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Kentucky Lottery launches online ticket sales

Kentucky LotteryKentucky Lottery: Kentucky Lottery launches online ticket sales
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Without any fanfare, the Kentucky Lottery Monday began selling tickets online to try and attract more young adults.

The initial offerings are limited to several lottery games, including Powerball, Mega Millions, Kentucky Cash Ball, and five instant games.

Kentucky is the fourth state to sell lottery tickets on the Internet, joining Georgia, Illinois, and Michigan. Minnesota tried it for a while before the state's legislature decided to ban the practice.

The Kentucky Lottery has worked with both the Kentucky Council on Problem Gambling and the National Council on Problem Gambling to limit potential harm to players.  Lottery officials said they have set what they view as conservative limits on online play — $200 daily, $500 a week and $1,000 a month.

Lottery spokesman Chip Polston said that "our customers are aging."  He said that about 25 percent of Kentucky residents between 18 to 35 have purchased at least one lottery ticket in the last year.

Although U.S. Internet lottery ticket sales have been limited, such tickets have been sold in European countries online for years, with a large portion of those sales going to the 18- to 35-year-old sector.

To sustain lottery revenue, "we need to attract the younger" audience, which tends to be mobile and has extensive access to technology and personal devices, Polston said.

To help boost a flagging state treasury, the lottery board of directors in spring 2013 directed the staff to pursue two new sources of revenue  - Keno and online ticket sales.

Keno sales began in November 2013, but it has taken three years to develop the complex online ticketing system, including the mechanism to set up accounts and security considerations.  The lottery has been working with the longtime Kentucky Lottery vendor, IGT, formerly GTech, to develop the system, Polston said.

"It was a big undertaking to make it (online sales) happen," Polston said.

"To maintain our business, we need to be more attractive to a younger demographic who are accustomed to conducting a majority of their retail purchases online," Arch Gleason, president and CEO of the Kentucky Lottery, said in a release.

Gleason said the move to Internet sales should not be interpreted as competition to the Kentucky Lottery's 3,200 retailers.

"Brick and mortar retailers are and will continue to be the most important part of our business," he said.

Polston said the lottery doesn't believe the online sales will reduce sales at the outlets across the state.

To help retailers, the online system allows players to fund their online account for play at stores that sell lottery tickets.  Retailers will receive their standard 5 percent commission for the sale of those products.

For at least the first six months, players who add funds to their accounts by purchasing at least $20 in account funding on a single transaction at retailers will receive an extra $5 in "bonus bucks" in their online account.

The Kentucky Lottery forecasts that online sales in the new fiscal year beginning July 1 will total about $7 million.  Overall lottery sales, in comparison, for the current fiscal year ending June 30 are projected to be $994 million.

How to play online

Before tickets can be purchased online, players also must set up an account and disclose the last four numbers of their Social Security number and their date of birth.  A security vendor will check databases to make sure the players are who they claim to be.  The person can then put money into the account by purchases through a retailer, or online with a credit card.

Money can be withdrawn from the account to play, but deposits left in an account cannot be returned to a player because of money-laundering laws.  Winnings can be added to the account or withdrawn.

Courier-Journal, Lottery Post Staff

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22 comments. Last comment 7 months ago by Stack47.
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Egg Harbor twp.south Jersey shore
United States
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June 29, 2011
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Posted: April 19, 2016, 8:53 pm - IP Logged

Mentions Chip Polston, he's an LP member called ChipP2

Long time posters should remember him.

Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

    Artist77's avatar - batman14

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    Posted: April 19, 2016, 9:48 pm - IP Logged

    I guess you have to be a Kentucky resident to buy online?

    J'aime La France.

      Groppo's avatar - cat anm.gif

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      January 7, 2015
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      Posted: April 19, 2016, 9:58 pm - IP Logged

      I guess you have to be a Kentucky resident to buy online?

      I wish all states would adopt this rule.

      That way, innocent people aren't marked as targets

      just because they want to go the store every week to get tickets.

      • Don't chase the numbers you play.
      • Play only numbers you've already played, plus however many random picks.
      • But, ALWAYS the regular numbers you play.  This will make you a winner, not a chaser.
                (so far, though, I've yet to win any significant lotto prize)
        Avatar
        Kentucky
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        Posted: April 19, 2016, 10:06 pm - IP Logged

        Mentions Chip Polston, he's an LP member called ChipP2

        Long time posters should remember him.

