Massachusetts State Treasurer Deborah Goldberg is again urging the legislature to authorize online lottery games. Last year she filed such a bill but lawmakers largely ignored it. She’s not giving up.
Goldberg argues that the lottery needs to modernize by attracting more millennials, and that means an online presence, including the ability to buy lottery tickets with Smartphones and tablets. Although Massachusetts has the most profitable state lottery in the country, it is beginning to stagnate, she says. Scratchers, for instance have decreased sales volume by 3 percent from last year, she said.
Goldberg estimates that this fiscal year will bring in revenues of about $965 million, which is $22 million less than last year. She would like to increase that amount by appeal to the younger demographic.
In December, she told lawmakers, “Between the impending arrival of casinos, increasing competition from daily fantasy sports, the overall shift to online versus point-of-sale transactions, and our aging Lottery demographic, we have no choice but to pursue new solutions.” She added, “We must focus on making the lottery more appealing to millennials, while we continue to offer games that our loyal customers know, trust and enjoy.”
Fearing possible competition from online lottery sales, Plainridge Park Casino, the state’s only slots parlor, and currently its only casino of any kind in operation, urges caution. Its general manager, Lance George, told the Sun Chronicle, “It’s very important for the Legislature to be rigorous in its evaluation of any policy change that affects job and revenue creation in industries that operate brick-and-mortar facilities and even more so when those industries are new to the commonwealth.”
Some legislators worry that the state will spend more on beefing up the lottery than the additional revenues will justify.
Rep. Jim Lyons would rather increase add to the 351 municipalities that get state aid by other means. He told the Sentinel Enterprise: “In a $40 billion budget, there are other ways to increase local aid to cities and towns. Why have people who are struggling financially get access to gambling by turning on a computer? That’s not a way to solve our economic problems. He added, “We have to look at how we’re spending our tax dollars.”
“This is assistance that goes right back to the cities and towns,” retorted Rep. Tom Golden. “Online is something we should definitely look at to reach a different demographic, and to continue bolstering municipalities’ bottom line. It should be strongly considered.”
Others, such as Rep. Stephen Howitt, is concerned that the online lottery would hurt brick and mortar vendors, such as convenience stores and gas stations that sell the tickets.
Rep. Shawn Dooley is open to the idea, but with safeguards against fraud and identity theft.
Senator Jennifer Flanagan pushed such a provision last summer and obtained a majority vote in the Senate, but it was later dropped from the final bill. She told the Sentinel Enterprise, “There are people who say, ‘If I could do it on my phone, then I’d participate, but I don’t have time to go to the store or I don’t have cash.’ ” She wants to have another go on the bill this session.
Senator Eileen Donoghue agrees: “This is where the future is headed with the younger generation on their phones,” she said. “At the minimum, we should be embracing a study to see what online would entail.”
On the other hand, Rep. Paul Heroux is totally opposed because he feels it will increase problem gambling. He told the Sun Chronicle: “Online is a bad idea. It is a proposal because the state knows it will make money on this, which makes it borderline predatory.”
