Online Lottery Seemingly A Matter Of When, Not If, In Massachusetts

Is it possible that Massachusetts will soon establish an online lottery platform?

According to Mark William Bracken, the Interim Executive Director of the Massachusetts State Lottery, it appears to be a rational progression. In reality, this particular advancement has been in the works for a considerable period.

In an email to Play MA, Bracken stated that the Mass Lottery has been actively seeking to establish an online lottery for more than ten years.

Online sports betting leads push for online lottery

What is the reason behind the sudden advocacy for an online lottery in Massachusetts? It can be attributed to the recent approval of online sports betting in the state.

The Bay State’s online sports betting industry was launched on March 10, just over a month after the retail sector became active at the end of January. Since then, it has gained popularity among bettors.

Bracken’s objective is to maintain fairness by ensuring equal opportunities. According to him, the emergence of online sports betting presents the greatest challenge for the Lottery thus far, making it crucial to provide a fair chance to compete.

Gov. Maura Healey supports the idea

About a week ago, Gov. Maura Healey of Massachusetts addressed reporters, voicing her apprehension regarding the lottery’s inability to match up with its rivals.

She stated that the state has both casinos and DraftKings, with a significant amount of money being spent on the latter by many individuals. However, she also mentioned that the current lottery system is unable to effectively compete with DraftKings.

DraftKings dominated Massachusetts’ debut month of online sports betting, securing the leading position with a remarkable handle of $257.6 million in March. This impressive figure represents a substantial 47% share of the market.

It is logical that DraftKings is highly popular within the state as it was established in Massachusetts and has its headquarters located in Boston.

Healey stated that she had no personal issues with DraftKings, but she believed that the lottery contributed directly to the financial well-being of cities and towns. On the other hand, the funds spent on DraftKings only benefited DraftKings itself.

Other states with an online lottery

Online lottery services are available in several states, including but not limited to New Hampshire, New Jersey, Pennsylvania, and Virginia.

The state of Massachusetts would benefit from an online lottery, creating a win-win situation. It would enable residents to enjoy their preferred games conveniently from the comfort of their homes.

As the amount of dollars invested in the lottery increases, a greater sum of money is subsequently returned to the state.

How the online lottery could co-exist with online sports betting

The lottery, according to Bracken, has no objection to mobile sports betting. In fact, Bracken stated that the lottery is open to embracing fair and healthy competition.

At present, the state proudly presents a lineup of six sportsbooks: DraftKings, FanDuel, BetMGM, Caesars Sportsbook, WynnBET, and Barstool Sportsbook.

In March, online sports betting claimed the majority share. Massachusetts locals placed bets worth $548.1 million on sports using their mobile devices from March 10-31. As a result, a total revenue of $45.6 million was generated. Consequently, the state of Massachusetts collected just over $9 million in taxes.

Bracken, however, maintains that the sports betting industry would not disrupt an online lottery. He argues that although there may be some overlap in consumer interest, each form of gambling – traditional lottery, iLottery, casino games, fantasy sports, and sports betting – offers unique features that appeal to consumers in distinctive ways, allowing all of them to thrive independently.

Lottery economic impact on Massachusetts

It is undeniable that the Massachusetts State Lottery is a highly profitable venture. During the previous fiscal year, the lottery surpassed a staggering $1 billion in profit.

During FY2022, the lottery disclosed a profit of $1.105 billion, marking the second consecutive year of exceeding the $1 billion profit milestone.

In the House’s 2024 fiscal year budget, Democratic officials in Massachusetts anticipate that revenue from online lottery would exceed $200 million.

Additionally, the proceeds generated from the theoretical internet-based lottery would be directed towards a noble purpose.

Bracken said that the funds generated by iLottery are meant to be utilized for granting early education opportunities and facilitating greater accessibility to child care services for families.

Additionally, he pointed out that the online presence of many states has led to a steady increase in traditional lottery sales. This development is particularly important for Massachusetts as it guarantees that the lottery will remain a dependable means of providing unrestricted local aid to cities and towns.

What’s next?

According to Bracken, the passage of legislation authorizing online lottery is the most crucial obstacle, as conveyed to Play MA.

We are witnessing an unprecedented level of interest in tackling the subject, and the support voiced by Governor Healey and the House of Representatives is truly encouraging.

In March, the combined revenue from MA casinos and sportsbook apps amounted to an impressive $151.6 million.

In case you or someone dear to you is facing challenges with gambling, feel free to reach out to a trained specialist at 1-800-327-5050 or visit www.mahelpline.org/problemgambling. They are available 24/7 and provide assistance without any charges.