Nebraska’s lottery sales took a big hit last year, dropping more than $36 million—a 16.3% decline—according to a recent state audit. State Auditor Mike Foley released the report Monday, noting that growing casino options and other forms of gambling could be drawing players away from traditional lottery tickets.
The decline isn’t just a numbers problem—it’s affecting funding for key state programs. Four major initiatives that rely on lottery revenue saw nearly $10 million less in funding. That includes the Nebraska Environmental Trust, the Nebraska State Fair, the Compulsive Gamblers Assistance Fund, and various education funds, like the Nebraska Opportunity Grant Fund.
Here’s a quick snapshot of the drops:
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Nebraska Environmental Trust: $24.4M → $20.1M (−$4.3M)
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Nebraska State Fair: $5.48M → $4.52M (−$963K)
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Compulsive Gamblers Assistance Fund: $1.05M → $952K (−$96K)
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Education Funds: $24.4M → $20.1M (−$4.3M)
The total funding decline hit $9.63 million in just one year.
The 2023 legislative updates had already directed millions in lottery funds toward 10 educational programs, including the Excellence in Teaching Cash Fund, Community College Gap Assistance Program, and Nebraska Opportunity Grant Fund. These moves were in line with the original 1991 Lottery Act’s goal: using lottery proceeds to benefit education and community initiatives.
Foley warned that continued declines in ticket sales could threaten that purpose. “The longer-term impact of new forms of gaming on future Lottery proceeds seems ominous,” he said. “What matters most is the sustained trend in lottery sales, and only time will tell if the decline persists.”
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