While some celebrate the move toward digital convenience, in-person retailers bite back
By Kate Northrop
The New Jersey Lottery has announced that it has voted to approve selling tickets online.
During a meeting on Aug. 17, the New Jersey Lottery Commission announced its decision to start selling tickets directly to players online.
The change applies to its popular draw games, such as Mega Millions, Powerball, and Jersey Cash 5, but it will not include scratch-off instant games.
Possibly starting in the fall of 2024, the Lottery would sell tickets online directly to players through its website or mobile app.
While the Lottery commission said that the change was necessary to accommodate for the up-and-coming demographic of younger players who expect convenience in a digital world, some have advocated that the move to sell tickets online will hurt traditional brick-and-mortar retailers.
"It was something that I had here, hoping that when people came in to get their lottery tickets, they might buy a little something while they were here," Lawrence Valenzano, the owner of Mighty Joe's Deli and Grill in Shamong, told CBS News. "But I'm afraid this is going to chase a lot of it away."
The New Jersey Gasoline C-Store Automotive Association (NJGCA), which presides over many of the state's gas stations and convenience stores, expressed concerns over a potential reduction in foot traffic that online ticket sales might cause.
"I just can't imagine that this won't take business that would have otherwise been in neighborhood stores, whether that's irregular players jumping in on a jackpot now doing it on their phone, or regular players making a portion of their purchases online," NJGCA Chief Administrator and Director of Government Affairs Eric Blomgren said. "Ultimately, the state selling lottery tickets directly to the consumer through the internet puts physical retail stores in competition with the very government entity that is their supplier, distributor, and chief advertiser."
Just as the North Carolina Education Lottery Commission stated in their own recent meeting to announce online instant ticket sales last week, the New Jersey Lottery cited the same point that brick-and-mortar retailers saw increased sales compared to ones in states that did not offer online sales.
"We looked at the experiences that other lotteries have had launching online games and saw sales of all lottery products grow at brick-and-mortar retailers," the New Jersey Lottery said in a statement. "The Lottery believes that this increase was directly related to the introduction of online sales and by appealing to the next generation of lottery players. These new lottery players, primarily under the age of 40, who are more online, are essential to the long-term viability and success of the lottery."
Despite the Lottery's optimistic attitude about the new approach, some State Senators heavily criticized the proposal, saying that the Lottery misinterpreted the law and did not have the authority to authorize online ticket sales.
"The Division [of Lottery] should not make this short-sighted decision because they would be negatively impacting small businesses throughout New Jersey," Senators Steve Oroho and Declan O'Scanlon said. "Online lottery sales could significantly reduce licensed retailer's revenues and put their small businesses in direct competition with the state. Authorizing online sales of lottery tickets pose additional financial concerns that will deprive convenient stores of necessary revenue from ancillary sales. Not to mention, online sales of lottery tickets increase the likelihood that underaged individuals will find a way to make these purchases."
Following the Lottery's vote to approve the proposal on Thursday, Senator Vin Gopal had harsh words for the decision.
"After telling me directly that they would delay this vote to have more stakeholder input, the New Jersey Lottery Commission has chosen to ignore significant stakeholder concerns and move ahead with a proposal that will devastate countless small businesses in the state," Gopal stated. "This decision will only serve to take sales away from New Jersey small businesses without providing them with any compensation."
The NJGCA said in a statement that they are working with legislators to combat the change in a "bipartisan effort to protect small retailers."
Amid the backlash, the New Jersey Lottery emphasized the importance of its retailer network, which consists of nearly 7,000 physical stores.
"The backbone of the New Jersey Lottery is and will always be our network of traditional brick-and-mortar retailers," the Lottery continued. "It is essential that the Lottery maintain a robust and successful network of retailers. A Lottery-managed online sales channel is essential to not only maintaining our retailer sales but growing it by appealing to new players."
I have a huge s--t eating grin reading this just now.
Todd & Kate...thought of you guys IMMEDIATELY and perhaps all your stories about buying on-line in other states woke them up a bit.
That is a myth that brick and mortar stores will suffer.
