Colorado Lottery

What Colorado Lottery does

The Colorado Lottery is a state government agency operating under the Colorado Department of Revenue, established in the early 1980s to generate revenue for Colorado's parks, trails, recreation, and conservation programs. It serves adult Colorado residents and visitors (18+) through a portfolio of draw games — including multi-state jackpots Powerball, Mega Millions, and Millionaire for Life, plus state-specific Colorado Lotto+, Cash 5, and Pick 3 — alongside instant-win Scratch tickets ranging from $1 to $30+ and digital free-to-play games. Underlying technology centers on draw management systems with 364-day operation, video/audio surveillance, and random number generators with statistical validation; the consumer-facing stack includes the MyLottery mobile app with barcode scanning, the CO Connected Play platform for digital prize claims up to $5,000, and a newly launched direct-to-consumer online sales channel with credit card acceptance (effective November 2025).

The business model is transaction-based: approximately 50% of ticket sales are returned as prizes, with the remainder funding state programs, retailer commissions (7% Scratch, 6% Jackpot), and operating costs. Distribution runs through over 3,000 licensed retail locations — convenience stores, supermarkets, gas stations, liquor stores — augmented by self-service vending machines, lottery claim centers, and the digital/mobile channels. Retailers earn performance bonuses ranging from $200 to $50,000 on top-prize sales and are subject to annual licensing ($21), bonding ($40), and communications ($5/week) fees. Marketing is multi-channel, including owned website, social platforms, email newsletters, retail POS materials, and a three-year contract with media agency Cactus. To date the lottery has transferred more than $4.6 billion to Colorado's outdoor recreation and conservation programs.

Name

Colorado Lottery

Legal name

Colorado Lottery

Website

https://coloradolottery.com

Company type

Private

Founded year

1980

Operating status

Operating

Headcount range

101–250 employees

Short description

The Colorado Lottery is a state agency under the Colorado Department of Revenue that sells draw games (Powerball, Mega Millions, Colorado Lotto+, Cash 5, Pick 3) and Scratch tickets to adult residents and visitors through 3,000+ licensed retailers and a newly launched online/mobile channel, with proceeds funding state parks and recreation programs.

Ownership category

akta.pro rank

Product category

State Lottery

NAICS

Gambling Industries (7132), Other Gambling Industries (713290)

SIC

Services-Amusement & Recreation Services (7900), Services-Miscellaneous Amusement & Recreation (7990)

akta.pro primary industry

Lottery Operators (Government & Private Licensed) (MPAEAFAA)

akta.pro secondary industries

Digital Lottery & iLottery Platforms (Web/App) (MPAEAFAD), Lottery Second-Chance, Loyalty & Rewards Platforms (MPAEAFAM), Lottery Data, Analytics & Responsible Gaming Tools (MPAEAFAJ)

Keywords

• State lottery games
• Instant scratch tickets
• Draw games
• Multi-state jackpots
• Lottery retail network

Headquarters

HQ city

Pueblo

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Marketing or Sales, Personnel, Technology or R&D, Infrastructure

Revenue model

1. Lottery Ticket Sales: Colorado Lottery generates revenue through the sale of lottery tickets including Powerball, Mega Millions, Millionaire for Life, Colorado Lotto+, Cash 5, Pick 3, and Scratch games. Prizes represent approximately 50% of sales.
2. Retailer Commissions: Retailers earn 7% commission on Scratch games and 6% on Jackpot games. Additional bonuses range from $200 to $50,000 for selling top prizes. Performance bonuses available for meeting sales goals.
3. Direct Digital Sales: New direct-to-consumer online and mobile channel for lottery ticket sales, with credit card purchases enabled in November 2025, generating revenue through ticket sales with 4% credit card processing fees.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels10 records

Core offering

Colorado Lottery sells lottery game entries to adults age 18 and older, including multi-state jackpot draw games (Powerball, Mega Millions, Millionaire for Life), Colorado-specific draw games (Colorado Lotto+, Cash 5, Pick 3), and instant-win Scratch tickets priced from $1 to over $50. Sales occur through 3,000+ licensed retailers and (since November 2025) online and mobile channels, with prizes funded at roughly 50% of sales and proceeds directed to Colorado's parks, trails, pools, and recreation programs.

