The past year saw a decrease in Virginia Lottery sales due to the pandemic. Nevertheless, the official lottery of the commonwealth managed to make a strong comeback as the fiscal year drew to a close.
The VA Lottery has recently reported total sales exceeding $2 billion and proceeds totaling over $595 million, marking the end of the year.
2020 probably lost the first place on the all-time list due to the emergence of the COVID-19 pandemic in the spring.
Virginia Lottery narrowly misses sales record
Out of the total lottery sales amounting to over $2 billion in 2020, player prizes accounted for $1.318 billion, which corresponds to 61.3%. Moreover, the VA Lottery allocated $120.7 million (5.6%) towards retailer compensation and $116.9 million (5.4%) for operating expenses.
In the Old Dominion State, the VA Lottery’s profit for the year amounted to $595.3 million (27.7%), contributing to educational initiatives.
Since its establishment in 1987, the Virginia Lottery experienced its third most profitable year, with total sales reaching $2.149 billion, ranking second highest in history.
Total sales surpassed $2 billion for the fourth time in five years, marking an impressive achievement.
In 2019, the lottery achieved unprecedented records in sales, revenue, and player prizes.
COVID-19 hinders spring VA Lottery sales
The fiscal year for the Virginia Lottery spanned from July 1, 2019, to June 30, 2020.
As a result of the coronavirus pandemic and the subsequent implementation of social distancing measures in Virginia, lottery sales experienced a decline in March (a 21% decrease compared to March 2019) and April (down 8%). Nevertheless, the closure of numerous casinos and the suspension of sports events led to a remarkable recovery in sales during May and June, surpassing the figures from 2019.
According to Kevin Hall, the Executive Director of the Virginia Lottery,
During the last quarter of the fiscal year, the lottery was the sole entertainment option available in town, quite literally.
Virginia casinos and sportsbooks await
Since its inception, the Virginia Lottery has primarily supported K-12 education in the commonwealth. In 2000, a significant 80% of Virginians voted in favor of the State Lottery Proceeds Fund, which guarantees that all proceeds are exclusively utilized for educational purposes.
Furthermore, as mandated by legislation, any unclaimed prizes from the Virginia Lottery are specifically designated for the Literary Fund. This fund aims to offer low-interest loans to Virginia municipalities, with the purpose of assisting in the funding of public school projects such as construction, renovations, and technology advancements.
In 2020, the Literary Fund received a transfer of $14 million from the lottery, contributing to a total sum of $309.7 million since 1988.
2020 presented numerous obstacles due to the pandemic, but the Virginia Lottery remains optimistic about the coming year. With its recent expansion of online sales options at VaLottery.com, as well as the responsibility of regulating all casinos and sportsbooks within the state, the Virginia Lottery anticipates a significant year ahead.
With the recent legalization, it is anticipated that sportsbook operators will launch their online platforms in early 2021, while casinos are projected to commence operations in 2025.
Hall stated that the lottery remains at the forefront of the evolving gaming landscape in Virginia, demonstrating integrity, reliable business practices, and innovative approaches. Ultimately, these efforts aim to support K-12 education in the state.
Related Articles
