The Virginia Lottery is pleased to submit its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024. Lottery management is responsible for the accuracy and completeness of all data and disclosures in this report. To the best of our knowledge, the information presented is accurate and complete in all material respects and fairly depicts the financial activities and position of the Lottery.

This report is organized into four sections. The introductory section includes this letter of transmittal, an organizational chart, and an historical overview. The financial section includes the independent auditor’s report, management’s discussion and analysis, and the audited financial statements with accompanying notes. Historical, demographic, and industry comparative data are presented in the statistical section of this report.

The Virginia Lottery was created in January 1988 to operate a lottery and produce revenue consonant with the probity of the Commonwealth and the general welfare of its people, to be used for the public purpose. The first lottery ticket was sold on September 20, 1988.

The Lottery is considered a major enterprise fund of the Commonwealth of Virginia and is reported as a proprietary fund within the state’s Annual Comprehensive Financial Report. The fund is operated in a manner like a private business enterprise.

During its 35 years of operation, the Lottery has offered a variety of instant and draw-style products. The instant games consist of preprinted “scratch-off" tickets, which contain various symbols and captions covered by latex material. Players instantly determine the winning or non-winning status of their tickets by removing the latex. Draw-style game tickets are produced through terminals at lottery retailer locations based on player instructions for number selection. Drawings are conducted to determine winning combinations. Effective July 1, 2020, the sale of lottery products over the internet became legal and iLottery sales began with eInstant games and certain draw-style games. In fiscal year 2024, iLottery activity represented over half of all lottery sales, a first for any U.S. lottery. Historical data for all lottery products are presented in the financial and statistical sections of this report.

Also, effective July 1, 2020, the responsibilities of the Virginia Lottery were expanded to include the regulatory oversight of legalized mobile sports betting and land-based casino gaming. The first legal sports betting wagers were accepted by licensed operators in January 2021, and the first land-based casino began operations in July 2022. Taxes from these regulated activities are collected by the Lottery and distributed to the statutory recipients as established in the Code of Virginia, including the general fund, problem gambling treatment and support fund, school construction fund, and the locality where the land-based casino operates. Historical data for licensed operators are presented in the financial and statistical sections of this report.