Product overview

Colorado Lottery operates a comprehensive lottery platform offering multiple game types: multi-state jackpot games (Powerball, Mega Millions, Millionaire for Life), state-specific draw games (Colorado Lotto+, Cash 5, Pick 3), instant-win Scratch tickets, and digital Free Play Zone games. The ecosystem includes a MyLottery loyalty program with mobile app integration for ticket scanning and bonus draw entries, plus various player tools (Winning History, Popular Numbers, Who's Winning) and retailer support through Schafer Retail Solutions+ for modernized ticket dispensers. The platform recently expanded to include direct-to-consumer online and credit card sales.

Differentiator

Problem solved

Functional benefit

Brands

• MyLottery: Loyalty program offering custom game alerts, easy bonus draw entries, exclusive events, contests, and insider news.
• Starburst Awards
• RAISE (Retailer Award Incentive for Sales Excellence)
• Free Play Zone

Products and services

• Powerball Multi-state jackpot draw game where players choose 5 numbers from 69 and 1 Powerball number from 26 for a chance at an annuitized jackpot. Draws are held Monday, Wednesday, and Saturday. Tickets cost $2 per line, with optional $1 add-ons (Power Play, Double Play). Overall odds of winning any prize are 1 in 24.9; jackpot odds are 1 in 292 million. Open to adults age 18 and older.
• Mega Millions Multi-state jackpot draw game where players choose 5 numbers from 70 and 1 Mega Ball number from 24 for a chance at a starting $20 million jackpot. Draws are held Tuesday and Friday. Tickets cost $5 per line. Overall odds of winning any prize are 1 in 23; jackpot odds are 1 in 290 million. Open to adults age 18 and older.
• Millionaire for Life Multi-state draw game where players choose 5 numbers from 58 and 1 Millionaire Ball from 5 for a chance to win $1,000,000 a year for life (grand prize) or $100,000 a year for life (second prize). Draws occur daily. Estimated cash value of the grand prize is $18 million. Overall odds of winning any prize are 1 in 8.5. Open to adults age 18 and older.
• Colorado Lotto+ Colorado-specific draw game where players choose 6 numbers from 40 for a chance at a jackpot starting at $1 million. Optional Plus add-on ($1 per line) provides entry into a second drawing with prizes up to $250,000. Overall odds of winning any prize are 1 in 30; jackpot odds are 1 in 3.84 million. Open to adults age 18 and older.
• Cash 5 Daily draw game where players choose 5 numbers from 32 for a chance at a top prize of $20,000. Optional EZ Match add-on ($1) provides instant win opportunities up to $500. Tickets cost $1 per line. Overall odds of winning any prize are 1 in 6; jackpot odds are 1 in 201,376. Open to adults age 18 and older.
• Pick 3 Daily draw game with midday and evening draws where players choose 3 numbers between 0 and 9. Supports multiple bet types (Exact, Any, Exact & Any, Front Pair, Back Pair) with wagers from $0.50 to $5.00 per play. Top prize is $2,500. Open to adults age 18 and older.
• Scratch Games Instant-win Scratch lottery tickets available at retail locations and (since November 2025) online/mobile channels. Offered at multiple price points from $1 to $50+, each with its own prize structure. Certain games include Bonus Draw eligibility for second-chance entries. Open to adults age 18 and older.
• Free Play Zone Digital free-to-play lottery-style games available through the Colorado Lottery platform that allow players to experience lottery-style play without purchasing tickets.
• MyLottery Free loyalty program offering custom game alerts, easy bonus draw entries, exclusive events and contests, insider news, and barcode-based ticket scanning via the Colorado Lottery Mobile App. Members receive advance notice about new games and specially planned events.