        Chip said on LP a couple of years ago the KY Lottery would sell tickets Online. They are still considering offering their 5 minute Keno game Online.

          Avatar
          Kentucky
          United States
          Member #32652
          February 14, 2006
          7322 Posts
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          Posted: April 19, 2016, 10:31 pm - IP Logged

          I guess you have to be a Kentucky resident to buy online?

          Presently all the state lotteries that offer Online wagering limit it to residences and/or wagering while physically in the state. Interstate Online wagering on horse racing is still legal in the U.S., but a bi-partisan bill was purposed in the House last year to make it illegal.

          It still baffles me why the powers to be want to treat us like children by pretending they know "what is us".

            Bondi Junction
            Australia
            Member #57242
            December 24, 2007
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            Posted: April 19, 2016, 11:33 pm - IP Logged

            Without any fanfare, the Kentucky Lottery Monday began selling tickets online to try and attract more young adults.

            The initial offerings are limited to several lottery games, including Powerball, Mega Millions, Kentucky Cash Ball, and five instant games.

            Kentucky is the fourth state to sell lottery tickets on the Internet, joining Georgia, Illinois, and Michigan. Minnesota tried it for a while before the state's legislature decided to ban the practice.

            The Kentucky Lottery has worked with both the Kentucky Council on Problem Gambling and the National Council on Problem Gambling to limit potential harm to players.  Lottery officials said they have set what they view as conservative limits on online play — $200 daily, $500 a week and $1,000 a month.

            Lottery spokesman Chip Polston said that "our customers are aging."  He said that about 25 percent of Kentucky residents between 18 to 35 have purchased at least one lottery ticket in the last year.

            Although U.S. Internet lottery ticket sales have been limited, such tickets have been sold in European countries online for years, with a large portion of those sales going to the 18- to 35-year-old sector.

            To sustain lottery revenue, "we need to attract the younger" audience, which tends to be mobile and has extensive access to technology and personal devices, Polston said.

            To help boost a flagging state treasury, the lottery board of directors in spring 2013 directed the staff to pursue two new sources of revenue  - Keno and online ticket sales.

            Keno sales began in November 2013, but it has taken three years to develop the complex online ticketing system, including the mechanism to set up accounts and security considerations.  The lottery has been working with the longtime Kentucky Lottery vendor, IGT, formerly GTech, to develop the system, Polston said.

            "It was a big undertaking to make it (online sales) happen," Polston said.

            "To maintain our business, we need to be more attractive to a younger demographic who are accustomed to conducting a majority of their retail purchases online," Arch Gleason, president and CEO of the Kentucky Lottery, said in a release.

            Gleason said the move to Internet sales should not be interpreted as competition to the Kentucky Lottery's 3,200 retailers.

            "Brick and mortar retailers are and will continue to be the most important part of our business," he said.

            Polston said the lottery doesn't believe the online sales will reduce sales at the outlets across the state.

            To help retailers, the online system allows players to fund their online account for play at stores that sell lottery tickets.  Retailers will receive their standard 5 percent commission for the sale of those products.

            For at least the first six months, players who add funds to their accounts by purchasing at least $20 in account funding on a single transaction at retailers will receive an extra $5 in "bonus bucks" in their online account.

            The Kentucky Lottery forecasts that online sales in the new fiscal year beginning July 1 will total about $7 million.  Overall lottery sales, in comparison, for the current fiscal year ending June 30 are projected to be $994 million.

            How to play online

            Before tickets can be purchased online, players also must set up an account and disclose the last four numbers of their Social Security number and their date of birth.  A security vendor will check databases to make sure the players are who they claim to be.  The person can then put money into the account by purchases through a retailer, or online with a credit card.

            Money can be withdrawn from the account to play, but deposits left in an account cannot be returned to a player because of money-laundering laws.  Winnings can be added to the account or withdrawn.

            The New York Lottery also has an online service, not for tickets, but for subscriptions. Online sales are a great way for lotteries to raise additional revenue. 

            Many people forget to buy tickets, or are away on vacation, if they can conveniently buy a subscription online, they are in all draws for a year.

            Lotteries also don't pay commissions to agents on online sales or winning tickets. With subscriptions, lotteries get payments in advance.

            Online sales are a win-win for state lotteries!

