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Will NC Lottery players move online and hurt retail stores?

Dec 4, 2017, 8:51 am

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North Carolina LotteryNorth Carolina Lottery: Will NC Lottery players move online and hurt retail stores?Rating:

The N.C. Retail Merchants Association wants legislators to put the brakes on a proposal to offer online instant lottery games, arguing the move could harm stores that sell lottery tickets.

The N.C. Education Lottery Commission has the proposal for "online instant" games on its Tuesday agenda; lottery spokesman Van Denton said the commission will vote on whether to ask vendors to submit proposals for how they'd provide the online games. The commission's Revenue Generating Committee, led by former state Sen. Tony Rand, voted in October to move a discussion on the online games to the full commission.

"This is a major shift in policy and strategy for selling lottery tickets that we feel is deserving of a more thorough dialogue amongst the Oversight Committee and the General Assembly as a whole," Retail Merchants Association President Andy Ellen wrote to legislators this week in a letter obtained by the Insider. "Mobile and online gaming will negatively impact brick-and-mortar retailers across the state just like any other e-commerce business. The state and cities risk the loss of sales tax dollars because lottery customers buy more items at the store than those customers who do not play the lottery. Those related sales and tax revenues will be lost as players stay at home to play games on their mobile phone, tablet or other mobile device."

Denton pointed out that three other states — Michigan, Georgia and Kentucky — already offer online instant games, and lottery sales at retail locations have continued to increase. North Carolina already has an online subscription service for draw games like Powerball and Mega Millions, which was opposed by the merchants' group when it was launched.

N.C. Lottery Director Alice Garland briefly explained online instant games at a legislative oversight committee meeting recently, saying that players would buy tickets online and could immediately find out if they've won a prize. She said the proposal could increase revenue by $130 million over the first five years.

Some have compared online instant games to the internet sweepstakes parlors that legislators have sought to ban in recent years. In the sweepstakes games, customers would buy prepaid Internet time that comes with points to use in sweepstakes games offered by the Internet provider. The games, with names like "Slots and Stripes," offer players a chance to instantly find out if they've won cash prizes.

Denton said online instant games offered by a state lottery would be substantially different, likely including limits on how much money players can spend and a ban on credit card purchases. "We're committed in all of our sales... to study and understand what would make someone play more than they should," he said.

"In the end, you have to be where the consumers want you to be," Denton said. "Everything's going digital, and the lottery industry is not going to be immune to that."

The Lottery Commission has the authority to add online instant games because state law allows the lottery to offer games available in other states without first seeking legislative approval.

Charlotte Observer

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13 comments. Last comment 3 years ago by Vergie6.
Page 1 of 1
music*'s avatar - DiscoBallGlowing
Fresno, California
United States
Member #157851
August 2, 2014
3858 Posts
Offline
Posted: December 4, 2017, 11:47 am - IP Logged

Is this progress? I do not want to stand in the way of progress. 

Good Luck to the N.C. Education Lottery!Patriot

When will COVID-19 be finished?  A vaccine may protect all of us.

    Cassie8620's avatar - oGH0ok
    California
    United States
    Member #180566
    March 13, 2017
    3906 Posts
    Online
    Posted: December 4, 2017, 3:05 pm - IP Logged

    Yep. How true."Everything" just about has and or is going online/digital ergo, MORE $$$$$$$ for the state.

    I think this is a great idea for players too.

    Lord knows you're only thinkin'about your back-end pockets... (Now,if i am wrong then stop repeating p3 and p4 numbers too,

    and provide MORE scratch off "big winner's over $5000.00 and up in ALL counties.

    -

    Let more good North Carolinians win then.Cheersif you're not only caring about YOUR own back-end.

     

    Gl today on p3 and p4 everyone and i love this proposal. I hope it becomes a reality soon.Winter 2018 would be nice.LOL

    I won over 13G's!( Spring 2020 ) + total (2019) 22,000! Time 2 break the bank, baby! $ $ $ Banana                                                             

    0800 0068 0806 1027 1608 0620 0862 6800 8602 8620 1211 1215 1216 1236 1623 3193 3533 3009 3150 3159   

    1038 1236 3241 2579 1438 0476 1417 1671 1467  4773.5593.5635.5925.7159.9159.

