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Virginia Lottery reports $690 million year-to-date profit, pushes retail and iLottery growth
Summary
The Virginia Lottery told its board April 9 that year-to-date profits through March are about $690 million, roughly $43 million ahead of projections, while iLottery and retailer expansion remain key growth strategies ahead of a potentially softer fourth quarter.
The Virginia Lottery reported Thursday that its year-to-date profit through March is about $690,000,000, roughly $43,000,000 higher than forecast, and said continued growth in its iLottery product and new retailer pilots underpin the performance.
The Lottery's executive director, Khaleed Jones, told the board the agency is “having a very, very, very good year,” noting iLottery sales have doubled into the billions — “over $2,400,000,000 this year in the first 3 quarters,” according to the board packet — and that online sales remain a major growth engine even as the iLottery enters its fifth and sixth years.
Board finance presenter Ms. Corden provided details on product performance and payouts: scratcher sales were up 8.8% year to date, daily games have lagged and remain below their expected payout rates, and overall payout to players is just under 78% through the reporting period. Retailer compensation was reported at just under 6% and operating expenses at roughly 4% — below the 10% statutory administrative cap cited in the meeting materials.
Why it matters: Virginia Lottery profits are transferred to K–12 public education and other statutory recipients; strong year-to-date results affect the size of those transfers and the agency's FY2026 forecast.
Key details and context
- Sales and profits: Jones said the lottery is about $43 million ahead of projected profits for the fiscal year through March. The agency recorded what staff described as its highest single sales week in the agency's history in early April, and reported strong year-to-date performance overall.
- Product mix: iLottery continues to grow rapidly, while national jackpot games have been weaker nationally, which reduces the traffic and deposit behavior those jackpots typically drive. Jones noted national jackpot games account for roughly 4% of overall sales but have outsized effects on foot traffic and one-time depositor activity.
- Retailer strategy: The Lottery said it has about 5,300 traditional retailers and that roughly three-quarters of retailers and sales come from convenience stores. The agency is piloting new retailer formats, chiefly bars and restaurants, using QR-code table delivery in pilots with Glory Days and a prospective Applebee’s pilot to capture dwell-time spending and broaden retail footprints.
- Risk and outlook: Staff warned of possible softness in the fourth quarter tied to macroeconomic conditions and low consumer confidence but said high interest rates could support jackpot growth. Jones flagged that while the agency plans for responsible expansion, it expects normal market variability in the coming quarter.
- Internal operations: The board heard that sales growth is credited to the iLottery team and retail sales staff; Jones singled out Scott Kenyon and Tom Sawyer for work on iLottery and retailer engagement.
Evidence: Board materials and staff remarks at the April 9, 2025 Virginia Lottery board meeting provided the figures cited above.
Ending
Board members asked staff to add additional statutory comparators to future expense-rate slides. The Lottery’s next regular board meeting is scheduled for July 30 in Bristol, where staff said they will update forecasts and any fourth-quarter developments.
