Virginia State Lottery

The Virginia Lottery is an independent agency of the Commonwealth of Virginia. It was created in 1987 when Virginians voted in favor of a state lottery. The first ticket was sold on September 20, 1988. All profits from Virginia Lottery ticket sales go to K-12 public education. In Fiscal Year 2013, the Lottery's profits totaled $486.5 million, which accounted for approximately 8 percent of school funding in Virginia. That brought total Lottery profits in Virginia (from 1989 to June 2013) to nearly $9 billion.^[1]

Daily draw games include Pick 3, Pick 4, and Cash 5; each of which is drawn twice daily. The Virginia Lottery also offers numerous scratchcards. It is one of 45 lotteries which sells Mega Millions tickets, and one of 45 offering Powerball. Decades of Dollars is drawn Mondays and Thursdays; Mega Millions is drawn Tuesdays and Fridays, while Powerball is drawn Wednesdays and Saturdays. The Lottery maintains elaborate security procedures to protect the integrity of its games.

The Lottery's headquarters is located in downtown Richmond, Virginia. It maintains customer service centers in Abingdon, Farmville, Hampton, Harrisonburg, Henrico, Roanoke and Woodbridge.

History

America's first lottery was "The Great Virginia Lottery," held in 1612 by the Virginia Company to help fund the Jamestown Settlement; it raised ₤29,000 for the Virginia Company.^[2] Lottery proceeds helped establish early universities (including Virginia's College of William and Mary and University of Virginia), churches, and libraries.^[3] However, gambling was outlawed in Virginia in 1849.^[4]

Virginia voters approved a government-run lottery in 1987.^[5] Although some people assumed they were also voting on how Lottery profits would be spent, there was no designation made at that time. Sales began September 20, 1988. In 1989, the General Assembly directed Lottery proceeds to capital construction projects. From 1990 to 1998, the proceeds went to Virginia's General Fund. Starting in 1999, a provision in Virginia's budget called for all proceeds to be assigned exclusively to education. In November 2000, Virginia voters approved the creation of the State Lottery Proceeds Fund by an 83.5-point margin.^[6] The measure, which is a permanent part of Virginia's Constitution, directs the General Assembly to use all Lottery profits for educational purposes. The Lottery does not control how its profits are spent.

Under Virginia law, all unclaimed prizes go to the Virginia Literary Fund, which is also used for educational purposes.^[7] As of 2013, more than $234 million in unclaimed prizes have been transferred to the Literary Fund.^[1]

In 2004, retired truck driver J. R. Triplett of Winchester won the largest Virginia Lottery prize to date when he claimed a Mega Millions jackpot worth $239 million (annuity value) for the April 1 drawing.^[8] As as March 2013, seven Mega Millions jackpots and one Powerball jackpot have been won in Virginia.

Governance

The Lottery is an independent agency, separate from the other branches of government.^[9] The department is governed by a five-member board, with each member appointed by the Governor to serve a five-year term.^[10] The Lottery is headed by an Executive Director, who is appointed by the Governor.^[11] On February 1, 2008, then-Gov. Timothy Kaine appointed Paula Otto, a former spokesperson of the Lottery and an associate director of the School of Mass Communications at Virginia Commonwealth University, as the fourth executive director in the Lottery's history.^[12] Otto was reappointed by Gov. Bob McDonnell on November 5, 2010.^[13]

In Fiscal Year 2013, Lottery sales were nearly $1.7 billion. The lottery generated $486.5 million, or 28.7%, for public education, 60.7% was paid out as prizes, 5.6% was paid to retailers as sales commissions, and 5% covered the Lottery Department's operational expenses.^[1]

The Lottery conducts an annual Super Teachers contest. A Commonwealth-wide panel of educators annually select one Super Teacher from each of eight regions. Each winner receives a $2,000 credit for schoolroom supplies from The Supply Room Companies and $2,000 from the Lottery.^[14]

