Massachusetts Lottery to Begin Online Sales Following Governor Healey's Approval

After years of anticipation and discussion, the Massachusetts State Lottery is poised to enter the digital age. Governor Maura Healey signed the 2025 state budget into law, which includes a provision authorizing online lottery sales. This move, expected to generate millions for early childhood education and care, marks a significant milestone in the state’s gambling landscape.

The Journey to Online Lottery Approval

The journey to this point has been a long one. For years, there have been talks on Beacon Hill about bringing the Massachusetts State Lottery online, but progress was slow. Advocates of the so-called “iLottery” argued that internet-based lottery games were crucial for attracting younger, tech-savvy players. As online sports betting gained popularity, the pressure to modernize the lottery grew.

Despite the growing , there were also significant concerns. Critics, particularly retailer trade groups, worried about the potential impact on brick-and-mortar stores that rely on lottery ticket sales. These concerns contributed to the delays in implementing online lottery sales.

Governor Healey’s g of the nearly $58 billion state budget on Monday finally brought the discussions to a head. The budget includes a section authorizing online lottery games, with the goal of raising funds to a grant program for early childhood education and care. This legislative breakthrough is expected to transform the Massachusetts State Lottery, enabling it to compete more effectively in a digital world.

With the budget signed, the Massachusetts State Lottery Commission is now tasked with finding an operator for the online system. Executive Director Mark Bracken has indicated that the launch of the online platform is anticipated to take approximately 16 months, setting the expected launch date for late 2025.

This new online platform will offer both traditional draw games and einstant games. These einstant games, similar to online slot machines, include titles from many of the same manufacturers that create popular online slots. Some of these games even feature progressive jackpots, adding to their appeal.

Enhancing Educational Funding

One of the most significant aspects of the new online lottery is its potential to generate additional revenue for the state. In accordance with state law, the money raised from online lottery ticket sales will be used to early childhood education and care programs. This additional funding is crucial for providing grants that help the state’s most vulnerable children.

Since its inception in 1972, the Massachusetts State Lottery has generated over $155 billion in revenue from its land-based operations. The addition of online sales is expected to bring in an extra $100 million per year, providing a substantial boost to the state’s educational funding.

A critical concern for the Massachusetts State Lottery Commission is ensuring that the introduction of online lottery sales does not negatively impact traditional retail sales. According to Christian Teja, the commission’s director of communications, states that have already implemented iLottery have seen retail sales continue to grow. This data suggests that online and retail lottery sales can coexist and even complement each other.

To further this balance, the Massachusetts Lottery plans to implement a rewards system where online players can earn rewards redeemable only at in-store partners. This initiative aims to drive traffic to brick-and-mortar stores, ensuring that they continue to benefit from lottery sales.

Ensuring Player Protection

Another priority for the Massachusetts State Lottery is player protection. The new online platform will include robust measures to promote responsible gambling. Players will have the ability to set spending limits, self-exclude, and take breaks from playing. These features are designed to provide a safe and controlled gaming environment.

The move to online lottery sales is the result of years of advocacy and planning. State Treasurer Deborah B. Goldberg has been a vocal proponent of the initiative, emphasizing the need to adapt to changing market conditions and remain competitive. As far back as 2017, Goldberg highlighted the importance of proactive measures to maintain the profitability of the lottery.

The legalization of online sports betting in Massachusetts in 2022 added further urgency to the push for iLottery. Lottery officials have voiced concerns that the growing popularity of online sports betting could threaten traditional lottery revenues. By going online, the Massachusetts Lottery aims to keep pace with its competition and reach newer audiences.

Source:

”The lottery’s going online. Here’s what to know.”, boston.com, July 30, 2024.