System and method for cashless redemption of lottery tickets and incentives for players to spend lottery winnings at specified third-party retail vendors

A system for play of a lottery game that encourages a player to visit and spend winnings from the lottery game at a third-party vendor establishment, the system comprising:

• a plurality of lottery tickets for play of the lottery game having a common prize structure, the lottery tickets comprising indicia thereon that identifies one of a plurality of third-party vendors, winning lottery tickets from the plurality of lottery tickets redeemable by the player for a cash prize;
• a virtual debit card loaded with a value equal to the cash prize of one or more of the winning lottery tickets redeemed by the player;
• wherein the player can purchase goods or services charged against the virtual debit card up to the value of the virtual debit card;
• instructions provided to the player to visit and spend the cash prize loaded on the virtual debit card at the third-party vendor establishment;
• and
• an incentive provided to the player having a value proportional to an amount charged against the virtual debit card at the third-party vendor establishment.