Many traditional gaming outlets were devastated by the COVID-19 pandemic, however, a new online lottery platform proved to be a saving grace for Virginia Lottery sales.
The official lottery of the commonwealth has revised its sales projections for the upcoming years, primarily as a result of the significant influence exerted by online lottery sales in Virginia.
Kevin Hall, Executive Director of the Virginia Lottery, provided an update to the Virginia House of Delegates Appropriations Committee earlier this week.
During his conversation with legislators, Hall had to highlight the achievements of his agency. It appears that the Virginia Lottery’s ability to swiftly transition to online sales, even amid a global pandemic, has garnered recognition within the industry.
Hall said, “Virginia has been identified by the lottery industry as having a robust and highly successful launch, which brings me great pleasure to share with you.”
Online lottery boosts Virginia Lottery sales
In Virginia, the online lottery offers a variety of gaming opportunities. These include exciting new instant-win digital games, along with the widely recognized multi-state jackpots like Mega Millions, Powerball, and Cash4Life.
In March, Virginia Governor Ralph Northam approved a legislation allowing online lotto. However, with the realization of the impending impact of COVID-19 on daily activities, including retail operations, the Virginia Lottery swiftly took action. Consequently, the lotto commenced its online sales on July 1, several months ahead of the originally planned schedule, as confirmed by Hall.
The diligent efforts of the majority of our staff who worked remotely during the pandemic have yielded positive results.
Hall stated that their primary focus was on quickly introducing iLottery sales to the market. As a result, the expedited launch has generated unforeseen additional revenue for the fiscal year 2021.
After a mere four weeks of sales, the VA Lottery had already achieved its initial sales projections for the entire first quarter. Moreover, within just one full quarter of sales (July-September), Hall announced that the lottery had surpassed its projections for the entire year.
Online is helping, not hurting lottery retail sales
In June 30th, the VA Lottery wrapped up its latest fiscal year, encompassing half of 2020. Throughout this 12-month period, the lottery achieved an impressive milestone, surpassing $2 billion in total sales and generating revenue exceeding $595 million.
Upon the introduction of the online platform, concerns arose among officials regarding the potential impact of online sales on the retail sales of the Virginia Lottery. This is because the lottery is currently accessible through a network of 5,300 retail outlets including gas stations, convenience stores, grocery stores, truck stops, marinas, and other establishments across Virginia.
Prior to the launch of iLotto, those shops had already started preparing for a world after the virus.
Hall stated that by the end of April, the majority of retailers had made adjustments to their stores. These adjustments included the installation of signage, the provision of sanitizer, the implementation of mask requirements, and the placement of plexiglass shields at the counters. These measures were taken to ensure the safety of both customers and staff. It seems that consumers were able to adapt swiftly to the public health guidelines. They became more at ease with navigating retail spaces and adhering to safety restrictions.
Additionally, lottery authorities needed to evaluate whether online sales would negatively impact their brick-and-mortar operations. Interestingly, it had a contrary outcome.
As Hall said:
The inclusion of iLottery not only enhances the lottery brand but also reinforces the traditional aspects of the business. This integration makes the product more appealing to consumers, particularly those who prioritize convenience. Additionally, we are actively developing cross-promotions and other strategies to seamlessly connect the traditional retail and digital aspects of our business.
The future of the Virginia online lottery
For instance, the introduction of online options did not hinder the growth of Virginia Lottery retail sales. In fact, there was an impressive 8% increase in sales for scratch-off tickets compared to the previous year. Additionally, the daily in-state draw games such as Pick 3, Pick 4, and Cash 5 experienced a substantial 22% surge in sales.
Officials have a clear anticipation for the continuation of this trend.
Hall shared the fiscal year 2021 projections with the appropriations committee.
| Fiscal Year 2020 Sales | 2021 Projected Sales | |
|---|---|---|
| Scratch-off games | $1.17 billion | $1.24 billion (+6%) |
| Daily draw games | $691.5 million | $770.3 million (+11%) |
| Jackpot games | $204.9 million | $213.3 million (+4%) |
| Other (iLotto, Print ‘n Play, keno, etc.) | $83.5 million | $678.1 million (+712%) |
It is evident that the previous insignificant category labeled as “Other” has the potential to significantly boost sales in the near future.
The new keno game introduced by the VA Lottery has already gained momentum and is anticipated to bring in another successful year along with the widely popular and extended Virginia New Year’s Millionaire Raffle.
Including the online options, authorities anticipate a substantial surge in “Other” sales, projecting a 712% increase from $83.5 million in 2020 to $678.1 million in the upcoming year.
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