The lottery has had a long and winding history in North Carolina. While today the North Carolina Education Lottery provides funding for education programs across the state, it took many years and failed attempts before a lottery system was finally established.
North Carolina actually held the nation’s first government-run lottery way back in 1749. This lottery was used to raise funds to establish Queen’s College, which later became the University of North Carolina at Charlotte. The lottery was Controversial Support it to fund infrastructure projects like roads and bridges. Opponents viewed it as an immoral form of gambling. This first lottery lasted until 1762.
For most of the 19th and 20th centuries, lotteries were banned in North Carolina. There were a few efforts to re-establish a lottery, but these attempts did not gain enough support.
It wasn’t until 2005 that the North Carolina State Lottery as we know it today was approved through legislation and a state-wide referendum. The lottery launched in 2006, making North Carolina the 42nd state to legalize the lottery.
So in total, it took over 250 years from that first colonial lottery until the modern North Carolina lottery was established! Let’s take a closer look at the history and key dates.
The Colonial Lottery: 1749-1762
As mentioned, North Carolina held the nation’s first government-run lottery starting in 1749. At the time, the colony of North Carolina was still quite young, having been established in the 1710s.
The lottery was championed by North Carolina Governor Gabriel Johnston. Johnston hoped to use lottery profits to support Queen’s College, a new school modeled after prestigious universities like Oxford and Cambridge.
In order to hold a lottery, approval was needed from the North Carolina colonial assembly and the British monarchy. King George II granted approval in 1749, and North Carolina held its first lottery later that year.
Tickets for the first lottery cost £2 and offered the chance to win prizes up to £500. There were 4,000 tickets available. The lottery proved quite popular, raising over £9,000. This was enough to purchase land and supplies to establish Queen’s College.
More lotteries followed in subsequent years, continuing to raise money for the school. The colonial lotteries funded scholarships, built infrastructure like dorms, and paid faculty salaries.
Opinions on the lottery were mixed in colonial times. Supporters saw it as a creative way to fund important causes like education in the cash-strapped colony. However, some voiced moral objections, viewing gambling as sinful. Others worried about fraud in lottery operations.
By 1754, Queen’s College opened its doors in Mecklenburg County. It would later relocate to Chapel Hill in 1789 and evolve into the University of North Carolina.
The colonial lotteries lasted until 1762, when King George III refused to renew approval of lotteries for the colonies. This marked the end of North Carolina’s first foray into lotteries.
Banning Lotteries: 1762-2005
After the initial colonial lotteries ended in 1762, North Carolina did not operate any government-run lotteries for nearly 150 years. There appears to be several reasons why lotteries faded away:
– Shift in public attitudes – Lotteries came to be viewed more negatively as an immoral form of gambling. The tides turned against legal lotteries in the late 18th and early 19th century across the United States.
– Fraud concerns – There were likely concerns about potential corruption and fraud within lottery operations, without sufficient oversight.
– Reliance on other funding sources – Lotteries were useful in colonial times to fund new infrastructure projects. But as North Carolina developed in the 1800s, other sources of revenue became available for projects.
For many years, North Carolina government focused funds on essential services and kept taxes relatively low. Lotteries did not gain traction as politically acceptable. The state constitution banned lotteries starting in 1835.
There were a few attempts to reestablish lotteries in North Carolina in the late 19th and early 20th centuries, but these efforts never took off:
– In 1891, a lottery bill passed the General Assembly but was vetoed by the governor.
– In 1913, lottery proponents tried unsuccessfully to amend the state constitution to allow a lottery.
For nearly 150 years, North Carolina did not operate any state-run lottery. Residents who wished to play the lottery had to cross state lines and purchase tickets in neighboring states like Virginia or South Carolina where lotteries were legal.
Meanwhile, public and political acceptance of lotteries slowly increased again across the nation in the latter 1900s. State lotteries began popping up across the U.S. following New Hampshire establishing the first modern state lottery in 1964.
Failed Referendums: 1990-1998
As lotteries grew in popularity nationwide in the 1980s and 90s, North Carolina made several attempts to reestablish its own lottery:
– In 1989, the North Carolina House passed a bill to create a lottery, but the Senate rejected the bill before it could go to a public vote.
– In 1990, a lottery referendum made it on the ballot, but failed to gain support from voters.
– In 1992 and 1995, lottery bills passed in the House but did not pass the Senate.
– In 1996, both the House and Senate approved a bill to allow a public referendum on a state lottery. The referendum made it on the ballot in 1998 but was rejected by voters.
So in the 1990s, despite some initial momentum in the legislature, efforts to bring back the lottery continued to fall short each time it was put before voters. Powerful political voices in opposition held up the process. Republican House Speaker Harold Brubaker and Democratic Governor Jim Hunt were both against the lottery.
But by the early 2000s, support was growing throughout the state. Facing budget deficits, many viewed establishing a lottery as a way to generate revenue without raising taxes. Other supporters wanted North Carolinians to be able to play lotteries in-state, rather than traveling across state lines.
