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Virginia Lottery posts record sales; iLottery growth, casino taxes and responsible‑gaming controls draw committee interest
Summary
The Virginia Lottery reported record FY25 sales, driven by strong iLottery growth and a historic jackpot; the agency also outlined transfers to education, casino AGR and tax splits, and steps on responsible gaming and child protection for lottery products.
Caleb Jones, President and CEO of the Virginia Lottery, briefed the Senate Finance and Appropriations Committee on FY25 performance, iLottery growth, casino and sports‑betting activity and the agency’s responsible‑gaming work.
Jones said fiscal‑year 2025 set a sales record of about $5.7 billion, with iLottery sales reaching nearly $3.4 billion — a year‑over‑year increase of roughly 16.5%. He noted that national jackpot dynamics (Mega Millions, Powerball) can produce volatility in retail scratch and ticket sales, and that FY25 included Virginia’s largest jackpot in state history, a $348 million Mega Millions prize paid in June.
The nut graf: Higher iLottery sales and operating efficiency helped the agency deliver a strong transfer to K–12 public education; the Lottery noted continued attention to responsible‑gaming safeguards for online play and said it is exploring additional consumer protections.
Jones said FY25 lottery profits and residuals totaled about $943.8 million delivered to the lottery proceeds fund and related state uses, roughly $33 million above the current biennium goal the agency intends to reflect in its revised board goals. He highlighted additional state benefits that arise from lottery administration: tax withholding on large prizes, debt set‑offs for prize winners who owe state debts, and unclaimed prize money that flows to the Literary Fund.
On casinos, Jones reviewed adjusted gaming revenue (AGR) and tax allocations. He said three casinos were operational (Bristol, Portsmouth, Danville), Norfolk expected to come online in 2025 and Petersburg’s licensure was pending. Jones detailed the graduated casino tax structure and how proceeds are allocated to school construction, problem‑gambling treatment, regional commissions and localities.
On sports wagering the agency reported that Virginia is a top‑10 U.S. market; 11 operators were active and market share skewed toward major national operators. Jones noted the statutory limitation on wagering (no betting on Virginia college sports or individual college athletes) and said the agency enforces limits on promotional deductions for operators introduced in 2023.
Committee members asked about problem gambling safeguards and protections for youth. Jones described the voluntary exclusion program (two‑year, five‑year, lifetime options), on‑site compliance staff at casinos, KYC procedures for online play, and ongoing outreach. He said players can set play limits and that the Lottery is exploring additional measures — such as mandatory limit prompts and periodic responsible‑gaming checks for heavy play — to reduce harm.
The Lottery said it will continue to develop responsible‑gaming controls for iLottery while pursuing additional retail distribution channels and operational efficiencies to sustain transfers to education.
