Sports Betting Slows While Scratch-Off Sales Remain Steady This Summer

As we reach the middle of July, Virginia sports betting gradually enters the slower pace of the summer months.

Recently, Virginians had the freedom to place bets on a wide range of sporting events including the NBA playoffs, NHL playoffs, and college baseball. However, the options have now significantly shrunk, leaving only Major League Baseball, UFC events, and sporadic PGA tour events on the betting calendar. Apologies to LIV Golf fans, as betting on their events is forbidden in the Old Dominion.

Residents and tourists can always count on the Virginia Lottery for their betting entertainment, regardless of the time of year.

Virginia Lottery scratch-off tickets

Since 1987, the Virginia Lottery has remained a consistent presence in convenience stores across the state. Initially, their offerings were limited to only:

• Scratch-off tickets
• Powerball drawings
• Mega Millions drawings

In the present day, skill games similar to slot machines have become a common feature in most convenience stores.

During the initial phase of the COVID-19 pandemic, the Virginia Lottery experienced a decline in sales of scratch-off and drawing tickets. This decline occurred as a result of social distancing measures implemented by then-Gov. Ralph Northam in March and April 2020, which restricted the number of customers allowed inside stores. Additionally, individuals were hesitant to venture out of their homes due to the absence of a vaccine during that period.

Prior to the onset of the pandemic, the General Assembly approved a law permitting the online purchase of Virginia Lottery tickets. As 2020 drew to a close, there was a substantial increase in both virtual and in-person sales.

The introduction of ticket vending machines was a significant development for lottery players, revolutionizing the process of purchasing tickets and providing a more streamlined experience for both bettors and retail shop owners. John Hagerty, spokesperson for the Virginia Lottery, acknowledged the positive impact of this enhancement.

Self-service machines are favored by many consumers due to the level of control they offer. Additionally, retailers find them advantageous, particularly during periods of exceptionally high jackpots for Power Ball and Mega Millions, as these machines help alleviate the workload on clerks who are busy assisting customers with ticket purchases.

Reports from the past three years indicate that sales of Virginia Lottery scratch-off tickets have significantly surpassed sales of drawing-style games.

Year	Drawing Tickets	Scratch-Offs
2019-20	$1.14 Million	$5.45 Million
2020-21	$1.39 Million	$6.69 Million
2021-22	$1.13 Million	$6.18 Million

How does Virginia allocate money from the lottery?

According to regulations, the entirety of the Virginia Lottery’s earnings is allocated to state education initiatives. Although Mega Millions and Powerball receive significant media coverage, scratch-off tickets serve as the primary income generator for the Virginia Lottery, as highlighted by Hagerty.

There is a common misunderstanding among people that lottery money is solely allocated to local schools and serves as the primary source of education funding. However, lottery profits actually contribute approximately 10% of the overall state education funding annually, meaning it supports various expenses within the education budget.

According to Hagerty, these revenue trends typically align with ongoing current events.

High gas prices often result in decreased lottery sales at convenience stores, indicating that economic conditions do indeed influence consumer behavior.

Hagerty reported that in 2021, a total of $10 million from unclaimed winning tickets was contributed to Virginia’s Literacy Fund, aiming to assist school construction projects.

Sports betting & casino contributions

Licensed Virginia sportsbooks have amassed a staggering $4.98 billion in wagers following its legalization in January 2021. From this, operators have collectively generated $422.4 million in revenue, while the state has benefited by earning $29.8 million in tax revenue.

In the near future, the state will also benefit financially from the legalization of casino gambling. A report by the General Assembly’s Joint Legislative Audit and Review Commission in 2019 estimated that if five proposed casinos in Virginia were approved, they would contribute $260 million in annual gaming tax revenue, while generating a total gaming revenue of $970 million.

According to Hagerty, the Virginia Lottery is eagerly looking forward to the possibilities that lie ahead with the introduction of new casinos. One notable example is the Hard Rock Casino Bristol, which recently opened its temporary location in July, thereby becoming the state’s inaugural operational casino.

Addressing problem gambling remains a priority

In addition to collaborating with Virginia Lottery’s Play Responsibly (VLPR) program, Hagerty also assists in its efforts. The VLPR has formed partnerships with the Virginia Council on Problem Gambling and the National Council on Problem Gambling, aiming to provide comprehensive education to gamblers regarding gambling-related concerns. Hagerty expressed his involvement, stating:

We place great importance on the concept of ‘Play Responsibly.’ While some individuals may believe that gambling addiction is a myth and solely a matter of personal responsibility, we acknowledge that it is indeed a genuine issue. To address this concern, we collaborate with organizations that provide hotline assistance and educational resources.

In addition, Virginia advocates for a Voluntary Exclusion initiative that effectively prohibits individuals who enroll in the program from participating in account-based lottery games, casino games, sports betting, horse race betting, and charitable gaming activities.