    2464 2426 2446 3522 4764 6442 4949.4950.6231.7664 7678 8779 9203.9513.9152.9561.9899.

      LiveInGreenBay's avatar - driver
      Green Bay
      United States
      Member #169386
      October 15, 2015
      2463 Posts
      Online
      Posted: December 4, 2017, 3:34 pm - IP Logged

      Don't know about you folks but I'd like the physical ticket in my hand.  Computers crash and are hacked all the time.  In Wisconsin if a retailer sells a winning ticket they receive a percentage of the jackpot.  Sounds to me the state is saving money by screwing the retailer.  Also a way of the state to find out how much you accumulate  (in small un-taxable winnings) during the year.  Hello IRS.

      Never give up.  Banana

        Avatar
        Kentucky
        United States
        Member #32651
        February 14, 2006
        8923 Posts
        Offline
        Posted: December 4, 2017, 4:27 pm - IP Logged

        players would buy tickets online and could immediately find out if they've won a prize.

        How many stories about clerks and store owners cheating players must we read before it becomes obvious buying tickets online is a much better option? 

        It's getting to the point where I expect a clerk to make a mistake no matter how simply I try to cash and buy tickets.

          Avatar
          Wyomissing, PA
          United States
          Member #161045
          November 15, 2014
          481 Posts
          Offline
          Posted: December 4, 2017, 6:07 pm - IP Logged

          It's not just clerks being unfriendly, making mistakes, scamming, etc. But also cashing any sizable winner (ie. $100+) is often a huge hassle.

          From all indications, PA Lottery is well underway to launching on-line lottery sales. Can't come soon enough. Even if I have to wait for a check, that's fine. Heck, I'd save money that way. Though, I'd expect many on-line lotteries, that don't already, to offer direct debit card payment in the near future. Faster players get funds, more they'll wager again. Casinos understand this and will payout jackpots upwards of 6-figures cash on the spot.

          Even many small mom&pop convenience stores don't overly rely on lottery beyond getting customers in the door. Most lotteries pay around 5% commission. Even with additional incentives and bonuses, it's difficult to crack 8% let alone 10%. A lot of work for little reward; high risk of losses due to employee error and theft.

          In PA, many such establishments are turning to Pennsylvania Skills slot-like machines (legal for now; tolerated by authorities) that are entertaining for players and potentially far more profitable.

          While lotteries in some jurisdictions can still do well the old way (maybe North Carolina falls into that category), in areas with much gaming competition (ie. the mid-Atlantic region), many others need to offer more convenience, such as on-line play, to effectively compete with gaming alternatives.

            LiveInGreenBay's avatar - driver
            Green Bay
            United States
            Member #169386
            October 15, 2015
            2463 Posts
            Online
            Posted: December 4, 2017, 6:23 pm - IP Logged

            players would buy tickets online and could immediately find out if they've won a prize.

            How many stories about clerks and store owners cheating players must we read before it becomes obvious buying tickets online is a much better option? 

            It's getting to the point where I expect a clerk to make a mistake no matter how simply I try to cash and buy tickets.

            Anything you buy on the internet is government record.  Benjamin Franklin once said.. Those who give up liberty for security deserve neither.   Smart man.

            Never give up.  Banana

              partlycloudy07's avatar - father
              North Carolina
              United States
              Member #163492
              February 1, 2015
              2566 Posts
              Online
              Posted: December 4, 2017, 8:02 pm - IP Logged

              The consumers who go into gas stations (I will not say the well known ones around here) do not deserve our business as we are "in the way" or as a cashier put it to me "your tickets do not matter" . Whoever thinks that keno has come to bars and other establishments is not an ice breaker for NCEL to establish legalized gambling beyond what you have now is living in lala land. Gambling online or off line is well on the way so you may as well accept that . Consumers are tired of being treated like they are "in the way" if the big corporate stores do not want our ticket sales then NCEL may as well keep the profits in house . Its funny that they would think that gamblers would cut back on spending hahaha NCEL has made a lot of money on elusive dreams of its players .

                Kyle7824's avatar - Lottery-042.jpg
                Greenville, NC
                United States
                Member #157296
                July 14, 2014
                5554 Posts
                Offline
                Posted: December 4, 2017, 9:07 pm - IP Logged

                Hey NCEL , 

                why don’t you put Pick 3 and Pick 4 on the NET. I mean it’s called “Online” lottery on the receipt. Geez.

