Lottery Sales Record and Where Money Goes

John Reid
Thursday, July 12th

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

I have to admit. On my most desperate mornings. Have really reached that point when I was a channel laid down. How about a year number six or seven years getting up at 3 o'clock in the morning I would go and get my. Red Bull at the convenience store over the middle of the end and I via lottery ticket like you know what please god help me get out. I mean I love the show and everybody was super but the app. Orders you know there are financial plan will and that's right right we could she didn't have enough money really do invest so you know a lot of people do that whether your work and at the overnight shifted to TV station or whether you're at the doughnut store. The Virginia lottery is seen by a lot of people as the way to home school or you know hit big at some point Kevan hall. Do I have known for years because he used to be. Would they would call us political hacks but Jessica have you and I had a good similar job titles in the senate and running communications and helping to shape policy. For the big dogs in the senate. And Kevin. Has landed at the Virginia lottery is the executive director says congratulations. I resilient job I had been in the studio a dozen or a hundred times and always says that staffer is little odd to me on this site your I don't know around Europe and you are the executive director this time the principle it is great to be here and cannot say something about civility. You know it you would hour on opposite sides of of a lot of debates. And you feel very strongly about your positions in your bosses positions I did the same. I don't think you and I have ever had a cross word personally at all absolutely not and I'm appreciative of that I think Richard and we'll yeah and I hope Richmond won't. You know continue to uphold. Some sort of standard and mean there's not a boxing match but it's a boxing match not aid. They cage match we're trying to destroy the other person it's distressing when things get really toxic what they are today yet so I'm I'm I'm glad I am safely. When the sign of the beltway. Meet to discuss the welcome back to Richmond we're glad you knew ledger here so tell me about this record amounts. Of cash that you all have cleared at the Virginia a lot. We had a great years the state budget year ends June 30 and the preliminary numbers look really solid. Thanks to our great regional partners and to our players. We have recorded record sales two point one billion dollars for the budget year. And by law all of our profits go to support K12 public education programs. So we will be turning over to the general assembly a record 600 million dollars to pay for school programs across commonwealth. And those are those are real dollars and they go into the classroom. Known for instance chesterfield county. Will get eighteen million dollars city Richmond nineteen million and Raikkonen twenty million. On the pay for programs ranging from. Child nutrition to algebra. And reading programs all the way up to the high school level with Career Education. You know that's a significant amount of money. Forgive me for asking this so what happened to the rest stop it has acted up most of it goes on and prizes. Oh OK I don't happen goes out of prizes. We have very low margins he knew in the back office the law allows up to 10%. Byrd advertising and just administering. Human bribe a large enterprise we. Typically spend half that sometimes effort if people actually win yeah they did OK can definitely do that. Nothing one point three billion went out the yen in all right and prize money and then have a relatively low overhead for rapper like that's correct OK you know it's good fun for a good cause you know so we like to look and it is a social purpose when you buy a lottery ten. What is the trend let's just take the last ten years when a star like 8687. Late eighties and then referendum and has started with a single scratch ticket right now remember and it's and it's grown and evolved in fact we mark our thirtieth. Anniversary this fall. That's remark I remember when I was in high school saint Christopher's I went out at midnight involved one of the first scratch off tickets. Brought to chapel the next morning. And the the minister did not a clear choice troll this for you know he was not happy that I decided to make a big deal out of that and then chapels I remember when the things start to what is the trend line. Over those decades. That has led you to two point 14 billion dollars. You know I don't it's it. Number one having a thirty year. Brand of integrity matters. Now people know where the money goes. And also here we have a strong retail footprint 5200 retailers carry our product. And also we just have. We've figured out how to do this we have a pretty strong portfolio. Of games that are available in a different price points different prize structures. And our number one product or scratch tickets went up 56% of our business of the scratch tickets not to big huge mega jackpot game and that's. Day to day that's pretty profitable Gloria. Well I gotta tell you oh we did get a phone call yesterday when the current governor was here and they didn't make it on the year but they were going to ask where the money. Goes I guess. They under the general member of the general public understands that he goes to. Education. But what does that mean in practical sense you indicated that diesel local little localities get big numbers that's terrific what does that actually mean you know. I think the disconnect is generally speaking. State dollars go for programs its local dollars they go for buildings. And maintenance welcome so you know we're pretty we we deposit our money with the general assembly and then they appropriated to specific programs at the local level and we also we know unclaimed prizes and that that was a fourteen million dollar check over the past year. Those go into a special fund that makes low interest loans to local governments so they can build and rehabilitating buildings and a great technology so. Yet even even with all that in these dollars I am as proud as I can be that our players helped with that level of support. It's still only 10% of what the state spends on K12 education so not the primary. Funding mechanism that pitch but those are big checks that's significant amount of money real quick I think I'd be remiss. If I didn't ask you about the downside to this do you find that people get addicted to this stuff. You know the research shows there is some specific relatively small number of people know developer of problem. You know I'm proud that Virginia lottery has nationally recognized program. Where we provide resources to help people that now they might never a problem in fact march is a national problem. Gambling month we took all our advertising down. We took a video to educate all of our retail partners. About the signs of addiction and we have all sorts of resources and partnerships available. It's on our website via lottery dot com a cut. Well listen that's a great news that there's more money available for schools and you know. Who you wanna be cautious figure out there. In any irresponsible to have play responsibly don't put the whole paycheck to ham on Friday up. But Cavanaugh listen congratulations on the new job glad to have you back here in Richmond and really do appreciate you even coming into the studio is great to be here to talk here thanks John thanks Kevin.