Virginia Lottery launches best-in-class loyalty program

Virginia Lottery set out to modernize loyalty with a first-of-its-kind program spanning digital and in-store play. The result? A scalable, data-driven experience that’s driving deeper engagement and measurable growth.

530k

total loyalty members

72%

active participation rate

1M+

entries for new cash prize drawing

80%

difference in spending decline for loyalty vs. non-loyalty members

“We don’t see Marigold as just a vendor, we view this as a true partnership. Now that our initial phase is complete, we’re excited to lean on them more to keep the program fresh and innovative.”

Prudence Milligan
Senior Customer Strategy Manager, Virginia Lottery

The challenge

As competition tightens and the virtual marketplace expands, including mobile sports betting, the Virginia Lottery set out to safeguard and grow its market share. To do this, they set out to better understand players holistically so they could personalize offers, deepen engagement, and drive more sales.

The strategy

With Marigold, the Virginia Lottery launched Virginia Lottery Rewards, a phased program designed to scale. They started with core loyalty features, then added gamification, interactive challenges, and targeted personalization to engage millions of players both online and in retail.

The results

In just six months, Virginia Lottery Rewards grew to 530,000 members with a 72% active participation rate. The program drove over 1 million prize entries and reduced spending decline among loyalty players to 3% versus 15% for non-members.

The challenge

As competition tightens and the virtual marketplace expands, including mobile sports betting and the possibility of online casinos, the Virginia Lottery set out to safeguard and grow its market share. The Virginia Lottery needed to better understand players holistically to promote and personalize offers and drive more sales.

To meet this moment, Virginia Lottery didn’t just launch a loyalty program. With Marigold Loyalty, they mapped out a scalable, enterprise-grade initiative with the same sophistication seen in more mature industries like retail and travel, built to serve millions of players both online and in-store.

With Marigold, Virginia Lottery built a rewards program to:

  • Better understand players by de-anonymizing retail transactions and gaining insight into retail player behavior for the first time.
  • Acquire new players and increase revenue through a structured, multi-phased loyalty program with transactional and non-transactional earning opportunities.
  • Retain players and mitigate declining spend by driving engagement through gamification, interactive challenges, and experiential rewards.
"One key driver for launching a loyalty program was to help us understand who our lottery players are, both online and at retail, an otherwise anonymous channel. Now we can personalize offers and communications more effectively, which has led to a 72% active participation rate and a 2,200% increase in points redeemed within six months." Prudence Milligan, Senior Customer Strategy Manager, Virginia Lottery

The path to success

Because Virginia Lottery wanted to better understand players, increase sales, and drive long-term engagement, a first-of-its-kind loyalty program was born. With Marigold, Virginia Lottery created Virginia Lottery Rewards, an advanced and comprehensive loyalty program in the U.S. lottery industry.

Through a strategic, three-phased rollout, the team introduced core functionality first, then layered in sophisticated features like gamification, experiential rewards, and targeted personalization. These are capabilities rarely seen in lottery programs and impressive even by mature industry standards. The result: more than double the members, a 72% participation rate, all within six months.

Retail player identification and personalization

Virginia Lottery de-anonymized retail players, providing valuable insights to personalize offers and communications. While online players were already known, the ability to collect zero-party data from retail transactions allowed for more targeted engagement and long-term retention strategies.

Interactive engagement and gamification

Leveraging Marigold Grow, Virginia Lottery introduced interactive experiences like challenges, surveys, and punch cards to increase engagement. Monthly drawings and gamification features, including upcoming spin-to-win mechanics, encouraged participation and drove an increase in points redeemed.

Data-driven optimization and A/B testing

Virginia Lottery gained detailed insights into player behavior by collecting zero-party data. This data validated tier structures, tested prize offerings, and optimized engagement. A/B testing showed that cash-based prizes and gift cards drove higher participation than experiential rewards, increasing repeat engagement.

Sustaining player spending and driving sales

Virginia Lottery Rewards members showed stronger retention and more stable spending patterns than non-loyalty players. While non-loyalty participants experienced a 15% drop in spending, loyalty members saw only a 3% decline demonstrating the program’s ability to support revenue and engagement, even amid shifting consumer behavior in the industry.

Results

Marigold Loyalty and Marigold Grow delivered measurable impact by enhancing player engagement, increasing retention, and driving growth. With data-driven personalization and interactive experiences, the program fostered stronger customer connections and long-term loyalty, all within the first six months:

  • 530k total loyalty members
  • 72% active participation rate
  • More than one million entries for new cash prize drawing, 170% increase from launch
  • 80% difference in spending decline for loyalty vs. non-loyalty members
Industry
Government
Marigold products
Additional information

For over 35 years, the Virginia Lottery has provided fun and entertaining gaming experiences while operating responsibly and with integrity. Proceeds from lottery games support K-12 public education, and, with a diverse portfolio of games, VAL continues to innovate by enhancing player engagement and building lasting community connections.