Minn. Senate passes bill restricting expansion of State Lottery

May 9, 2015, 7:30 am (11 comments)

Minnesota Lottery

Minnesotans soon may no longer be able to buy lottery tickets at ATMs, gas pumps or online, as the Senate overwhelmingly passed a bill Thursday that would restrict the Minnesota State Lottery's yearslong foray into new gambling platforms.

The decisive 56-8 vote was a rebuke to Gov. Mark Dayton, who vetoed a similar measure last year.

Bill author Sen. Lyle Koenen, DFL-Clara City, and Republican advocates of the bill framed the issue as one of legislative prerogative, accusing the State Lottery of usurping its authority by expanding its gambling offerings without specific legislative approval.

Dayton has supported the State Lottery and lauded its efforts to contribute money to the state general fund and various environment programs, which are expected to be $139 million this year and $2.4 billion since voters approved a state run lottery in 1988.

The governor acknowledged this week he may be forced to live with the new restrictions. Asked about a potential veto, Dayton said "I'll have to decide where to take my stands during the next 10 days."

If the Legislature ends the online, gas pump and ATM purchases, the State Lottery will have to prematurely end contracts with vendors of the programs. Vendors have said that would lead them to seek $12 million in compensatory claims, according to an analysis of the cost of the bill by Minnesota Management and Budget.

"What kind of message does this send to other vendors who in good faith go into contract with the state only to have the Legislature nullify it?" said Sen. Sandy Pappas, DFL-St. Paul, who offered an amendment that would have allowed the State Lottery more time to end the programs.

Senators of both parties were unsympathetic to that argument in the floor debate, saying vendors should have considered the risks of signing contracts lawmakers said were bogus because the Legislature never specifically approved the programs. The amendment failed.

State Lottery Executive Director Ed Van Petten has said that the Lottery needs an online presence and fresh marketing strategies if it is to appeal to new and especially younger customers.

Van Petten testified in committee hearings this year that among calls to the Minnesota problem gambling help line last year, 11 percent said the lottery was their primary gambling problem, while 47 percent said they struggled with casino slot machines. Online buyers are currently prohibited from spending more than $50 per week on state lottery tickets.

Van Petten came to Minnesota in 2012 after the State Lottery's expansion into new buying platforms was well underway. The State Lottery had been submitting reports to the Legislature every year, noting its expansion effort, and Van Petten has promised he would consult the Legislature more closely. Still, Van Petten often has been the source of what appeared to be personal animus from legislators, including in remarks on the Senate floor Thursday.

A powerful coalition of gambling opponents has rallied against the lottery expansion, including the Joint Religious Legislative Coalition and Citizens Against Gambling Expansion, pointing to research showing poor people are the biggest consumers of lottery tickets. The strong anti-gambling movement contrasts with most other states, where legalized gambling has been spreading for about a quarter century.

Dayton maintains there's another powerful player in that coalition against lottery expansion, though he doesn't mention them by name: Indian gambling interests. "I think it's unfortunate that people who have a vested interest in the status quo are getting together to fight very fiercely to protect that lucrative economic interest," he said this week.

House Speaker Kurt Daudt, R-Crown, said Thursday that the House will take up the Senate bill and follow the Senate's lead, should the need for an override of a gubernatorial veto arise.

StarTribune

Comments

music*'s avatarmusic*

Smile The Minnesota State Legislature must believe they are doing what the people want.  Each State experiment's with gambling in their own way.  No heavy federal hand is needed here.

  I remember viewing a couple win the Lottery in Minnesota and they turned the ticket in the next day. They were short on sleep . I guess that they were making do with coffee. They seemed to enjoy the public interview.

 Paul White is a recent winner in Minnesota.  His interview with the media was hilarious and very entertaining. Paul said that he had planned out over the past many years what he would do when he won.

  Party

music*'s avatarmusic*

 I just found the names of the couple... Tom and Kathleen Morris of Burnsville,MN

mypiemaster's avatarmypiemaster

Freaking politicians should keep their hands out of our pockets.......

Are you telling me that if I WIN A JACKPOT and make a $1M donation to some of these "gambling orgs.", they will say NO to the donation?.

Todd's avatarTodd

Quote: Originally posted by music* on May 9, 2015

 I just found the names of the couple... Tom and Kathleen Morris of Burnsville,MN

music*'s avatarmusic*

Thank You Todd for the lottery post site. I just watched the video which is included in the news article.  I enjoyed reading everyone's posts again with fresh eyes.  RidgeRunner, rdgrnr, makes a lot of funny comments.

itpmguru's avataritpmguru

"Minnesotans soon may no longer be able to buy lottery tickets at ATMs, gas pumps or online, as the Senate overwhelmingly passed a bill Thursday that would restrict the Minnesota State Lottery's years long foray into new gambling platforms."

They are trying to "expand" to these same venue's in NC, but when the numbers coming out are not "Natural" (insert your own version here), it just means there is yet another way for them to take money from your pocket in yet another act of political greed.  LET state lotteries be what they have been for many years and stop them from trying to figure out a way for gov't benefited entities to take more $$ out of our pockets and put it into theirs!

How in the H#LL can they say they "Help" problem gamblers when they shove it in your face at every turn now including a friggin' ATM and gas pump.  Come on, it is just another tax!!

ITP

itpmguru's avataritpmguru

PS- 
What ever happened to "The separation of church and state"  - Not happening anymore!
I know about he "Indian gaming industry" spoke of in this article, they will NEVER allow anything to bite into even .01 cents of their profits! They will spend $10 on every $1 now to ensure this will NEVER happen!

myturn's avatarmyturn

Minnesotans can play a lottery by subscription, the Massachusetts Megabucks Doubler game is available across the US.

Coin Toss's avatarCoin Toss

tpmguru,

"How in the H#LL can they say they "Help" problem gamblers when they shove it in your face at every turn now including a friggin' ATM and gas pump.

I have to agree with you there. That's the equivalent of offering a drink to an alcoholic.

Stack47

The decisive 56-8 vote was a rebuke to Gov. Mark Dayton, who vetoed a similar measure last year.

This bill is for nothing more than testing the Governor's political power.

A powerful coalition of gambling opponents has rallied against the lottery expansion, including the Joint Religious Legislative Coalition and Citizens Against Gambling Expansion, pointing to research showing poor people are the biggest consumers of lottery tickets. 

But how did they get data proving "poor people are the biggest consumers of lottery tickets"? I've bought lottery tickets in several states and not once asked my yearly income.

Stack47

Quote: Originally posted by myturn on May 10, 2015

Minnesotans can play a lottery by subscription, the Massachusetts Megabucks Doubler game is available across the US.

How much are they paying you to advertise this game?

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