Lottery says outside audit finds 'exceptional' performance

Posted March 19, 2013

— Faced with legislation that would slash administrative and advertising spending, the North Carolina Education Lottery on Tuesday released the results of an outside audit that finds the state-run game is well run.

State law requires the performance audit every two years, and Wisconsin-based Delehanty Consulting LLC found that the lottery is one of only three nationwide to increase its profits every year since 2007.

“The NCEL’s ongoing performance has been exceptional,” the audit states.

Auditors said limits on advertising reduces the lottery’s ability to generate money for schools, noting that $1 invested in lottery advertising in North Carolina generates $31.70 in profits for education.

“Given the NCEL’s return on advertising investment, the advertising limit of one-percent of sales is likely reducing the profits available for education,” auditors wrote. “Although falling sales would motivate most companies to increase advertising, the NCEL would have to decrease advertising if sales begin to fall. This could exacerbate the decrease in profits available for education.”

House Bill 339 would cut advertising to 0.5 percent of revenue and administrative costs from 8 percent to 4 percent.


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  • hiddentreasurescruecds Mar 20, 2013

    I think we all know by now that evidence, logic, and common sense have no place within the GOP.

  • Plenty Coups Mar 20, 2013

    miseem-Apologies for my coment yesterday. You had me fooled with your "sarcasm".

  • Plenty Coups Mar 20, 2013

    AAh, evidence. Is there anyway the GOP can suppress this?

  • miseem Mar 19, 2013

    Right. Starve the beast! I'm sure the GA will come up with funds to replace declining lottery revenue. Unless the "beast" they are trying to starve is public education.

  • JMOP Mar 19, 2013

    Kill the golden goose. Way to go!!