Lottery Game System and Method with Augmented Reality Scratch-Off Lottery Ticket

A method for implementing a virtual and augmented reality scratch-off lottery ticket includes configuring a game server for communication with a player mobile device, the game server receiving real-world location data from the mobile device. A virtual scratch-off lottery ticket is downloaded to the mobile device, wherein the player simulates removal of a scratch-off coating from a plurality of scratch spots on the lottery ticket to reveal underlying game indicia that indicates the outcome of the lottery ticket. Via an application running on the mobile device, the player moves to a geographic location before the simulated removal of the scratch-off coating is enabled on the mobile device. At the geographic location, the game server and running application overlay a virtual objet on a screen image of the location on the mobile device. The application running on the mobile device provides for the player to interact with the virtual object in a manner to acquire the virtual object for later simulated removal of the scratch-off coating from at least one of the scratch spots on the lottery ticket to reveal the underlying game data.