The Virginia Lottery is run by the Virginia Lottery Board, which oversees all aspects of the lottery, including game development, marketing, and prize payouts. The Virginia Lottery was established in 1987 through a voter referendum and began selling tickets in 1988. Since then, the Virginia Lottery has generated over $21 billion for K-12 public education in the state.
Virginia Lottery Board
The Virginia Lottery is overseen by a five-member Virginia Lottery Board appointed by the Governor of Virginia. The Virginia Lottery Board has the authority to adopt regulations governing the establishment and operation of the lottery. Some key responsibilities of the Virginia Lottery Board include:
- Appointing the Director of the Virginia Lottery
- Approving new lottery games and prize structures
- Setting the price for lottery tickets
- Awarding lottery contracts
- Performing internal audits
Current members of the Virginia Lottery Board are:
- Clement Caporicci (Chairman)
- Keith Hare
- Veronica Coleman
- Mackie McLeod
- Robyn Ryland-Easley
The Virginia Lottery Board meets on a monthly basis to review lottery operations and make decisions on regulatory and business matters. The meetings of the Virginia Lottery Board are open to the public.
Virginia Lottery Director
The day-to-day operations of the Virginia Lottery are handled by the Director of the Virginia Lottery. The Director is appointed by the Virginia Lottery Board and acts as the chief executive officer. The Director oversees a staff of over 270 employees working at the Virginia Lottery headquarters in Richmond and five regional offices around the state.
Some key duties of the Virginia Lottery Director include:
- Implementing the vision and policies set by the Virginia Lottery Board
- Managing lottery game development and portfolio planning
- Overseeing lottery sales, marketing, and promotions
- Ensuring the integrity and security of lottery operations
- Overseeing relationships with retailers and vendors
The current Director of the Virginia Lottery is Kelly Gee. She was appointed to the position in 2018 after serving as the Deputy Executive Director since 2012.
Lottery Sales and Proceeds
The Virginia Lottery generates revenue through the sale of draw games, scratcher tickets, and other lottery games at over 5,200 retailer locations statewide. In the fiscal year 2022, the Virginia Lottery had $3.4 billion in total sales. Sales by game type were:
| Game | Sales |
|---|---|
| Scratcher tickets | $1.8 billion |
| Draw games | $1.1 billion |
| Daily games | $419 million |
After prize payouts and other operating expenses, the Virginia Lottery generates profits of approximately $650 million per year. By law, all profits from the Virginia Lottery are directed to K-12 public education in the state. In FY 2022, the lottery contributed $765 million for Virginia public schools. This was approximately 8% of state funding for public education.
Since its inception, the Virginia Lottery has contributed over $21 billion to K-12 education, making it one of the most profitable lotteries in the country on a per capita basis.
Lottery Profits for Education
Lottery profits are distributed to school divisions across Virginia using an allocation formula. First, $236.7 million of profits are divided evenly among the 132 school divisions as a base amount. Any additional profits above $236.7 million are divided based on school enrollment, with larger divisions receiving a greater share.
The Virginia Lottery profits can be used by school divisions for any education purpose. Common uses include:
- Teacher salaries
- Instructional materials
- Classroom technology
- School construction and renovation
- Support staff
Having a dedicated source of lottery funding is an important component of education budgets for many Virginia school divisions. While it does not replace other state and local funding, the lottery provides flexible support that divisions can direct based on their specific needs each year.
Lottery Games
The Virginia Lottery offers a diverse portfolio of lottery games to generate proceeds for education. These include online draw games, daily games, and instant scratcher tickets. Some key Virginia Lottery games are highlighted below:
Powerball
Powerball is a multi-state online lotto game operated by the Multi-State Lottery Association. Players choose 5 numbers from 1-69 and one Powerball number from 1-26. Tickets can be purchased for $2 per play. Drawings are held every Wednesday and Saturday. Jackpots start at $40 million and roll over if there is no grand prize winner. Powerball has created several record jackpots over $1 billion in size.
Mega Millions
Mega Millions is another interstate lotto game offered in Virginia. Players pick 5 numbers from 1-70 and one Mega Ball number from 1-25. Tickets cost $2. Drawings are held Tuesdays and Fridays. Mega Millions also frequently has jackpots reaching $500 million or more.
Pick 3, Pick 4
Pick 3 and Pick 4 are Virginia’s longstanding daily number games. Pick 3 players try to match a 3-digit number drawn twice daily. Pick 4 involves matching a 4-digit number. Tickets can be 50 cents to $5, with payouts up to $5,000 based on the play type and amount wagered.
Cash 5
Cash 5 is an exclusive Virginia draw game with a top prize of $100,000. Players choose 5 numbers from 1 to 43. Drawings are held daily. Tickets are $1 per play.
Bank a Million
Bank a Million is a $20 Virginia scratcher ticket with a top prize of $1 million paid out as an annuity. The game features a rolling jackpot that keeps growing until a top prize winner is hit. Multiple other prizes between $20 and $1,000 are also available.
