Virginia's record-breaking profits may signal a huge shift in the lottery industry

By Kate Northrop

The numbers are in — the Virginia Lottery broke sales records this fiscal year, and perhaps even set a new precedent, after it reported that its online sales outpaced in-store retail sales for the first time in any state lottery's history.

This year, the Virginia Lottery set a new precedent by reporting that its online sales surpassed in-store retail sales for the first time in U.S. lottery history.

According to Virginia Lottery public records, ticket sales reached $5.521 billion in 2024, smashing the previous fiscal year's $4.612 billion by an astounding 20%.

Of Fiscal Year 2024's total sales, $3.07 billion came from online games and $2.45 billion came from retail sales, Virginia Lottery spokesperson John Hagerty told Lottery Post. This is the first time online ticket sales have surpassed in-person retail sales in a U.S. state lottery.

Although the shift may seem unsettling to retailers, the general sales trend shows that retail sales continue to grow alongside the rise in online sales. In Fiscal Year 2024, retailers across the state received $141.5 million in compensation, an increase from $137.3 million in Fiscal Year 2023.

"We started selling online on July 1, 2020, and it was an immediate hit with players. In the fiscal year immediately before that, FY20, our retail sales were $2.15 billion," Hagerty pointed out. "So, sales at retail have grown since we began selling online."

Simultaneously, the trend may mark a significant shift in the lottery industry and could influence other states to enhance their online lottery offerings in addition to traditional retail outlets.

Players also saw a hefty increase in prize payouts, with payouts up nearly $1 billion this year at $4.246 billion from $3.416 billion in 2023. After retailer compensation and operating costs, the Virginia Lottery netted $934.1 million in profits, up almost 8% from last year's $867.4 million and the highest in the Lottery's 36-year history.

Lottery profits are allocated solely to K-12 public education in the state of Virginia, with the Lottery contributing "more than $934 million to Virginia's public schools, more than $2.5 million per day" last year, the Lottery stated after updating its sales records online.

"Over the course of my administration, we have been able to achieve record funding for K-12 education, allowing for increased opportunities in the classroom," Governor Glenn Youngkin said in a press release. "I am so thrilled these record profits will help provide the necessary support and resources for Virginia's students. Approximately 10 percent of Virginia's K-12 education budget comes from Virginia Lottery profits that assist in funding public schools."