Kentucky Lottery hit $8b. What was behind this record-breaking year?

The Kentucky Lottery has now generated $8 billion for the state since 1989. Fiscal year 2026 added to that total with record sales of $2.38 billion. How does a 37-year-old lottery keep growing in a crowded gaming market? We asked CEO and President Maggie Garrison.

A milestone built on one mission

Garrison called the $8 billion mark an "incredible milestone" and credited her whole team. "We are passionate about helping Kentuckians and extremely proud to achieve this incredible milestone of $8 billion in proceeds for the state," she remarked.

She also pointed to necessary changes:

Over the years, so much has changed, and it's our duty to make sure we're innovating and providing players with what they want so we ultimately can transfer maximum funds to the state.

What drove a 10.4% jump in sales

Sales rose $224 million over last year. Garrison named three drivers.

The first was Powerball. Two jackpots climbed above $1.7 billion. She explained:

Once jackpots cross the billion-mark, we see a surge of players buying tickets. Some people don't play regularly, but those eye-catching jackpots inspire them to take a chance.

The second was retail. "We have 3,500 retailers in every county of Kentucky," Garrison noted. New equipment, she said, helps "attract new players who have not engaged with the Lottery before."

The third was iLottery. "Our instant play iLottery games continue to perform extremely well," she said. New game styles and added channels, she pointed out, give players "added convenience."

Where the money goes

A record $419 million went to scholarships and grants this year. The Kentucky Higher Education Assistance Authority (KHEAA) administers those programs. Garrison stated:

These programs are need-based and merit-based, which include scholarships for National Guard members, teachers, and even high school students to earn college credit.

The result:

Since our inception, the Lottery has assisted over 1.1 million students, which is an accomplishment we are very proud of.

Connected Play: a first in the nation

Kentucky is the first state lottery to offer Connected Play. The feature links in-store and online purchases.

Players can buy retail tickets with a mobile wallet. They can also redeem winning retail tickets, up to $600, straight into that wallet. "The Connected Play feature is all about creating a unified experience for players, offering seamless play at retail and online," Garrison said.

Online growth, retailers included

The Lottery has sold games online for 10 years. "Which was something never contemplated 37 years ago," Garrison remarked.

So does online play pull business from the counter? Garrison does not see it that way. iLottery offers "some new games with unique experiences which are very different from what we offer at retail, so we're attracting a new audience," she said. Retailers remain central. She stressed:

We consider our retailers an extension of our team. They are our original influencers.

The numbers back that up. Retailers earned more than $80 million in commissions and incentives last fiscal year. The Lottery has also invested in new equipment and a new central gaming system.

Competing for discretionary dollars

Sports betting, casinos, and prediction markets all chase the same wallet. Garrison acknowledged the pressure. She remarked:

We continue to look for ways to be the game of choice and compete for discretionary dollars, and that competition extends beyond just gaming. Fuel prices and rising costs create challenges for us as well.

Her answer is innovation. "It is so important for us to keep innovation top of mind," she added. New retail equipment and Connected Play are "just a couple of ways we offer convenience to players and modern ways to play lottery." The team is also exploring "non-traditional retail spaces."

Then she pointed to what sets the Lottery apart:

One hundred percent of our proceeds go to the state. Even if you don't win, you're funding education, and that makes the lottery special and sets us apart from other gaming.

Powerball X’s and O’s: early days

Kentucky was one of 23 jurisdictions to launch Powerball X’s and O’s in early September. The game ties into the NFL. That makes it different from anything else in the portfolio.

"This game is very different from others, with the unique tie into the NFL, so players are still learning about it," Garrison said. The first two promotional drawings are done. "We were so pleased to see that several Kentucky players won NFL collectibles and gift cards," she added. Those wins, she said, are "a great opportunity for us to showcase" the game and "spread the word."

A leader who came up through the numbers

Garrison joined the Lottery in 2011 as an internal audit manager. She moved through accounting, finance, and revenue before taking the top job.

That path shaped her approach:

My background has given me a well-rounded understanding of our business, from the importance of internal controls and financial discipline to the drivers of revenue and growth.

It also taught her to see the whole picture:

Having worked across multiple areas of the organization, I understand how decisions impact the business as a whole.

Her favorite memories come from winners. "The stories we hear from players who win are incredible," she said. One couple who won a few years ago used their prize to open a food truck, "which was their ultimate dream!" Garrison added: "It's so incredible to see what folks can do with these lottery funds and how it truly changes their lives and their families' lives."

Priorities and challenges ahead

Garrison's focus for the coming year is clear:

The key areas of focus for us include acquiring and retaining players and adopting new and creative ways to offer lottery. To continue achieving record results, we must lean into different business models.

The need for scholarships and grants keeps growing, she noted, so "it is our job to be innovative."

The next big challenge is already here. "I think we are already in the thick of new challenges, including increased competition and changing player preferences," she said. Her warning is blunt: "What helped us achieve success years ago will not have the same impact today."

The takeaway? Garrison framed it as a duty:

Our challenge and responsibility is to keep innovating and providing players with what they want so that we can maximize our funds transferred back to the Commonwealth.