Lawmakers Struggle With Eliminating E-Lottery Sales

Closing the lottery’s online sales would affect $8 million in revenues and costs.

April 24, 2014

ST. PAUL, Minn. – While bipartisan legislation making its way through the Minnesota Legislature would shut down virtual sales of Minnesota Lottery tickets, lawmakers are struggling to find a replacement for up to $8 million in lost revenue and costs, the Star Tribune reports.

Legislators were informed earlier this week that shutting down online sales could deprive the state of revenue that pays for park upkeep, wildlife preservation and other local projects, as well as leave a hole in the state’s general treasury.

The $8 million figure is attributable to lost sales and to breached vendor contracts, an inevitable occurrence from halting online games mid-contract. Lottery officials have received stiff opposition to their recent launch of virtual scratch-off tickets.

“The lottery is way out of bounds here and we have to rein them in and tell them how it's going to be,” said state Rep. Greg Davids.

Lottery Director Ed Van Petten has insisted that his agency had authority to create online sales and that they are essential, as retail sales from stores have tapered.

"We are using this technology to evolve," Van Petten told the House Taxes Committee. "The retail environment has to evolve.”

A companion bill awaits a vote on the Senate floor after clearing committees. Governor Mark Dayton has not indicated his position.

Advertisement
Advertisement
Advertisement