Games

The Virginia Lottery gives top-prize winners of certain games a choice of cash or annuity. Installment winners receive: 26 equal yearly payments in Mega Millions, 30 yearly payments of $250,000 in Decades of Dollars, or 30 graduated payments in Powerball. (Virginia Lottery winners have a 60-day period to choose cash or annuity in the above three draw games.) When a Virginia Lottery top-prize winner of Powerball, Mega Millions, or Decades of Dollars is claimed, the Lottery purchases sufficient US Government bonds to cover the prize. If the cash option is chosen, the winner receives two payments; the first when the claim is made, and the second after the Lottery sells the US government bonds that were purchased to invest the prize proceeds.^[15] The actual cash payment depends on the market value of the bonds on the date they are sold.^[16] As winnings from gambling are considered an income, federal laws require the Lottery to withhold Federal Income Tax on all prizes (whether lump sum or annuity) over $5,000.

Virginia Lottery sales are conducted by licensed businesses which receive a commission. Credit cards cannot be used to purchase Lottery tickets.^[17] The Lottery offers a subscription service for Mega Millions and Win for Life by automatic withdrawals from the subscriber's checking account.^[18]

Virginia-only draw games

Within Virginia, the Lottery offers these daily drawing games: "Pick 3", "Pick 4" and "Cash 5."

Pick 3 and Pick 4

Virginia offers three- and four-digit games that are similar to those of other US lotteries. The maximum prize on a $1 play are $500 in Pick 3 and $5,000 in Pick 4.^{[19][20][21][22]}

Cash 5

Virginia's Cash 5 game draws five numbers from a pool of 34. The minimum wager is $1; games can be played for 25 and/or 50 cents providing the total is $1 or more. The top prize on a $1 single-game wager is $100,000; that pool's liability limit is $2,000,000.^[23][24]

Millionaire Raffle

In 2007, the Lottery offered its first Millionaire Raffle; 330,000 tickets were sold at $20 each, after which numbers were randomly drawn to win up to $1 million. The Lottery has held Millionaire Raffles irregularly: some during spring; but most have been drawn on New Years Day. Rules vary with each raffle; the top prize is usually always $1 million; generally, all raffle prizes are paid in lump sum.^[25]

Multi-jurisdiction draw games

Decades of Dollars

Decades of Dollars is a drawing game offering a top prize of $250,000 per year in 30 annual installments ($7.5 million total) or a cash option of $4 million. Drawings are twice a week: on Monday and Thursday. Each play costs $2. Players choose six numbers from 1 through 47.

Any ticket matching at least two numbers wins. Matching two numbers (on a Virginia-generated ticket) wins a $2 quick-pick Decades of Dollars ticket; three numbers wins $10, four numbers wins $100. Matching five numbers wins $10,000. A ticket that matches all six numbers wins the top prize.

Virginia' first Decades of Dollars top prize-winning ticket was sold in Norfolk for the April 12, 2012 drawing. A second top prize-winning ticket was sold less than a month later in Waynesboro. As of March 2013, there had been 420 second-prize ($10,000) Decades of Dollars winning tickets bought in Virginia.

Mega Millions

Mega Millions is a drawing game played in Virginia and most other U. S. states. Jackpots start at $15 million and grow with each drawing in which there is no jackpot winner. Drawings are held Tuesdays and Fridays.^[26] Players select five numbers, 1 through 75, plus a Mega Ball number, 1 through 15. A ticket matching all six numbers win the jackpot. The jackpot is pari-mutuel, meaning that if multiple tickets match all six numbers, each of them receives an equal share of the total jackpot. Mega Millions jackpot are offered as an annuity, although a cash option is also available.

As of January 2014, eight Mega Millions jackpots have been won in Virginia.^[27]

Powerball

Powerball is played in 45 jurisdictions. It began in 1992. On October 13, 2009, the Mega Millions consortium and the Multi-State Lottery Association (MUSL; which coordinates Powerball) reached an agreement in principle to cross-sell Mega Millions and Powerball in US lottery jurisdictions. Virginia, already offering Mega Millions, joined Powerball on January 31, 2010.^[28] Top-prize Powerball winners can choose cash in lieu of annuity payments.

