West Virginia Lottery projects roughly $1.2 billion in annual gross sales, officials tell Senate finance committee

Acting West Virginia Lottery Director David Bradley told the Senate Finance Committee on Jan. 20 that the lottery’s gross receipts are about $1.2 billion a year and that the lottery returns more than $500 million annually to state programs. "Our lottery produces grosses $1,200,000,000 a year, and it returns over $500,000,000 to the state," Bradley said during the budget presentation.

The lottery presentation outlined FY2027 estimates, startup cash reserves and statutory distributions. Bradley said startup cash for the lottery fund is about $40 million — with nearly $20 million reserved for the Bureau of Senior Services and $7 million for the Department of Education — and that the agency projects revenues just over $1.2 billion in fiscal 2027. He also described the Racetrack Modernization Fund, debt service tied to lottery‑pledged bonds and that racing and casino patrons often come from neighboring states.

Senators pressed the Lottery team on the difference between actual receipts and conservative projections. Paul Barnett, the Lottery’s chief accountant, said projection methodology intentionally excludes certain one‑time items, such as administrative surplus and interest, which inflate actuals but are not included in baseline forecasts. "We always try to be conservative with our projections," Barnett said, noting last year’s administrative surplus was about $12 million.

Committee members also asked about the lottery’s iLottery and iGaming products. Bradley said iLottery was added into FY2027 projections and officials expect growth from mobile products, though he cautioned that some digital products currently yield lower net profit margins than traditional games. Michelle Painter, the lottery’s chief financial officer, said a combination of app updates and loyalty programs have contributed to recent growth and that so far there is not clear evidence of cannibalization of traditional sales.

On the topic of surplus funds, Revenue Secretary Eric Nelson said prior‑year excess lottery surpluses are typically applied to one‑time items and used as part of the budget process to meet various needs. "There are surpluses right now, and as part of the budget ... some of those will be prior year lottery and excess lottery surpluses that will fund various one‑time items," Nelson said. Senators noted the state regularly relies on lottery surpluses to help balance the budget and asked for a fuller discussion with budget office staff later in the session.

The committee did not take any appropriation votes on the Lottery presentation; the session moved on after questions were answered.