Passage of the North Carolina Lottery: 2005
In 2005, the modern North Carolina lottery finally became reality. With Democrats controlling the state legislature and the governor’s office, a new lottery act passed both the House and Senate. Governor Mike Easley signed the legislation to establish a state-run lottery.
The North Carolina lottery legislation required an amendment to the state constitution to allow lotteries. The lottery amendment was placed on the ballot as a referendum for voters in November 2005.
This time around, with momentum in the legislature and public support growing, voters approved the constitutional amendment to legalize a state lottery. The referendum passed with over 56% in favor.
Key factors that helped the 2005 lottery bill succeed after so many prior failures included:
– Strong legislative support – With Democrats controlling state politics, lottery proponents were able to push past opposition voices that had previously blocked bills.
– Desire to keep money in-state – Many disliked seeing North Carolinians spending millions each year on out-of-state lotteries. A state lottery would keep more lottery revenue within North Carolina.
– Use education funds – The lottery was sold to voters as a way to raise funds for education programs without raising taxes. This helped broaden appeal.
So after nearly 250 years, North Carolina finally joined the ranks of states operating modern lotteries in 2005. With voter approval, the North Carolina State Lottery was officially created.
Launch of the NC Lottery: 2006
Following passage of the 2005 law, North Carolina moved quickly to set up a state-run lottery system during 2006.
The North Carolina Lottery Commission was appointed to establish games and rules for the new NC Lottery. Experienced lottery executive Tom Shaheen was brought in as the NC Lottery’s first executive director.
Key early decisions in starting the lottery included:
– Games offered – Powerball and Mega Millions were slated to be the marquee games, joining on shortly after launch. Scratch-offs, Pick 3, Pick 4, Cash 5, and Carolina Pick 5 were also introduced as the core suite of NC Lottery games.
– Revenue distribution – Lottery profits were allocated to support educational programs, including school construction and needs-based college scholarships.
-Vendor contracts – Major contracts were awarded to gaming vendors like Intralot for technology infrastructure and Scientific Games for scratch-offs.
-Retailer recruitment – The lottery needed to sign up retailers across North Carolina to sell tickets. Thousands of gas stations, convenience stores, and grocers were recruited as sales outlets.
After a speedy start-up process, the shiny new North Carolina Lottery system was ready for launch in 2006. NC Lottery ticket sales officially kicked off on March 30, 2006.
The lottery instantly proved popular. Within the first week, North Carolina lottery sales exceeded $10 million. The lottery met its first-year sales target of $425 million within just three months. North Carolinians were clearly enthusiastic about finally having an in-state lottery option.
The North Carolina Lottery Today
Since its launch in 2006, the North Carolina Lottery has grown steadily and provided billions in funding for education initiatives across the state. Some key facts about today’s NC Lottery:
– Sales in 2022 topped $3.8 billion, an increase of nearly 8% over 2021. This ranked North Carolina 6th in total U.S. lottery sales.
– The lottery has contributed over $9 billion total to education programs in North Carolina since inception.
– School construction receives 40% of lottery profits, with most of the remaining funds supporting college scholarships and grants based on financial need.
– Over 5,000 retailers offer lottery games statewide. Players can find Powerball, MegaMillions, scratch-offs, and draw games at convenience stores, supermarkets, and other outlets.
– Powerball and MegaMillions jackpots continue to produce intense sales frenzies when prizes roll over $500 million and beyond. Stores can sell hundreds of thousands of tickets per day during periods of jackpot mania.
– Four North Carolina residents have won half or more of massive Powerball jackpots since 2015, collecting prizes from $150 million up to $344.6 million.
– The NC Lottery now offers online play and purchasing via mobile apps, providing added convenience for players. However, federal law prohibits online lottery ticket sales across state lines.
So while the lottery got off to a late start historically in North Carolina, it is now a firmly established institution providing entertainment and contributing billions to important state causes. After 250 years in the making, the NC Lottery seems here to stay.
Timeline of Key Dates
1749 – North Carolina holds the nation’s first government-run lottery to fund Queen’s College
1762 – The colonial lotteries end after King George III declines to renew approval
1835 – North Carolina includes a ban on lotteries in new state constitution
1989 – Lottery bill passes NC House but rejected by Senate
1990 – Lottery referendum on ballot but rejected by voters
1992 – Lottery bill passes House but fails in Senate
1995 – Another lottery bill passes House but stalls in Senate
1996 – Legislature approves holding a public referendum on a lottery
1998 – Voters reject the lottery referendum
2005 – Legislature passes new lottery bill, voters approve referendum
2006 – The modern North Carolina Lottery launches ticket sales
Conclusion
Despite early lotteries centuries ago, North Carolina resisted bringing back a state-run lottery for most of its history. The tide finally shifted in the early 2000s, as budget concerns and desire to keep lottery play in-state overcame long-standing opposition. With 2005 legislation and public approval, the NC Lottery system launched in 2006 and now provides billions in annual education funding. After 250 years, North Carolina joined the lottery club late in the game, but the lottery has certainly made up for lost time.