Online Lottery Ban Avoided—For Now

The Minnesota House recently left out of an expanded gambling bill a ban on online ticket sales. State Rep. Joe Atkins said the House budget does not include the costs of shutting down ticket sales. Lawmakers and Lottery Director Ed Van Petten have been at odds over the program, which Van Petten said would attract younger players.

Minnesota state Rep. Joe Atkins recently stopped a proposed ban on Minnesota Lottery online ticket sales from being included in his expanded gambling bill. Atkins said House budget targets do not allow for the cost of shutting down ticket-sales operations. Previously a House committee and the Senate had voted to end the online ticket sales. The issue is certain to be revisited prior to adjournment.

Minnesota Lottery internet ticket sales have been available for four years and online scratch-off tickets were introduced in February. Legislators said Lottery Executive Director Ed Van Petten launched the games without their authority. But Van Petten said he acted under current law and that the online lottery games would attract younger players.

If the online sales end, the state could lose up to $8 million in sales. A large portion of those proceeds help fund park upkeep, wildlife preservation and other environmental projects.

In two months, internet scratch-off games generated $170,000. The online drawing games have generated $3.3 million. About 8,500 players actively play the online games, compared to about 1.2 million Minnesotans who purchase tickets at least once a month. Online players spend $30 a week on average and must pre-register a bank account for wins and losses. Special software verifies their age and residency and caps weekly electronic purchases at $50 per player.

The Minnesota Lottery generates more than $500 million a year in total revenue, with about 60 percent paid out in prizes.