AN ACT to eliminate the authority of the lottery commission to expend lottery revenues on advertising expenses and to redirect monies intended for advertising toward foster care programs with the department of health and human services.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  G.S. 18C‑114 reads as rewritten:

§ 18C‑114.  Powers and duties of the Commission.

(a)        The Commission shall have the following powers and duties:

…

(2)        To prescribe the nature of lottery advertising to be conducted by lottery game retailers, which shall comply with the following:

a.         All advertising shall include resources for responsible gaming information.

b.         No advertising may intentionally target specific groups or economic classes.

c.         No advertising may be misleading, deceptive, or present any lottery game as a means of relieving any person's financial or personal difficulties.

d.         No advertising may have the primary purpose of inducing persons to participate in the Lottery.

….

SECTION 1.(b)  G.S. 18C‑130 reads as rewritten:

§ 18C‑130.  Types of lottery games; lottery games and lottery advertising; certain disclosures and information to be provided.

(a)        The Commission shall determine the types of lottery games that may be used in the Lottery, which may include instant lottery games, online lottery games, lottery games played on computer terminals or other devices, and other lottery games traditional to a lottery or that have been conducted by any other state government‑operated lottery.

(b)        In lottery games using tickets, each ticket in a particular game shall have printed on it a unique number distinguishing it from every other ticket in that lottery game and an abbreviated form of the game‑play rules, including resources for responsible gaming information. In lottery games using tickets, each ticket may have printed on it a depiction of one or more cartoon characters, whose primary appeal is not to minors. In lottery games using tickets with preprinted winners, the overall estimated odds of winning prizes shall be printed on each ticket. No name or photograph of a current or former elected official shall appear on the tickets of any lottery game.

(c)        In lottery games using electronic computer terminals or other devices to play the lottery games, no coins, currency, or redemption ticket shall be dispensed to players from those electronic computer terminals or devices.

(d)       No lottery games shall be based on the outcome of a particular sporting event or on the results of a series of sporting events. Sports wagers shall be governed by Article 9 of this Chapter.

(e)        Lottery The Commission shall ensure that advertising shall be by lottery game retailers is tastefully designed and presented in a manner to minimize the appeal of lottery games to minors. The use of cartoon characters or of false, misleading, or deceptive information in lottery advertising is prohibited. All advertising promoting the sale of lottery tickets or shares for a particular game shall include the actual or estimated overall odds of winning the game. Nothing in this subsection shall be deemed to authorize the Commission to expend public funds on lottery advertising.

(f)        The Commission shall make available a detailed tabulation of the estimated number of prizes of each particular prize denomination that are expected to be awarded in each lottery game or the estimated odds of winning these prizes at the time that lottery game is offered for sale to the public.

(g)        The Commission shall, in consultation with the Department of Health and Human Services, develop and provide information to the public about gambling addiction and treatment.

SECTION 1.(c)  G.S. 18C‑163 reads as rewritten:

§ 18C‑163.  Expenses of the Lottery.

(a)        Expenses of the Lottery may include any of the following:

(1)        The costs incurred in operating and administering the Commission, including initial start‑up costs.

(2)        The costs resulting from any contracts entered into for the purchase or lease of goods or services required by the Commission.

(3)        A transfer of one thirty‑one million dollars ($1,000,000) ($31,000,000) annually to the Department of Health and Human Services for to be used as follows:

a.         One million dollars ($1,000,000) for gambling addiction education and treatment programs.

b.         Thirty million dollars ($30,000,000) for foster care programs.

(4)        The costs of supplies, materials, tickets, independent studies and audits, data transmission, advertising, promotion, incentives, public relations, communications, bonding for lottery game retailers, printing, and distribution of tickets and shares.

(5)        The costs of reimbursing other governmental entities for services provided to the Commission.

(6)        The costs for any other goods and services needed to accomplish the purposes of this Chapter.

(b)        Expenses of the lottery shall also include all of the following:

(1)        A a transfer of two million one hundred thousand dollars ($2,100,000) annually to the Department of Public Safety, Alcohol Law Enforcement Division, for gambling enforcement activities.

(2)        Advertising costs.

SECTION 2.  This act becomes effective July 1, 2025.