Online Lottery Push Faces Strong Opposition

Retailers and casinos find themselves on the same side when it comes to fighting online lottery ticket sales.

April 27, 2012

ALBANY, N.Y. - States pressing to launch online lottery ticket sales have hit brick walls as retailers and casinos ramp up opposition, the Wall Street Journal reports. In New York, the director of the state lottery had initially expressed optimism that the online lottery ticket sales would happen soon, but pushback from the New York Association of Convenience Stores (NYACS) has stalled that plan.

Read "You Can€™t Win" in the April issue of NACS
Magazine
for more coverage of online lottery sales.

"We're very uncomfortable with the idea of our customers being able to access lottery games online," said Jim Calvin, NYACS president. The association received indication that the governor€™s office would study the issue further before going forward.

When Illinois launched the nation€™s first online lottery in late March, state lotteries around the country have closely followed the results. Delaware lawmakers will soon debate a bill that would let the lottery also run Internet slot-machine games and blackjack as well as sell lottery tickets.

"If you stand still, you'll lose ground in this fast-paced industry," said Vernon Kirk, who directs the lottery in Delaware, of the need for fresh revenue sources. "The world is going to be in cyberspace. You need to get out there."

But convenience stores and other retailers count on lottery sales to bring in traffic, with lottery customers spending $10.35 in purchases on average, compared with $6.29 for a non-lottery shopper, according to NACS.

"The retailers are very important to us," said Gordon Medenica, New York€™s lottery director. "We need to make sure that if we move forward it will not hurt their business."

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