Online Lottery Sales Proposal Sinks in Maryland

The State Lottery Agency lost its funding to shift sales to the Internet.

April 18, 2012

ANNAPOLIS, Md. - Maryland lawmakers scratched funding for the State Lottery Agency to move lottery ticket sales online, a move that pleased convenience stores and other locations that sold tickets, Gazette.net reports. This marks the second time online lottery sales have hit a snag.

The agency will now use some of its budget to develop a platform and structure for online sales in order to try to secure funding next fiscal year. Gov. Martin O??Malley had earmarked more than $600,000 in his budget to set up an online lottery system. Malley estimated online ticket sales would have generated $2.2 million during fiscal year 2013.
"Lottery is a great traffic driver," said Jeff Lenard, NACS spokesman. "It gets people into stores and it gets people to buy one or two more items." NACS is against online lottery sales.
Lottery retailers are also key tax collectors for the states, revenue that topped $162 billion for alcohol, cigarettes, gasoline and other items sold in 2011. Lenard also pointed out that buying tickets in person adds to the excitement of the lottery, such as the long lines inspired by the March 30 Mega Millions jackpot drawing for $656 million.
"Ordering online, you lose some of that excitement we saw in stores," he said. "I have not been able to verify yet, but the two days before the Mega Millions drawing were probably the two busiest days in convenience store history."
Last year, lawmakers held up part of the State Lottery Agency??s budget until a report about what federal and state laws relate to online sales and how such a move would impact retail sales. Thus far, Illinois is the first state to approve online lottery sales.

For more on online lottery, read "You Can??t Win" in NACS Magazine.

Advertisement
Advertisement
Advertisement