Virginia Lottery officials report growing sales this fiscal year, especially in jackpot games as gamblers flock to the newly introduced Powerball.
But that doesn’t necessarily mean a windfall for the state’s schools, which receive $430 million a year from the lottery.
Despite racking up more than $45 million in new sales through the first three quarters of the fiscal year, bigger payouts mean the lottery’s net income fell $5.4 million from the previous year, according to a recent letter from Executive Director Paula Otto to Gov. Bob McDonnell. The totals are roughly on par with forecasts.
Jackpot games — which make up a relatively small part of overall lottery revenue — saw a 23 percent increase in sales from last year, largely from the introduction of Powerball in January.
“With Powerball, we now have more chances at the big jackpots, which get bench warmers into the game, people who generally don’t play until the jackpot is over $100 million or $200 million,” Otto told the Washington Examiner.
The lottery also has benefited from an inverse phenomenon: Otto said jackpot games and scratch off games have seen more customers willing to play for less potential payoff, a function of a down economy.
“We are finding more people who were willing to play the game at lower jackpot levels,” she said. “Perhaps it was people saying, ‘You know, $12 million doesn’t sound that bad, or $40 million could certainly make a difference.’ ”
Lottery proceeds make up an integral part of Virginia’s K-12 funding. Lawmakers in March crafted a budget that banks on a $5 million yearly increase in lottery revenue because of the introduction of Powerball.
The game in February doled out its first big prize of $10,000 to a Glen Allen man.
