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Michigan to launch online lottery games late next year

Michigan LotteryMichigan Lottery: Michigan to launch online lottery games late next year
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LANSING, Mich. — Michigan will sell lottery tickets and offer games online in a year's time after two companies were chosen Monday to run an "iLottery" billed as a way to help fund public schools and keep the lottery relevant.

The decision came five months after lottery officials indefinitely halted their plans because lawmakers rejected Gov. Rick Snyder's funding request to launch the online lottery. Legislators, however, did not prohibit the Lottery Bureau from spending existing money in its budget to offer Internet tickets and games on computers and mobile devices.

Michigan will become the third state with an iLottery since the U.S. Justice Department released an opinion nearly two years ago saying states can offer Internet gambling as long as it does not involving wagering on sports. Michigan's is scheduled to start in the fourth quarter of 2014.

"In today's society, more and more customers want to do business online and that includes lottery players," Chief Deputy Commissioner Tom Weber said in a written statement. He said the plan will keep the lottery up to date and boost funding for schools, which receive lottery profits.

Michigan could deposit nearly $120 million more to education in the first four years with the iLottery, according to estimates. In an indicator of the potential for growth, profits could grow $360 million in the following four years.

Snyder asked for nearly $3.4 million in the current budget to promote the iLottery and hire the equivalent of 10 full-time workers. But the Republican-led Legislature refused to go along because some legislators worried about increased gambling addiction, personal debt and a potential hit to brick-and-mortar stores participating in the lottery.

Rep. Kevin Cotter, a Mount Pleasant Republican who is pushing legislation that would explicitly prohibit an online lottery, could not be reached for comment late Monday.

Lottery officials say concerns are overblown because players will have to verify their age and identity, adhere to daily spending limits, and be allowed to set lower spending limits or exclude themselves entirely from the Internet lottery. Officials also promise to safeguard players' financial information and privacy.

Pollard Banknote Limited of Canada and NeoGames of Malta won the expected contract valued at an estimated $23 million in the first four years. Pollard, which has a lottery ticket printing plant in Ypsilanti that employs more than 200 people, pledged to open a customer call center in Michigan if awarded the contract.

How much the companies are paid will depend on Internet sales.

"They need to perform and help us make this work for our players. If they don't, they've got money at risk," lottery spokesman Jeff Holyfield said.

Two of five proposals from private vendors were disqualified. The proposal from Pollard and NeoGames scored the best overall and offered the lowest price, beating out plans submitted by GTech and Scientific Games. The competitors have five days to challenge the decision, after which the state will begin contract negotiations before submitting a deal to a state board for final approval.

Illinois and Georgia already have iLotteries. States such as New York and Minnesota have subscription ticket sales over the Internet.

Detroit Free Press

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11 comments. Last comment 3 years ago by jamella724.
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addai1516's avatar - lib
Newyork City NY / westland michigan
United States
Member #93153
June 23, 2010
4087 Posts
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Posted: November 26, 2013, 8:08 am - IP Logged

We ar� loosing every day online gamblin ? Am staying as far away i can from the cheats LOL .. its more addiction am not willing to indulge .!!

< God bless all  ,family, love, happiness > 

    myeyes2020's avatar - phant
    toledo, ohio
    United States
    Member #108829
    March 31, 2011
    63 Posts
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    Posted: November 26, 2013, 9:06 am - IP Logged

    i am very happy and will be ready the first day

    keep campaigning you will get elected

      RedStang's avatar - tallman zps6gf4inoc.jpg
      NY
      United States
      Member #121961
      January 21, 2012
      3157 Posts
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      Posted: November 26, 2013, 9:12 am - IP Logged

      Their lucky they did'nt hire Obama's team to run this.

        charmed7's avatar - Lottery-013.jpg
        MICHIGAN
        United States
        Member #65282
        September 22, 2008
        1992 Posts
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        Posted: November 26, 2013, 10:03 am - IP Logged

        I'll take my chances at the store.

        LIVE the LIFE you LOVE......LOVE the LIFE you LIVE

        Bob MarleyCheers

          Goteki54's avatar - Lottery-007.jpg
          Baltimore, MD
          United States
          Member #143332
          May 30, 2013
          398 Posts
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          Posted: November 26, 2013, 10:55 am - IP Logged

          I don't know what they seriously expect from doing this. It can't be that they are expecting more revnue, becauwe there aren't going to be any. This will only help to cannibalized traditional ticket sales if anything. If they ever offered an Ilottery here in Maryland, I wouldn't touch it with a one hundred foot pole. The great thing about the lottery the way it is is the anticipation leading up the drawing. It's also much easier to establish a ticket budget and stick to it. I just see the ilottery as a generator of compulsive instant gradification players.

          Following the trends and patterns means following the money!Banana

            helpmewin's avatar - dandy
            u$a
            United States
            Member #106665
            February 22, 2011
            19843 Posts
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            Posted: November 26, 2013, 11:46 am - IP Logged

            Congratulation Michigan Hurray!Motivation is what gets you started, Habit is what keeps you going.Thumbs Up

            Let it Snow Snowman

              Slick Nick's avatar - Lottery-035.jpg
              Rochester
              United States
              Member #103282
              January 1, 2011
              603 Posts
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              Posted: November 26, 2013, 4:58 pm - IP Logged

              Regarding the online lottery, I prefer the old day style, going to the store, standing in line, chatting with people. I don't let any thing online over rule me!LOL

              Money is a terrible master, but a great servant...Smile

                sully16's avatar - sharan
                Ringleader
                Michigan
                United States
                Member #81740
                October 28, 2009
                40512 Posts
                Online
                Posted: November 29, 2013, 8:33 am - IP Logged

                I'll check it out and decide once the system is in place.

                Did you exchange a walk on part in the war ?

                For a lead role in a cage?

                 

                                                            From Pink Floyd's " Wish you were here"

                  rdgrnr's avatar - walt
                  Way back up in them dadgum hills, son!
                  United States
                  Member #73904
                  April 28, 2009
                  14903 Posts
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                  Posted: November 29, 2013, 11:01 am - IP Logged

                  i am very happy and will be ready the first day

                  I think ya gotta live in Michigan.

                    rdgrnr's avatar - walt
                    Way back up in them dadgum hills, son!
                    United States
                    Member #73904
                    April 28, 2009
                    14903 Posts
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                    Posted: November 29, 2013, 11:04 am - IP Logged

                    Their lucky they did'nt hire Obama's team to run this.

                    LOL Roger that.

                      Avatar
                      Texas
                      United States
                      Member #132455
                      September 4, 2012
                      483 Posts
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                      Posted: December 21, 2013, 4:36 am - IP Logged

                      I hope there will be more states that will offer online lottery games. It is indeed more convenient for players because they can play anywhere. Players don't need to go out if they want to buy a ticket.