Quantifiable outcome

• Over $4.6 billion invested in Colorado supporting trails, parks, pools and recreation

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Four partnerships are on record, tiered core and minor.

• Schafer Retail Solutions+ (Pollard Banknote subsidiary)coreTechnology or Integration · 1 December 2025SRS+ has been awarded a contract by the Colorado Lottery to supply lottery ticket dispensers and related merchandise, starting January 2026. The partnership includes digital menu boards that previously increased sales by 17%. The goal is to modernize Colorado Lottery retail outlets and enhance product visibility.
• CactuscoreGTM or Marketing Partner · 15 October 2025Cactus serves as both creative and media agency of record for the Colorado Lottery. The three-year contract was awarded after a competitive pitch and aims to enhance the lottery's advertising efficiency and reach. Cactus also serves Hoosier and NC Education Lotteries.
• IGT (International Game Technology)coreTechnology or IntegrationIGT holds jackpot online gaming contracts with the Colorado Lottery. Multiple contract amendments (9+) have been documented, indicating an ongoing and evolving technology partnership for online gaming platforms.
• VentusminorChannel Partner/ Reseller/ DistributorVentus appears as the commission classification type for many retailers in the Colorado Lottery network, suggesting a technology or distribution partner for retail operations.

Scale indicators2 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Hoosier Lottery: Indiana's state-operated lottery running an analogous mix of multi-state draw games (Powerball, Mega Millions) and state-specific draw and Scratch games. Direct peer in product mix, regulatory model, and D2C digital strategy; also shares the Cactus creative/media agency relationship.
• North Carolina Education Lottery: North Carolina's state-operated lottery with a nearly identical product portfolio (Powerball, Mega Millions, state draw games, Scratch) and shared Cactus agency relationship. Directly comparable on regulatory structure, retail network, and digital roadmap.
• Texas Lottery: Texas Lottery Commission operates the largest U.S. state lottery by sales, offering the same multi-state draw games plus Texas-specific draw and Scratch games. Comparable on product breadth, retail scale, and monopoly regulatory structure.
• California State Lottery: California Lottery operates SuperLotto Plus, Scratch, and multi-state draw games across one of the largest U.S. state retail footprints. Closely comparable on product lineup and regulatory monopoly model; relevant scale benchmark.
• New York Lottery: New York State Gaming Commission operates the New York Lottery with Powerball, Mega Millions, Take 5, and Scratch games plus a digital subscription offering. Comparable on regulatory structure and product mix; useful for iLottery feature benchmarking.
• Pennsylvania Lottery: Pennsylvania Lottery is among the most advanced U.S. state lotteries in iLottery/digital sales and offers a similar mix of draw and instant games. Best-in-class digital peer; closely comparable on product and D2C online strategy.
• Michigan Lottery: Michigan Lottery operates draw, Scratch, and online games including iLottery. Comparable regulatory structure with a more mature digital channel; useful proxy for digital sales trajectory and player engagement benchmarks.

Others

• IGT (International Game Technology): Long-standing technology partner to Colorado Lottery (online gaming platform, 9+ contract amendments). IGT supplies systems, draw management, and iLottery platforms to most U.S. state lotteries; comparable on the underlying operating technology stack rather than as a direct competitor.
• Pollard Banknote: Parent of Schafer Retail Solutions+, which just secured the Colorado Lottery retail dispenser and digital menu board contract. Pollard Banknote is a leading supplier of instant tickets and lottery retail technology across U.S. and Canadian lotteries; comparable as an ecosystem/enabler rather than a competitor.
• Scientific Games: Major supplier of instant Scratch tickets, draw systems, and retail technology to U.S. state lotteries. Comparable as an ecosystem vendor to Colorado Lottery's peers rather than a direct product competitor.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/ColoLottery
• YouTubeyoutube.com/user/ColoradoLottery
• Facebookfacebook.com/103652885944
• Instagraminstagram.com/coloradolottery

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Colorado Lottery