The Virginia Lottery is making history with its commitment to minority businesses. The organization plans to spend $43 million with minority-owned firms in 2026. This represents a major shift toward economic inclusion and community support.
Khalid Jones leads this transformation as the lottery’s executive director and CEO. He took the helm in April 2024. Since then, he has prioritized transparency and equitable community engagement. His approach aims to create real opportunities for businesses that have been overlooked.
Record Revenue Fuels Minority Business Investment
The Virginia Lottery achieved record revenue of over $5.7 billion in fiscal 2025. This impressive performance proves the organization has the resources to support community growth. The lottery generates income from instant games, online lottery products, virtual sports, and national jackpots like Powerball and Mega Millions.
All profits totaling $901 million currently support K-12 public education across Virginia. Now, Jones wants to ensure that minority businesses share in this prosperity. His vision connects educational funding with economic opportunity for underserved communities.
$180M Procurement Budget Targets Small and Minority Firms
The lottery expects total procurement spending to reach $180 million by next year. Of that amount, approximately $43 million will go to small, women-owned, and minority (SWaM) businesses. This commitment represents nearly 24% of the lottery’s entire procurement budget.
Jones actively works with local chambers and trade groups to spread awareness. He wants to eliminate knowledge barriers that prevent minority vendors from competing. “I want to make sure that lack of knowledge of opportunity is never an impediment to working with us,” he explained.
The lottery has launched a procurement awareness program specifically for SWaM businesses. This initiative helps vendors understand how to work effectively with the organization. It provides guidance on bidding processes and partnership opportunities.
Breaking Barriers in Digital Gaming Content
The Virginia Lottery operates the largest digital lottery platform in America. However, Jones noticed a troubling gap. Currently, zero Black-led or Black-owned game providers supply content to the lottery.
He is actively working to change this reality. Jones believes diverse voices in game creation can unlock new content possibilities. “I think there is uncovered content we can unlock if we can introduce different voices into the game creation itself,” he said.
This push for diversity in gaming content could transform the industry. It opens doors for Black entrepreneurs in the rapidly growing digital gaming sector. Moreover, it brings fresh perspectives to lottery product development.
Supporting Black Media and Cultural Events
The Virginia Lottery has increased its advertising spending with Black-owned media outlets. The organization now advertises more frequently in publications like the Richmond Free Press. This decision supports Black journalism while reaching diverse audiences.
Additionally, the lottery sponsors major community events such as the Richmond Jazz & Music Festival. These partnerships demonstrate a commitment beyond simple transactions. They show genuine investment in Black cultural institutions and community celebrations.
Jones also maintains strong relationships with historically Black colleges and universities. The lottery partners with Norfolk State University and Virginia State University. Plans are underway to extend these relationships to other HBCUs across the state.
Investing in Future Black Leaders
The lottery supports the Hampton Roads Committee of 200+ Men Scholar’s Breakfast. This annual event celebrates young Black men from seven Hampton Roads cities. Recipients must graduate with a 3.0 GPA or higher.
Jones served as keynote speaker this past year. He was the first lottery director to address the group. “It shows the lottery is committed daily to supporting students, teachers, and school personnel in all parts of Virginia,” he noted.
This commitment aligns perfectly with the lottery’s educational mission. It creates a direct connection between lottery revenue and student success. Furthermore, it provides role models and inspiration for young Black scholars.
Leadership Experience Drives Change
Jones brings over 20 years of experience in lottery, gaming, and sports industries. His background includes work as a partner in a licensing consulting firm. He also served as a lawyer on large-scale government investigations.
This diverse experience shapes his innovative approach to lottery management. Jones has adopted tactics from casual gaming platforms like Candy Crush. He uses these strategies to reimagine how players interact with lottery products.
His agenda focuses on attracting younger audiences and higher-value players. He also implements AI-powered tools to streamline operations. These technological advances improve efficiency while maintaining responsible gaming standards.
Addressing Concerns About Lottery Impact
Research shows that Black Americans spend more on lottery tickets than other groups. This includes both total dollars and percentage of income. Jones acknowledges these concerns directly and honestly.
The Virginia Lottery strongly emphasizes responsible gaming through multiple channels. These include advertising efforts, community events, and direct outreach. Jones urges all players never to gamble beyond their means or budget.
“We understand that the lottery has critics,” Jones said. “As any organization should, we are always committed to listening to ways that we can improve what we do for our players, retailers, and our beneficiaries.”
Creating Sustainable Economic Impact
Jones believes the lottery performs best when it expands opportunities to all communities. His approach avoids exclusivity in favor of broad-based participation. This philosophy drives every initiative and partnership decision.
The $43 million commitment to minority businesses represents more than numbers. It signals a fundamental shift in how the lottery engages with diverse communities. These partnerships create jobs, build wealth, and strengthen local economies.
“My charge is to provide funding to K-12 public education,” Jones explained. “I think that we can do that best when we expand opportunities to all communities and avoid exclusivity.”
His leadership could transform how state lotteries operate nationwide. By prioritizing transparency and equitable engagement, Jones creates a model for other organizations. The Virginia Lottery’s success proves that profitability and community investment can work together.
