Online, gas-pump and ATM scratch-off lottery ticket sales in Minnesota could no longer be offered by October 30 if Governor Mark Dayton signs legislation that passed the Senate 56-5 and the House 126-2. Dayton has not indicated if he’ll sign the bill or not. The lottery launched the new games in February and although they account for very little of the lottery’s revenue, officials had hoped they would be grow at a time when traditional sales have been leveling off. Last year, the Minnesota lottery generated 5 million for environmental and other state programs.
The bill, which allows online ticket sales to continue, originally was rejected by the House but supported by the Senate, requiring a joint compromise committee to be convened.
State Rep. Steve Drazkowski said, “This bill brings the lottery back into control and reminds it that the laws of the state of the Minnesota are written by the legislature, with the governor’s approval. They’re not written by the executive branch, by agencies or by individuals in those executive branch agencies.” State Rep. Greg Davids added, “Politically, we pinned their ears back. The lottery needs to have some controls, some safeguards.” And state Senator Carla Nelson said launching the online scratch-off games was “overreach by the administration.” The legislation also had the support of convenience store industry that felt the online games would impact sales, as well as tribal casino gambling interests and charities that run pull-tab games.
Still, some representatives said sooner or later the legislature will have to adapt to changing technology. State Rep. Rick Hansen noted, “We’re kind of reactive and going from one end to the other.”
Lottery Director Ed Van Petten consistently claimed the lottery acted within its mandate to expand online and that he kept the governor briefed on the program. Van Petten said he hopes Dayton will veto the bill. “I’d be lying to you if I didn’t say it’d make me happy. I’d like to continue our project,” he said.
If the state cancels the games it could lose about $12 million in lost sales and through a breach-of-contract lawsuit by its online vendor. Pat McHugh, president of lottery software supplier Scientific Games International informed lawmakers the company is prepared to shut down the games but would not rule out a lawsuit. “While still preliminary, we expect our expenses to exceed $4 million. The reasonable profit recoverable as just compensation is still being calculated,” he said.
The lottery still could offer subscription sales for Powerball and Mega Millions, Van Petten said.
