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A Review of the South Carolina Education Lottery
October 2014

REPORT (PDF)    SUMMARY (PDF)

Sections 59-150-30(B) and 2-15-63(A) of the S.C. Code of Laws require the Legislative Audit Council to conduct a management audit of the South Carolina Education Lottery (SCEL) every three years. We reviewed the controls at the lottery, as well as followed up on recommendations in the previous audit reports.

Our audit objectives were to:

• Determine the adequacy of the lottery’s internal controls over its operations.
• Determine the status of recommendations made in the previous LAC lottery audits.

The S.C. Education Lottery was established in 2001 and began selling tickets in January 2002.  The mission of the lottery is “to provide, with integrity, entertainment options to adults to support education in South Carolina.”  The SCEL does not receive state appropriations and is funded through the sale of lottery game tickets. For FY 13-14, the lottery had revenues of $1,268,126,205 and transferred $330,703,203 to the Education Lottery Account.