14 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2026 Sales of the first Iowa Lottery tickets began in 1985 with a kickoff celebration at the Iowa State Fair. Forty years later, state fairgoers broke the Guinness World Record for the most people — 1,380 — to scratch lottery cards simultaneously, demonstrating the lottery’s journey from $1 scratch tickets to a multibilliondollar enterprise. Since its launch was approved by the state Legislature and signed into law by then-Gov. Terry Branstad, the lottery has generated $10.4 billion in sales and paid out $6.1 billion in prizes. Lottery revenues support many state programs, returning $2.5 billion to the general fund and $42 million to the Iowa Veterans Trust Fund since inception. Players have won as much as $343.9 million, and redeemed 189 tickets worth $1 million or more since the game’s inception. Players who win $250,000 or more redeem them at the Iowa Lottery’s headquarters in Clive. Smaller prizes between $600 and $250,000 are redeemed at the lottery’s regional offices in Cedar Rapids, Mason City and Storm Lake, while prizes of $600 or less are redeemed at retailers. “We’re very fortunate to see a lot of people on their best day. There aren’t a lot of people who get to do that in their day-to-day jobs,” said Matt Strawn, who became the organization’s third CEO in 2019. The lottery’s first CEO was Edward Stanek and second was Terry Rich. Today, the Iowa Lottery functions as a statewide organization with tightly controlled security and logistics with 108 employees and 2,500 retail partners. The lottery brings in about $500 million in revenue annually and functions as part of the Iowa Department of Revenue. It’s overseen by a commission and reviewed annually by the state auditor’s office. Iowa State Auditor Rob Sand said reviewing state agency data, such as payroll records, helps prevent potential problems. “When people know the auditor is coming and people know the auditor can look at what’s going on, that not only helps catch problems, but helps prevent them,” Sand said. Most of the lottery’s profits go to the state’s general fund to help pay for education, natural resources protection, health services, public safety needs and more. The first $2.5 million goes directly to the Iowa Veterans Trust Fund, which helps veterans pay for needed services. “It’s one of the quietest half-a-billion-dollar annual revenue enterprises in the state,” said Strawn, who grew up on his family’s farm in Benton County and has worked in many roles throughout the years. He spent 10 years on Capitol Hill, served as chairman of the Republican Party of Iowa, was co-owner of the Iowa Barnstormers Arena Football League team and an entrepreneur. “It’s a little more indirect,” he added, “but if you think of all the things that get funded by the Legislature that ultimately start with an Iowan purchasing a lottery product, I think about that value proposition when the state decided to have its lottery 40 years ago in 1985.” IOWA LOTTERY AT 40: SCRATCHING OFF $6.1B IN PRIZES SINCE 1985 Re-printed from The Iowa Business Journal By Gigi Wood, Nov 21, 2025
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