(The Center Square) – Virginia ranks among the top states for lottery spending, with residents spending more per person on tickets than nearly any other state, according to a 2023 analysis by The Motley Fool.
Using U.S. Census Bureau and state revenue data, the report found that Virginia had the third-highest lottery sales per capita at $504, trailing only Rhode Island at $543 and Massachusetts at $867. Virginia also led the nation in lottery prizes paid per dollar spent, with a payout rate of 78 cents on the dollar.
Neighboring Maryland saw average spending of $409 per person and a 68-cent return rate.
In total, Virginians purchased more than $4.4 billion in lottery tickets in 2023, accounting for 1.2% of total lottery sales nationwide. While lottery proceeds contributed nearly $809 million to state revenues, that still represented just 2.2% of total tax collections, according to the report.
The Virginia Lottery’s 2023 financial report said more than $781 million was transferred to the Lottery Proceeds Fund to support K-12 public education. Since its creation in 1999, the fund has provided more than $13.6 billion for Virginia schools.
But not all oversight has been smooth.
A 2024 audit by the Virginia Auditor of Public Accounts flagged multiple significant internal control issues within the Virginia Lottery’s IT systems.
The audit cited missing documentation for vendor oversight, lack of annual security audits, and failure to verify whether third-party contractors were meeting state cybersecurity standards.
It also noted that the agency had not formally restricted the location of data storage, raising the possibility that sensitive information could be stored outside the U.S.
In a written response, Virginia Lottery Executive Director Khalid Jones said the agency is continuing to update its internal systems. He said full compliance with the state’s new standards is not expected until 2026, and improvements to IT asset tracking and policy updates are targeted for June 2025.
A 2022 report by the Joint Legislative Audit and Review Commission praised the Virginia Lottery’s capacity to manage expanded gambling operations. It recommended making the lottery the state’s primary gaming regulator.