A basic Powerball ticket costs $2. The Power Play option, begun in 2001, adds $1 to the price of each ticket in a given playslip, so a Powerball ticket with Power Play costs $3 (up from $2).

Win for Life

Win for Life is a drawing game offering a top prize of $1,000 per week for the life of the winner. Second prize is $52,000. Players select six numbers, 1 through 42. The game is unusual because a total of seven numbers are drawn, even though a ticket only contains six numbers. The seventh number is a "Free Ball" which can be used to increase prizes, except the top prize. To win the top prize, a ticket must match the first six numbers.

Fast Play and scratcher games

From its inception, the Virginia Lottery has sold instant (scratcher) games. Originally, all scratch tickets were $1 each; in the mid-1990s, the first Bingo scratcher was introduced; each Bingo ticket cost $2. Eventually, higher-priced scratchers (including $3, $5, and $10) with larger prizes were introduced. Currently, the most expensive scratchers are $20 each. All $20 games currently in circulation and many $10 games offer a top prize of at least $1 million (annuitized). The largest prize offered to date in a Virginia scratcher is $5 million (annuity). Winners of scratcher annuity prizes of at least $1 million can choose cash (just as in the top prizes in Powerball, Mega Millions, or Decades of Dollars).

In 2007, the Lottery began complementing scratchers with its first Fast Play game: "Fast Play Bingo". As with traditional Lottery games, tickets are printed by the terminal; however as in scratchers, winning status is determined when the ticket is printed (there is no drawing for a Fast Play game). More Fast Play games have been added over the years, and as of 2013, the Lottery maintains a continually-changing lineup of Fast Play games at $2, $3, and $5 prices: each with its own rules and prizes.

Security

Virginia Lottery drawings are conducted under elaborate security protocols, in which each drawing supervised is by two Lottery employees and a representative of an independent accounting firm. The set of balls used for each drawing are randomly selected from a number of sets; and detailed records of "test" drawings are maintained to prevent systematic biases.^[29] In addition, forging lottery tickets, or tampering with a Lottery drawing is a Class 5 felony.^[30] All Virginia Lottery employees^[31] and applicants to become Lottery sales agents^[32] are fingerprinted and subject to criminal background checks.

Theft of Virginia Lottery tickets are investigated by both the Lottery and local law enforcement agencies.

Compulsive gambling

Virginia law requires that each ticket include a telephone number for a counseling service that addresses compulsive gambling.^[33] That number links to the Virginia Problem Gambling Helpline, which is maintained by the Lottery. The Lottery also includes information on compulsive gambling on its website.^[34] and has produced Problem Gambling and Play Responsibly public service announcements for TV and radio. The Lottery supports National Problem Gambling Awareness Week by suspending its television and radio product advertising for that period.^[35]

See also

• Gambling
• Lotteries in the United States

References

External links

• VALottery.com – Official site

v t e State agencies of Virginia Boards Commonwealth Transportation Board Virginia Board of Game and Inland Fisheries Virginia State Board of Education Commissions Virginia Employment Commission Marine Resources Commission State Corporation Commission Workers' Compensation Commission Departments Department of Agriculture and Consumer Services Department of Alcoholic Beverage Control Department of Conservation and Recreation Department of Corrections Department of Education Department of Forestry Department of Game and Inland Fisheries Department of Health Department of Historic Resources Department of Mental Health, Mental Retardation, and Substance Abuse Department of Motor Vehicles Department of Rail and Public Transportation Department of Transportation Law Enforcement Virginia Capitol Police Virginia Marine Police Virginia Port Authority Police Virginia State Police Other Library of Virginia Virginia Information Technologies Agency Virginia State Lottery Virginia Retirement System Virginia Port Authority