Nebraska Lottery sales decreased by more than $36 million, a roughly 16% drop, in the fiscal year ending July 2025, according to an audit released Monday by State Auditor Mike Foley.
According to Nebraska Public Media, the decline has resulted in nearly $10 million less funding for various state programs that rely on lottery revenue, including environmental conservation, education grants and assistance for problem gamblers.
Key Takeaways:
- Nebraska Lottery sales dropped over $36 million, a 16% decrease.
- Increased casino gambling is diverting funds from traditional lottery programs.
- Funding for environment, education and problem gambling aid faces new challenges.
Casino Growth Deepens Impact on Nebraska Lottery Sales
The audit attributes the sales shortfall primarily to increased availability and popularity of casino gambling and other gaming options in Nebraska, which have grown rapidly recently.
Those alternative gambling venues appear to be drawing consumer spending away from traditional lottery tickets, challenging the lottery’s ability to provide mandated financial support for funded programs.
Programs affected by the reduction in lottery proceeds include the Nebraska Environmental Trust, Nebraska State Fair, the Compulsive Gamblers Assistance Fund and the Nebraska Opportunity Grant Fund for higher education assistance.
The audit warns these initiatives may face additional funding challenges if the expansion of casino gambling and other gaming continues.
Funding Strains Highlight Lottery’s Uncertain Future
This latest decline is more pronounced than in previous years. A 2022 state audit reported only a 1.5% decrease in lottery sales, partly due to changes in consumer behavior during the COVID-19 pandemic, according to KETV. Since then, the Nebraska casino industry has experienced strong growth with new venues opening and expanded offerings.
The Nebraska Lottery was established under a 2004 constitutional amendment, which directs lottery proceeds toward several state programs. The current funding drop raises concerns about the sustainability of those programs that depend on lottery revenues.
Foley said the long-term impact of new types of gaming on lottery revenue appeared “ominous” and added that the overall trend in ticket sales would be the key factor, with time showing whether the decline continues.