            We all get a lot out of lotteries!

              RedStang's avatar - tallman zps6gf4inoc.jpg
              NY
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              January 21, 2012
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              Posted: April 20, 2016, 1:58 am - IP Logged

              The only way they can attract the younger audience is by giving cigarettes, beer, $200 Nike shoes and iphones as prizes.

                KY Lottery's avatar - KLC 20logo%204c%20v.jpg
                New Member
                Louisville, KY
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                July 31, 2015
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                Posted: April 20, 2016, 7:52 am - IP Logged

                Hey there Artist77 - this is Chip Polston in KY. Yes, you do have to be a KY resident in order to play. Also, we use a geolocation service to make sure you're within the borders of the state when playing.

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                  Simpsonville
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                  January 22, 2015
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                  Posted: April 20, 2016, 9:03 am - IP Logged

                  Hey there Artist77 - this is Chip Polston in KY. Yes, you do have to be a KY resident in order to play. Also, we use a geolocation service to make sure you're within the borders of the state when playing.

                  Thanks for posting this Todd.  Will never know if my suggestion as a news story was the reason for posting this informative article.

                   

                  One fine day I'll be going to Kentucky Lottery Headquarters on Main St to get the big one.  Not too far from where I work @ the PICU a few miles away--a very sad job.

                   I remember years ago going there to buy tickets and the security guard there said they don't sell tickets.  Wish they did, Massachusetts does, not that I've ever visited their headquarters (yet).

                   

                  Now I see a five dollar bonus is even more incentive to give this a try.

                  And yes, of course you must be a KY resident to play on line, thanks to that old antiquated 1961 federal law I keep harping on.

                   

                   

                  Jeffrey

                    cbr$'s avatar - maren
                    Cordova,Al.
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                    Posted: April 20, 2016, 9:54 am - IP Logged
                    This sound great  .  Again another state who want to increase it profit margin
                    limit the accounts to residents in the state only. I don't believe they consider
                    or think about tourism or people that live on their border line that cross over
                    to purchase lottery tickets. If they just expand  their thinking a little, buyers of your tickets that live on the border line would find this service a great plus.
                      Avatar
                      Simpsonville
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                      January 22, 2015
                      678 Posts
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                      Posted: April 20, 2016, 9:59 am - IP Logged
                      This sound great  .  Again another state who want to increase it profit margin
                      limit the accounts to residents in the state only. I don't believe they consider
                      or think about tourism or people that live on their border line that cross over
                      to purchase lottery tickets. If they just expand  their thinking a little, buyers of your tickets that live on the border line would find this service a great plus.

                      True enough, but remember my post about Federal law prohibiting this from 1961.  PERHAPS Alabama will get their own lottery, but now that the hoopla over giant jackpots is over with I won't hold my breath waiting.  Same for Mississippi!!

                        Artist77's avatar - batman14

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                        Posted: April 20, 2016, 4:35 pm - IP Logged

                        Hey there Artist77 - this is Chip Polston in KY. Yes, you do have to be a KY resident in order to play. Also, we use a geolocation service to make sure you're within the borders of the state when playing.

                        Hi Chip

                        Thanks for the update.

                        J'aime La France.

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                          Kentucky
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                          February 14, 2006
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                          Posted: April 20, 2016, 6:09 pm - IP Logged

                          Hey there Artist77 - this is Chip Polston in KY. Yes, you do have to be a KY resident in order to play. Also, we use a geolocation service to make sure you're within the borders of the state when playing.

                          Will 5 minute Keno be offered online?

                            grwurston's avatar - 144
                            Let's Go Rangers!!!
                            bel air maryland
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                            Posted: April 20, 2016, 7:02 pm - IP Logged

                            Mentions Chip Polston, he's an LP member called ChipP2

                            Long time posters should remember him.

                            Yes, we do. Used to be Chip P  Some people here don't believe lottery officials belong to LP. Well, here's your proof.

                            Now, have you ever wondered why the numbers or systems that you've used successfully for a long time, and then decided to share, suddenly stop working completely within a week or two? 

                            Guess what?    Lurking and  Hiding Behind Computer   and there goes your winnings...   See Ya!

                            "You can observe a lot just by watching." Yogi Berra, Hall of Fame baseball player.

                            The numbers will tell you what numbers to play. Pay attention to the numbers.

                            Don't just think outside the box, crush it.