Patrick Gannon has an informative column out on the N.C. Education Lottery. The key point:
The recent performance audit by Delehanty Consulting LLC compared the lottery with those in five nearby states — Tennessee, South Carolina, Georgia, Kentucky and Virginia. Of the states, North Carolina, in its ninth year, operates the newest lottery.
North Carolina ranks last among the states in lottery profits per capita, as well as advertising and marketing investment per capita and sales per lottery retailer, the audit showed.
And most importantly to those who buy tickets, it also ranked last — at 60.62 percent — in prize payouts as a percentage of sales during the 2013 fiscal year. The highest was Georgia — at 64.66 percent.
The study’s author, Herb Delehanty, noted that North Carolina could increase its prizes and not harm its profitability because more prizes generally equal more sales. “There may be a point at which increases in prize payouts may not result in overall increases in profitability; however, the (lottery) has not reached that point,” he wrote in the report.
And:
The audit also found that the lottery’s profit per capita in the 2013 fiscal year was $48.59, lowest among the six states. Operating profits per capita equals dollars raised for the beneficiary — education in North Carolina’s case — divided by the state population. Georgia’s was the highest at $92.80, but that state has a lucrative keno game, with drawings every four minutes. The other four states had profits per capita ranging from $51 to $64.
So yeah, expect more silly lottery ads — if the General Assembly allows it.
