columbia
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
, and the U.S. Virgin Islands. Mega Millions began as part of the NCEL on January 31, 2010 as part of the cross-sell expansion with MUSL.
Mega Millions is drawn Tuesday and Friday nights at 11:00 p.m. Eastern Time in Atlanta Georgia.
Powerball
Powerball began in 1992; NCEL joined on May 28, 2006. As of October 7, 2015, Players select five numbers 1 through 69, and the red Powerball (1-26). Jackpots begin at $40 million annuity. As of August 23, 2021, Drawings are Monday, Wednesday and Saturday.
Former Games
Monopoly Millionaires Club
North Carolina was among 23 participating states to offer this multi state game which started on October 19, 2014. Players picked 5 #s from 1-52 for the white balls and 1 bonus number from 1-28. The top prize was $5,750,000 which was paid out in a financial annuity or the top prize winner may choose the lump sum of $4,000,000 for such annuity. The game was discontinued after the DEC 26, 2014 drawing due to poor sales. The game was discontinued in 2016 in its entirety.
All or Nothing
This game began on September 7, 2014. The format of this game was the same as the
Texas Lottery
The Texas Lottery is the government-operated lottery available throughout Texas. It is operated by the Texas Lottery Commission, headquartered in downtown Austin, Texas.
History
House Bill 54 was introduced for a state lottery on July 11, ...
version of the game, similarly players got 2 sets of numbers on each panel for $2. The top prize on this game was a fixed top prize at $250,000 (with a $5 million liability limit). Other than the top prize for the game, there were 4 prizes: $500, $50, $10 & $2. In May 2016, the lottery announced that the game would end with the Thursday, June 30, 2016 drawing. The lottery has ended the game because of its performance after citing that it would join the multi state
Lucky For Life
Lucky for Life (LFL) is a lottery drawing game, which, as of June 28, 2021, is available in 22 states and the District of Columbia. Lucky for Life, which began in 2009 in Connecticut as ''Lucky-4-Life'', became a New England–wide game three ye ...
game earlier in the year.
See also
*
Gambling in North Carolina Legal forms of gambling in the U.S. state of North Carolina include the North Carolina Education Lottery, three Indian casinos, charitable bingo and raffles, and low-stakes "beach bingo". North Carolina has long resisted expansion of gambling, owi ...
*
Lotteries in the United States
In the United States, lotteries are run by 48 jurisdictions: 45 states plus the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Lotteries are subject to the laws of and operated independently by each jurisdiction, and there is n ...
References
Further sources
Legislation Information Network. 31 August 2005.">"Lottery Opponenets Outmaneuvered". Legislation Information Network. 31 August 2005. Accessed 4 June 2006.
The Daily News (Jacksonville, NC). 7 May 2006.">Mouskourie, Diane. "The Wrong Number?". The Daily News (Jacksonville, NC). 7 May 2006. Accessed 4 June 2006.
External links
North Carolina Education Lottery homepageNorth Carolina Education Lottery official Twitter page
{{U.S. lotteries
State lotteries of the United States
Education Lottery
Economy of North Carolina
2005 establishments in North Carolina