Hoo’s Playing Bingo
Hoo’s Playing Bingo is a popular $5 scratcher with a bingo theme. The top prize is $100,000. Players scratch to reveal bingo balls and match to bingo cards for prizes.
| Fiscal Year | Ticket Sales | Prizes | Profit to Education |
|---|---|---|---|
| 2022 | $3.4 billion | $2.0 billion | $765 million |
| 2021 | $2.6 billion | $1.5 billion | $650 million |
| 2020 | $2.1 billion | $1.2 billion | $595 million |
| 2019 | $2.2 billion | $1.3 billion | $650 million |
| 2018 | $2.2 billion | $1.3 billion | $625 million |
Retailer Commissions and Incentives
The Virginia Lottery distributes its games and pays commissions to over 5,200 lottery retailers around the state. Retailers receive a 5% commission on most lottery products plus various incentives. Some key retailer compensation details include:
- 5% commission paid weekly on scratch ticket sales
- 6% commission on Powerball and Mega Millions sales
- 1% cashing bonus when retailers redeem winning tickets up to $600
- 2% retailer incentive when specific sales goals are met
The Virginia Lottery also runs second chance drawings, retailer promotions, and offers sponsorship opportunities to incentivize retailers. There are specialized programs for new retailers and retail chains opening multiple locations. Field reps provide support to help retailers maximize Virginia Lottery sales.
Retailer Requirements
To become a Virginia Lottery retailer, businesses must meet the following requirements:
- Have a fixed business location operating for at least 3 months
- Be open for at least 50 hours per week
- Carry inventory, display space, and ability to secure lottery products
- Be current on all tax obligations
- Maintain a valid Virginia business license
Preferred business types include gas stations, convenience stores, supermarkets, drug stores, liquor stores, and large retail chains. Applications are processed and contracts awarded by the Virginia Lottery’s retail relations team.
Lottery Security and Integrity
Ensuring the fairness, integrity, and security of the lottery is a top priority. The Virginia Lottery utilizes several safeguards and practices to maintain public trust in its games, including:
- Background checks on retailers
- Frequent audits of retailers
- Monitoring for fraud or suspicious winning patterns
- Random drawing checks
- Tests of lottery terminals and balls
- Secure transfer and accounting of all money
The Virginia Lottery also became one of the first lotteries to earn the Level 4 Responsible Gambling Certification from the World Lottery Association in 2019. This recognizes that the Virginia Lottery incorporates responsible play into all facets of its business and has efforts to minimize harm from problem gambling.
Legal Oversight
As a state agency, the Virginia Lottery is subject to oversight from multiple entities to ensure integrity:
- Virginia Lottery Board – Sets regulations and regularly reviews operations
- Virginia Auditor of Public Accounts – Conducts independent audits
- State Internal Audit Division – Provides internal oversight
- Joint Legislative Audit and Review Commission (JLARC) – Assesses effectiveness and efficiency
JLARC reviews the Virginia Lottery every three years and consistently gives positive assessments of the lottery’s financial management and transfers to education.
History and Timeline
Creation of the Virginia Lottery
Prior to 1987, Virginia was one of only a handful of states that did not have a lottery. Supporters pushed for a state lottery as a means to generate revenue for education without raising taxes. After several legislative failures, a statewide referendum to establish a state lottery was placed on the ballot in 1987.
On November 3, 1987, Virginia voters approved the referendum by a wide margin. With 57% voting yes, this amended the Virginia state constitution to allow a state-run lottery. Shortly after, the Virginia General Assembly passed the State Lottery Law in 1988 officially creating the Virginia Lottery.
1990s – Lottery Launch and Growth
The Virginia Lottery sold its first ticket on September 20, 1988. The launch lineup included a $1 scratch ticket called “Beginner’s Luck” and lotto game called “Lotto Virginia” with a starting jackpot of $1 million. During the first full year of operation in 1989, the Virginia Lottery had $434 million in ticket sales.
Several major developments expanded the Virginia Lottery over the next decade:
- In 1992, Powerball began in Virginia as a multi-state game with jackpots starting at $2 million.
- The Big Game, predecessor to Mega Millions, launched in Virginia in 1996.
- Instant scratcher tickets became a major Virginia Lottery product line by the mid-1990s.
- Daily games such as Pick 3 and Cash 5 were introduced.
- By 1999, annual ticket sales surpassed $1 billion.
Recent History 2000-Present
From 2000 to present, the Virginia Lottery has seen continued growth and innovation:
- Launched e-subscriptions allowing players to purchase tickets online in 2012.
- Introduced mobile apps to check numbers and scan tickets by phone in 2014.
- Added computerized instant ticket vending machines to retailers in 2016.
- Expanded game portfolio with new scratchers, daily games, and in-state draw games.
- Set new sales records exceeding $3 billion in 2022.
- Surpassed $21 billion in proceeds to K-12 education since inception.
While adapting to new technology, the Virginia Lottery has maintained a focus on responsible play and transparency. Education also remains the sole beneficiary of profits under the lottery’s founding mission.
Conclusion
The Virginia Lottery has become an important institution providing vital funding for K-12 education across the state. Responsible management and oversight have allowed the lottery to grow steadily over 30+ years and maintain public trust. Operations are directed by the Virginia Lottery Board and leadership appointments made by the Governor. A wide range of lottery games, prudent financial practices, retailer partnerships, and integrity safeguards have contributed to making the Virginia Lottery one of the most efficiently run lotteries in the country. While continuing to evolve and innovate as an enterprise, the Virginia Lottery remains committed to maximizing proceeds to enhance education opportunities for Virginia students.