RD334 - Virginia Lottery Annual Financial Report for Year Ended June 30, 2010


Executive Summary:
Virginia Lottery ticket sales totaled $1.435 billion for fiscal year 2010, the highest total ever for Virginia Lottery sales. Net proceeds totaling $430.2 million were earned for the Lottery Proceeds Fund, all of which are constitutionally mandated to support local K-12 public education. Highlights of the fiscal year include:

• Sales increased by $69.5 million (5.1 percent) from last year to $1.435 billion.

• Net income was $430.2 million, a decrease of $8.9 million (2.0 percent) from last year.

• Prize expense increased $71.7 million (9.2 percent) to a record total of $852.7 million.

• With the sales increase, retailers earned $3.5 million (4.6 percent) more than last year, with compensation paid to retailers totaling $80.4 million (record). Retailers earned, on average, 5.6 cents on each dollar sold, the same as last year.

Although by law, the Lottery may spend up to ten percent of sales on operating costs, which includes all expenses except prizes and retailer compensation, these costs were only 5.1 percent of sales for the fiscal year.