Virginia Lottery Gives $454 Million to Schools

RICHMOND, Virginia – (PRESS RELEASE) -- With a record-setting performance in Fiscal Year 2006 (FY06), the Virginia Lottery is turning over more than $454 million to Virginia's K-12 public schools -- an event Virginia Governor Tim Kaine marked today by accepting a ceremonial check from new Virginia Lottery Executive Director Sheila Hill-Christian.

"This is a substantial dividend for K-12 public schools in the Commonwealth," said Governor Kaine. "Lottery profits are an important part of our significant investment in public education, which in itself is an investment in making sure we continue moving Virginia forward."

Governor Kaine visited the Lottery's headquarters in downtown Richmond to accept the check on behalf of Virginia's public schools. Lottery proceeds have been earmarked exclusively for K-12 public schools in the Commonwealth since 1999. In 2000, Virginia voters made that a part of the state's constitution by overwhelmingly approving a constitutional amendment requiring Lottery profits to be used for K-12 public education.

On June 30, in accordance with that amendment, the Lottery transferred $454 million into the Lottery Proceeds Fund, to be distributed by Virginia's Department of Education.

"We are excited to have been able to make this contribution to public education in the Commonwealth," said Ms. Hill-Christian. "It represents nearly a seven and a half percent increase over last year."

The increase comes as a result of record Lottery sales of more than $1.365 billion. That represents an increase of more than $31 million from last year, which is about two percent. New records were set in sales of the Lottery's Pick 3, Pick 4, Mega Millions and Scratcher games.

One of the year's highlights was the retirement of Lotto South, in favor of the new Win For Life game. The new multi-state game, played in Virginia, Georgia and Kentucky, offers a top prize of $1,000 per week for the rest of the winner's life. Since the first drawing on March 1, seven Virginia players won the lifetime prize and another 35 players each won the game's second highest prize of $52,000.

If you ask most people what game they most associate with the Virginia Lottery, there is a good chance they will answer "Mega Millions." The ability of Mega Millions to attract national headlines with amazingly-high jackpots continued in FY06. There were four big jackpot runs during the fiscal year, leading up to the following big drawings:

* $258 million on September 16, 2005

* $315 million on November 15, 2005

* $270 million on February 28, 2006

* $265 million on April 18, 2006

Each of these jackpot runs was accompanied by excitement, long lines at Virginia Lottery retailers and increased profit for Virginia's public schools. Overall, Mega Millions sales in Virginia were up 16 percent, to a total of $159.7 million. While there was no jackpot winner in Virginia during the year, the Commonwealth did see 37 winning $250,000 tickets.

A trend from previous years that continued in FY06 was the popularity of scratch games in Virginia. Scratchers accounted for $689.3 million of the Lottery's sales in FY06, more than half of the Lottery's total sales. With popular games like Million Dollar Madness, Emerald Green 7's and Harley- Davidson(R) Ultimate Ride, scratch ticket sales increased 1.4 percent from the previous year to set a new record.

Virginia Lottery players won a total of $773.5 million during the fiscal year. Interestingly, more than $14 million of those prizes were never claimed by the people who won them. By law, all unclaimed Lottery prizes go to the state's Literary Fund, which is used solely for educational purposes, such as school construction, renovation, and teacher retirement funding.

It was not just players who won big in FY06. Virginia Lottery retailers received a record $76.2 million. The retailers earned that amount by selling Lottery tickets, cashing prizes, and participating in retailer incentive programs and contests.

What is in store this year as the Virginia Lottery turns 18? One thing Virginians can expect to see is an increased effort to educate players and non-players alike that Lottery profits go exclusively to Virginia's K-12 public schools.

"One recent study showed that as much as half the residents of the Commonwealth don't know how they benefit from Lottery proceeds," said Ms. Hill-Christian. "We have an important message and we are going to work to deliver it."

Another big challenge is competition from across the state line. On March 30, 2006, the new lottery in North Carolina began selling tickets. Up until then, North Carolina residents accounted for an estimated 7 to 10 percent of Virginia Lottery sales. The new lottery did not have a major effect on Virginia Lottery sales in FY06, because it started late in the fiscal year. It will certainly have a negative impact on sales in Virginia in FY07. However, Ms. Hill-Christian says players will benefit.

"Competition is good for the product and good for the consumer. We intend to work hard, launch exciting games and continue to uphold the highest ethical standards as we pursue our mission of helping Virginia's public schools."