Lottery and iLottery in the US - a Traditional and Digital Gaming Fusion

The very first virtual sports product has been launched in the US by the Virginia Lottery in collaboration with Aristocrat Gaming and Inspired Entertainment. Referred to as VSports, these virtual lottery games include sports such as basketball, football, horse racing, and more, available through the Virginia Lottery's online platform.

The Virginia Lottery has made history by becoming the first US regulated lottery to offer virtual sports draw games online, marking a groundbreaking step in the evolution of digital lottery entertainment. This new suite of games, called VSports, was launched through a strategic partnership involving Aristocrat Interactive, Inspired Entertainment, and NeoPollard Interactive.

A pioneering move in the US iLottery market

VSports represents the first-ever introduction of virtual sports to a regulated digital lottery platform in the United States. The games simulate popular sports such as basketball, football, and horse racing, and are now available to players through the Virginia Lottery's online platform. Unlike traditional sports betting, these games rely on a certified random number generator, delivering outcomes that are both fair and entertaining, but not tied to real-world events.

Offering new ways to play, the virtual games operate on a frequent, rapid schedule - running every two to three minutes - and replicate the excitement of live sports for digital lottery players. This innovation is designed to enhance engagement while aligning with regulatory standards in the gaming space.

Tech integration and key partnerships

The new product was developed by Inspired Entertainment, a global leader in virtual sports content, and was seamlessly integrated into the Virginia Lottery's digital ecosystem through Aristocrat Interactive's Fusion aggregation platform.

NeoPollard Interactive also played a key role in delivering the content by leveraging its longstanding operational partnership with the Virginia Lottery. The collaborative approach helped ensure that the integration was both technically robust and aligned with the lottery's strategic goals.

The Managing Director of Aristocrat Interactive iLottery, Chris Shaban, highlighted the significance of the launch, stating: "The introduction of these first-of-its-kind draw games for the Virginia Lottery exemplifies how customers can benefit from strategic integrations that drive new innovations."

A win for players and public education

From the Virginia Lottery's perspective, the introduction of VSports is more than just a novel gaming option - it's a way to expand player offerings while staying true to its mission of supporting public education.

"This relationship allows us to provide a wide range of new, distinctive games that we are confident will be exciting and appealing to our players," said the Deputy Executive Director of Marketing at the Virginia Lottery, Scott Kenyon. "At the same time, it supports the Lottery's overall mission of raising revenue for K-12 public education in the Commonwealth."

Part of a broader growth strategy

The launch of VSports comes amid strong digital performance from Aristocrat Interactive in 2025, particularly in the North Carolina and Virginia markets through its NPI venture. The iLottery and digital content segments were among the few bright spots for Aristocrat in the first half of the year, contributing to a 9% increase in overall group revenue despite headwinds in its international gaming division.

The success of the Virginia launch is expected to pave the way for further expansion of virtual sports offerings in other regulated lottery markets. Inspired Entertainment confirmed that more VSports titles are on the horizon, describing the current rollout as the first phase in a broader content roadmap aimed at transforming the digital lottery experience nationwide.

As digital gaming continues to gain momentum across the US, the Virginia Lottery"s VSports debut could serve as a blueprint for how traditional lottery organizations can innovate while maintaining regulatory compliance. With more titles expected to launch and additional states watching closely, this pioneering move may be just the beginning of a larger shift in how Americans engage with lottery games online.

Governor Greg Abbott officially signed SB 3070, allowing the Texas Lottery to continue until 2029 but also disbanding the Texas Lottery Commission, which operated the Texas Lottery since its inception more than 30 years ago. Senate Bill 3070 also criminalizes lottery courier operations and prohibits ticket sales online, and beginning September 1, the Texas Lottery will be operated by the Texas Department of Licensing and Regulation.

The Texas Lottery Commission, which has overseen the state's lottery system for over three decades, will be dissolved following the passage of a new law that imposes strict limitations on the games. Governor Greg Abbott signed Senate Bill 3070, keeping the Texas Lottery operational through 2029 but placing it under new management and tightening regulations around ticket sales - especially online.

The move comes after a legislative session in which the future of the Texas Lottery became a battleground, drawing scrutiny over recent controversies and the commission's oversight.

Online sales banned, oversight transferred

Under SB 3070, all online and app-based lottery ticket sales, including those conducted by courier services, are now prohibited. Starting September 1, the Texas Department of Licensing and Regulation will assume responsibility for lottery operations. The now-defunct Texas Lottery Commission's functions and remaining staff will be folded into TDLR during the coming months.

A TDLR spokesperson confirmed the formation of a transitioning team and the creation of working groups comprised of staff from both agencies, though the department said it was "premature" to disclose further details.

Controversies spark legislative action

The legislative crackdown follows two major scandals: the controversial win of a $95 million Lotto Texas jackpot by a group that allegedly bought 99% of the 25.8 million ticket combinations, and the rise of lottery courier apps like Jackpocket. These apps allow users to order tickets digitally, which are then printed and scanned by third-party retailers.

Though the Texas Lottery Commission had permitted such operations for years, it abruptly reversed course mid-session, drawing criticism from lawmakers like Senator Bob Hall and Lt. Governor Dan Patrick. Hall, who authored SB 3070, described the bill as "the next best thing" to abolishing the lottery altogether.

