The Virginia Lottery achieved its highest-ever sales total during the commonwealth’s 2026 fiscal year, which ended June 30, surpassing the $6 billion mark for the first time.

On Monday, August 10, the Virginia Lottery presented Governor Abigail Spanberger (D) with a check for $914 million to support public K-12 education.

“These are dollars that are going to public education. They are going to benefit our kids, our classrooms, and importantly, as we continue to invest in Virginia public schools, they will benefit Virginia’s future,” Spanberger said.

Since voters approved its creation through a statewide referendum in 1987, the Virginia Lottery has directed its proceeds toward public education. To date, it has contributed more than $18 billion to Virginia’s public schools.

Record Sales Generate Record Payouts

The Virginia Lottery recorded unprecedented sales during fiscal year 2026, with players spending $6.36 billion on lottery games. This was the first time annual sales exceeded $6 billion and represented an increase of approximately $588 million, or more than 10%, compared with the previous year.

Despite the record sales, the lottery did not achieve its highest-ever net proceeds. Players enjoyed substantial success, collecting more than $5 billion in winnings for the first time. Meanwhile, operating expenses rose by $248.3 million, reducing the amount ultimately available for public education to $914.4 million.

The check presented to Spanberger totaled $914 million because, as the lottery explained, “not all proceeds earned in a fiscal year are appropriated in that year.”

The lottery’s $914 million in net proceeds represented its second-highest annual result, behind only 2024, when it generated $934.1 million.

Virginia also benefits from being among just nine states, alongside Washington, DC, that permit instant online lottery games. These digital games, which resemble slot machines, combined with online purchases of traditional draw tickets and scratch games, generated $4 billion of the lottery’s total FY26 sales.

State lawmakers in Richmond authorized online lottery sales in 2020 during the COVID-19 pandemic. The move delivered rapid growth, with annual sales climbing from $2.14 billion in 2020 to more than $3.2 billion in 2021.

Lottery Remains Strong Despite Growing Competition

Less than a decade ago, the Virginia Lottery faced relatively little competition from other forms of legal gambling. Until 2018, the lottery and pari-mutuel horse racing wagers were the only permitted gambling options in the commonwealth.

That landscape began changing in April 2018, when lawmakers approved historical horse racing (HHR) machines, which resemble slot machines, as part of an effort to revive Virginia’s struggling horse racing industry. In 2020, the state expanded its gambling market further by authorizing land-based casinos and online sports betting.

Despite the emergence of these competing gambling options, the Virginia Lottery’s FY26 results indicate that it remains financially strong and well-positioned to maintain its performance in the years ahead.