                  Cassie8620's avatar - oGH0ok
                  California
                  United States
                  Member #180566
                  March 13, 2017
                  3906 Posts
                  Online
                  Posted: December 4, 2017, 10:23 pm - IP Logged

                  LIVE IN GREEN BAY:

                  What?Oh. Well in that case IF true, then never mind.LOL Nope. NVM.  I been racking up$$$ this year with small un-taxable Pick 3.I like that.

                   

                  Good luck tonight winning with your games everyone.

                  G-night.

                  I won over 13G's!( Spring 2020 ) + total (2019) 22,000! Time 2 break the bank, baby! $ $ $ Banana                                                             

                  0800 0068 0806 1027 1608 0620 0862 6800 8602 8620 1211 1215 1216 1236 1623 3193 3533 3009 3150 3159   

                  1038 1236 3241 2579 1438 0476 1417 1671 1467  4773.5593.5635.5925.7159.9159.

                  2464 2426 2446 3522 4764 6442 4949.4950.6231.7664 7678 8779 9203.9513.9152.9561.9899.

                    Avatar

                    United States
                    Member #185897
                    November 23, 2017
                    29 Posts
                    Offline
                    Posted: December 4, 2017, 11:25 pm - IP Logged

                    I didn't realize some states already did this so I just visited the Georgia site and tried the demos. I can see how it could be addicting because it is so convenient. And the tickets are animated with sounds.

                      Avatar
                      Kentucky
                      United States
                      Member #32651
                      February 14, 2006
                      8923 Posts
                      Offline
                      Posted: December 6, 2017, 11:22 pm - IP Logged

                      It's not just clerks being unfriendly, making mistakes, scamming, etc. But also cashing any sizable winner (ie. $100+) is often a huge hassle.

                      From all indications, PA Lottery is well underway to launching on-line lottery sales. Can't come soon enough. Even if I have to wait for a check, that's fine. Heck, I'd save money that way. Though, I'd expect many on-line lotteries, that don't already, to offer direct debit card payment in the near future. Faster players get funds, more they'll wager again. Casinos understand this and will payout jackpots upwards of 6-figures cash on the spot.

                      Even many small mom&pop convenience stores don't overly rely on lottery beyond getting customers in the door. Most lotteries pay around 5% commission. Even with additional incentives and bonuses, it's difficult to crack 8% let alone 10%. A lot of work for little reward; high risk of losses due to employee error and theft.

                      In PA, many such establishments are turning to Pennsylvania Skills slot-like machines (legal for now; tolerated by authorities) that are entertaining for players and potentially far more profitable.

                      While lotteries in some jurisdictions can still do well the old way (maybe North Carolina falls into that category), in areas with much gaming competition (ie. the mid-Atlantic region), many others need to offer more convenience, such as on-line play, to effectively compete with gaming alternatives.

                      Sort of strange the N.C. Retail Merchants Association is claiming lottery agents are losing $5 make for every $100 worth of online ticket sales when about 65% of sales are scratch-offs. Basically their argument is a potential loss of sales based on online players not going to stores. 

                        Avatar
                        Kentucky
                        United States
                        Member #32651
                        February 14, 2006
                        8923 Posts
                        Offline
                        Posted: December 6, 2017, 11:33 pm - IP Logged

                        LIVE IN GREEN BAY:

                        What?Oh. Well in that case IF true, then never mind.LOL Nope. NVM.  I been racking up$$$ this year with small un-taxable Pick 3.I like that.

                         

                        Good luck tonight winning with your games everyone.

                        G-night.

                        The KY lottery only sells jackpot games online (MM, PB, Lucky for Life, and Cashball) and players are given W-2Gs when they win prizes over $600. Taxes are deducted from prizes over $25,000 just like going to lottery headquarters. 

                        There a number of scratch-off like games online and I've never had any IRS problems withdrawing small winnings.

                          Vergie6's avatar - DSCN4488
                          25
                          North Carolina
                          United States
                          Member #59853
                          March 29, 2008
                          47184 Posts
                          Online
                          Posted: December 12, 2017, 8:05 am - IP Logged

                          I think it would be great...much more convenient to be able to play online!