It was good news for the Massachusetts Lottery at the end of last week, as the state’s Joint Committee on Consumer Protection and Professional Licensure approved the advancement of S.151. This bill, proposed by Senator Jennifer Flanagan, would allow the state lottery to offer local residents online and mobile products.
The committee was convinced by arguments put forth by lottery management that in order to maintain a competitive edge and to increase revenues which are so essential to the state, the Massachusetts Lottery has to be able to bring its products online.
Lawmakers thus approved Flanagan’s S.151, which will now advance to the legal channels.
Speaking in support of the bill, the co-chair of the Joint Committee on Consumer Protection and Professional Licensure, Senator Barbara Litalien said: “Since millennials and other younger players have grown up with access to technology at their fingertips, they are less likely to purchase lottery tickets in the traditional marketplace and we need to find an alternative way to engage them.”
Litalien said that the state was highly reliant on lottery revenues for local aid, and in order to sustain the high revenues to which the state has become accustomed from the lottery’s contribution, there was an urgent need to diversify the offerings and to engage younger players.
Opposition to online lottery products comes, not surprisingly, from convenience store owners who feel that online and mobile products will have a significantly detrimental effect on their businesses.
The committee made some changes to Flanagan’s original proposal and the bill was given the green light with these amendments attached. One of these amendments addresses the concerns expressed by the convenience stores, and a provision was included that allows player to purchase online game cards from retailers, which could be used to add funds to an online lottery account.
Other amendments include limits on how much players are allowed to deposit online for lottery products on a daily, weekly and monthly basis. Any winnings between $200 and $599 will need to be claimed in person by the winner at a retailer, while winnings of over $600 will need to be picked up at the Massachusetts Lottery offices.
Another amendment prohibits lottery players from using credit or debit cards when they buy their tickets at physical retailers such as convenience stores.
Suggestions have also been made for the lottery to enter the daily fantasy sports industry.
