Welcome Guest
Log In | Register )
You last visited December 9, 2016, 5:30 am
All times shown are
Eastern Time (GMT-5:00)

Michigan Lottery puts Internet ticket sales on hold

Michigan LotteryMichigan Lottery: Michigan Lottery puts Internet ticket sales on hold

LANSING, Mich. — The Michigan Lottery is indefinitely halting plans to sell tickets and offer games on the Internet after skeptical lawmakers blocked funding to launch an online lottery in early 2014.

"Plans for an iLottery system have been suspended so that the Lottery may further evaluate the program," lottery spokeswoman Andi Brancato told The Associated Press Tuesday, declining further comment.

Gov. Rick Snyder asked for nearly $3.4 million in the next state budget to implement the iLottery as a way to pump more money into public schools by keeping the lottery relevant for people used to buying products online. The money would have gone toward promotion and hiring the equivalent of 10 full-time workers.

The Republican-led Legislature refused to go along because some legislators worry about increased gambling addiction, personal debt and a potential hit to brick-and-mortar stores currently participating in the lottery.

On June 14, the day the Republican governor signed the budget, the lottery put on hold plans to choose a company to develop and support an online system and games. The winning bidder would have been announced that day, but the evaluation period was extended indefinitely.
The Snyder administration may still be able to create the iLottery after the internal review by spending other money in the lottery budget.

"If they wanted to do it, they still could," said Rep. Kevin Cotter, R-Mount Pleasant, who is pushing for passage of legislation that would explicitly prohibit an online lottery.

Cotter said he has no problem with Lottery Commissioner M. Scott Bowen pursuing the iLottery because his job is to maximize profits.

"Additional revenue is a good thing for the lottery because that funds schools," he said. "My concern is that with iLottery, it would allow them to put all their games online. My biggest concerns are with scratch-off games as well as Club Keno. Both of those games online would be very transactional, like a slot machine, one game after another."

Cotter said he is less concerned with people buying Powerball or Daily 4 tickets online because he sees that as more a matter of convenience.

"This is really state-sponsored, wherever-you-are gambling. People could be at work, could be at home," he said. "They could be gambling away the home they're sitting in. State government shouldn't be blazing the trail on this."

Lottery officials have said concerns about gambling addiction and racking up debt on a credit card are overblown because the technology of the Internet could restrict how much people play. Players could pre-authorize the lottery to cut them off once they hit caps on spending.

The Snyder administration sees the Internet as a new frontier for lottery business thanks to a U.S. Justice Department opinion released years ago that says states can offer Internet gambling as long as it does not involve wagering on sports.

Illinois and Georgia sell lottery tickets online. Other states are exploring it.

If the Michigan Lottery expands to the Internet, it could deposit nearly $8 million more to education in year one, according to lottery estimates. That is peanuts considering the school aid fund received a record $780 million in lottery profits last fiscal year. But in an indicator of the potential for growth, profits could grow $471 million in the following seven years.


We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

4 comments. Last comment 3 years ago by jamella724.
Page 1 of 1
ressuccess's avatar - Lottery-043.jpg

United States
Member #93164
June 23, 2010
1325 Posts
Posted: June 27, 2013, 12:31 pm - IP Logged

That's a good thing for right now, but I didn't know why Michigan have ticket sales on the internet later in the future?

    RedStang's avatar - tallman zps6gf4inoc.jpg
    United States
    Member #121961
    January 21, 2012
    3157 Posts
    Posted: June 27, 2013, 2:25 pm - IP Logged

    "This is really state-sponsored, wherever-you-are gambling.

    If i was Governor i would build "All in One" ATM and Lotto machines and put them everywhere. 

      United States
      Member #32652
      February 14, 2006
      7314 Posts
      Posted: June 27, 2013, 9:24 pm - IP Logged

      The lottery employees got incentive bonuses mostly from Club Keno and that game must be included with their online play to get the expected profits online play might generate. Other than for player convenience, I don't see how selling tickets for the regular games online will increase profits that much.

      Online wagering is just starting so they'll probably wait and see which other types of online wagering other state/jurisdictions offer and the effect on sales.

        United States
        Member #132455
        September 4, 2012
        483 Posts
        Posted: July 14, 2013, 1:19 am - IP Logged

        This is one of the social issues that needs to be addressed. Online lottery is very convenient to players, they dont have to go out because they can play anywhere. It's very accessible that it will be hard to monitor gambling addiction and high personal debt. In addition if minors are able to access their parent's credit card they could also play. I hope they can develop a system that will prevent all of these.