The Virginia Lottery in the United States reports that for the first time in the history of American lotteries, its online sales have surpassed in-store retail sales this fiscal year. In fiscal year 2024, the total lottery sales in Virginia amounted to $5.521 billion, a 20% increase from the previous year's $4.612 billion.
Online Sales Surpass Traditional Retail
In total sales, online games contributed $3.07 billion, while in-store retail contributed $2.45 billion. This is the first time that the state lottery's online sales have exceeded retail sales, indicating an increasing preference for digital platforms among players. Despite this shift, retail sales continue to grow. In fiscal year 2024, compensation for retailers increased from $137.3 million the previous year to $141.5 million, indicating that physical stores are still benefiting.
Changes in the Lottery Industry Landscape
The Virginia Lottery began offering online sales on July 1, 2020, a move that was quickly embraced by players. Before the launch of online lottery sales, the retail amount in fiscal year 2020 was $2.15 billion. Current data shows retail growth and rapid popularization of online sales channels. This trend may encourage other states to expand their online lottery products as well.
Increase in Prizes, Record Profits
The increase in sales also led to an increase in prize payouts, reaching $4.246 billion, nearly $1 billion more than the previous year's $3.416 billion. After deducting retailer compensation and operating costs, the Virginia Lottery reported a net profit of $934.1 million, an 8% increase from last year's $867.4 million. This is the highest profit in the 36-year history of the lottery.
Supporting Education in Virginia
The profits generated by the Virginia Lottery are used to fund K-12 public education in the state. Over the past year, the lottery has donated more than $934 million to Virginia's public schools, averaging over $2.5 million per day. Governor Glenn Youngkin noted that these record profits will continue to support educational opportunities, with about 10% of the Virginia K-12 education budget coming from these lottery profits.