The new law makes selling tickets online or through any digital platform a Class A misdemeanor, carrying penalties of up to one year in jail. It also limits in-person ticket purchases to a maximum of 100 per player at licensed retailers.

Lottery's revenue saves it - for now

Despite vocal opposition from Hall and other critics, complete elimination of the lottery failed to gain traction due to its critical role in public education funding. The lottery contributes roughly $2 billion annually to Texas schools, a sum lawmakers were unwilling to forfeit during the current budget cycle.

"It didn't take a lot of in-depth discussion," Hall said. "We're not going to be able to end [the lottery]... We need the income to balance the budget for this next biennium."

Nevertheless, the future of the Texas Lottery remains uncertain. SB 3070 sets a new expiration date of 2029, after which lawmakers will be required to reauthorize it following a Sunset Advisory Commission review.

Leadership exodus and ongoing investigations

The dismantling of the Texas Lottery Commission comes amid a wave of resignations. Executive Director Ryan Mindell stepped down in April, following the earlier departures of two of the five commissioners. Meanwhile, investigations into lottery operations continue.

The Texas Rangers are currently probing the controversial $95 million jackpot as well as the activities of online courier services. Another case involves an $83.5 million win by Kristen Moriarty, a Houston resident who purchased her ticket via Jackpocket. Despite being declared the winner in February, Moriarty has not been paid and has reportedly not been contacted by DPS. "It was excitement and happiness at first, and then it just progressed to stress and anger," she said.

The Texas Lottery Commission has cited the ongoing investigation as the reason for the delay in her payout. DPS has declined to comment, citing policy on active investigations.

The Texas Senate has decided to make some sweeping regulatory changes to the Texas Lottery. It would effectively discard the Texas Lottery Commission but it will transfer the control to the Texas Department of Licensing and Regulation as well as make several changes to how the lottery is managed in the state.

In a sweeping move aimed at overhauling the administration of Texas’ lottery system, the Texas Senate unanimously approved legislation that would abolish the Texas Lottery Commission and transfer oversight responsibilities to the Texas Department of Licensing and Regulation. The bill, Senate Bill 3070, sponsored by Senator Bob Hall, passed 31 - 0 late last week.

While the measure retains the existence of the lottery itself for now, it marks a significant shift in governance and opens the door for the possible elimination of lottery gaming in the state within two years. The Texas House has already begun fast-tracking the bill for committee discussion ahead of the legislative session’s end on June 2.

Sweeping changes to how the lottery is operated

Under SB 3070, the TDLR would not only assume administrative control but also implement a series of new restrictions aimed at increasing transparency and accountability. For instance, the bill would criminalize online lottery play, prohibit consumers from purchasing over 100 tickets at once, and ban the use of courier services to buy tickets on behalf of others. Additionally, it would cap the number of ticket-printing terminals available to licensed retailers.

These changes come in response to a high-profile incident in 2023 in which a lottery syndicate won a $95 million jackpot after reportedly spending $25 million to secure 99% of all possible number combinations. The episode triggered widespread media coverage and legislative scrutiny, with many lawmakers pointing to it as a sign that the lottery system was vulnerable to manipulation.

Temporary lifeline: two-year trial before sunset review

Though SB 3070 preserves the lottery for now, its long-term fate remains uncertain. The legislation includes a provision for a limited “sunset review” by August 31, 2027, which could lead to the complete shutdown of the lottery if lawmakers are not satisfied with how the new oversight regime performs.

Lt. Governor Dan Patrick, a vocal proponent of the reform, framed the legislation as a probationary period for the state’s gaming operations. “We’re going to give the extension to the game to the TDLR,” Patrick said in a video statement. “They will oversee it with a brand-new leadership team and new guardrails … We can ban it in two years if the TDLR does not operate it as we instruct them to.”

The potential stakes are high. The Texas Lottery contributes approximately $2 billion annually to the state’s coffers, primarily benefiting education and veterans' services.

Top state officials granted inspection authority

One of the more unusual features of SB 3070 is a provision allowing top Texas officials - including the governor, lieutenant governor, and attorney general - to conduct in-person inspections of licensed lottery retailers.

This clause appears to have been influenced by Lt. Gov. Patrick’s own efforts earlier this year to investigate Winner’s Corner, a retail outlet owned by lottery courier Jackpocket. Patrick had claimed he was denied full access when attempting to scrutinize the store following the sale of an $83.5 million winning ticket.

“Now, I’ll be a lottery inspector, and I can drop in and go anywhere I want to make sure everything is on the up and up,” declared Patrick in a video. He further alleged that his experience with Winner’s Corner led to broader revelations about what he called “alleged corruption” within the Lottery Commission.

Path forward hinges on House and Governor

The Texas House must now act quickly to move the bill forward before the legislative session concludes. If the legislation is not approved and sent to Governor Greg Abbott before June 2, it cannot be taken up again until the legislature reconvenes in 2027.

Sen. Hall’s initial bill, SB 1988, had called for the complete abolition of the lottery but failed to gain traction. SB 3070 represents a compromise that leaves room for reform while keeping the game alive - for now. The coming weeks will determine whether the bill becomes law and whether the Texas Lottery’s future remains a gamble or becomes a more tightly controlled enterprise.