Like I've said for years in Kentucky you can't buy the same type of scratch tickets like in the store, they have totally different ones for that.
When other states see how much the consumers LIKE this convenience they may too adopt this.
Glad it is not a courier 'on line' service like anti-lottery Texas has and not sure about New York if not mistaken they have something similar there too.
Be that as it may this is great news. Now with off track betting sites becoming legal in many states including here starting 07 SEP 23 am hoping that I may live to see the day where that outdated 1961 law prohibiting buying across state lines goes away.
Brick and mortar stores already have been suffering. Everything is ecommerce.
As for someone like me learning to code and programming junior I think it depends. Key elements, data is also important.
The sad part I see is the govt wants to track everything that everyone does, the only thing I don't like about it.
If anyone on here isn't familiar with the patterns and routines going on, have news for you all, we're screwed in a way. For the ones like me and my friend we will take advantage of it.
i agree about the brick and mortar stores. too many people still prefer to pay cash for lottery tickets, people still like to physically scratch a scratcher. online you can't get a forty and pack of smokes with your lotto tickets.
I think the beauty of online purchases is that the probability of "loosing" a winning ticket is reduced if not entirely eliminated.
You get notified online I assume if your ticket is a winner, I stand to be corrected, where I live we don't have online purchases.
If the only thing taking you to the store is a lottery ticket, then being able to do it online saves you time and gas.
On the flip side it may encourage more spending on lottery if one is not disciplined. The physical act of getting out of the house to the store in itself serves as a deterrent.
My thoughts.
Correct, though it has been forever it seems since I won anything. Email would read Winnings
Deposit Confirmation. Last couple of weeks some lucky soul won $1 million Powerball on-line and wonder what their email read; no doubt it would be different? Will reread the article to see what it says.
Not too specific, said he received an email from KY lottery and almost deleted it. Said he won the money.
Drove to Louisville and got a nice check for $715K!
What are they complaining about' you still have scratch off for sales anyway.
Thank you NJ Lottery for these online sale coming soon.
Good byee Jackpocket and any other Lottery Courier out there. Now I can play my lotteries without a fee$$$$😃👍👏👏👏👏👏👏👏
It is ironic that the New Jersey Lottery is gearing up for on-line sales when they have the most dismal system of paying lottery winners above their $600 threshold. Right now, by their own admission on its website, it is taking lottery players an incredible EIGHT weeks to receive payment from the New Jersey Lottery. And that's EIGHT weeks from after the lottery RECEIVES the claim form in the mail at its ONLY claim center in Trenton. Contrast this with all the surrounding states - New York, Delaware and Pennsylvania, which offer same day check payments at its multiple claim centers and at other locations. Select retailers can pay claims up to $2,500 in Pa and De. And also claims can be paid instantly and in cash at casinos located in their states. The New Jersey delayed payment is beyond shameful. I hope this also comes to the attention of the state legislators and the governor's office. Citizens of New Jersey part with their cash instantly to GAMBLE with the state and they should not provide the state with what amounts to a non-interest loan while they wait for months to get paid.
Article on the news today contradicting what you said about brick and mortar stores---at least in the shopping malls which surprised me. I don't ever go. Costco is it for me. I agree 100% with you for e-commerce and who knows that study could be slighted in favor of shopping malls.
AWESOME!"
i like this, for when i do (finally)leave southern east coast, NC after California, and soon going to that area, yep.
I was supposed to close on a house, a year ago, but did not, but i know that it shall happen sooner than later in South Jersey near borderline Pennsylvania, Delaware, so I at least now know, this will exist. I love this news today!
Here down south in NC, I just LOVE playing monthly winning few x or more a month nice amounts, PICK 4 most of all, winning back to back all online.
However,
I highly doubt " Brick and Mortar retail regarding Lottery that , shall ever die out, premised on, i shall admit, i also miss "The FEEL of a real winning lottery ticket."
Such great news to read, thanks Todd and Kate!
If you go to NJ you'll get to keep less of your winnings, the state gets 10.75%.
In some retailers I've been to, they insist on checking my ID. They say they check everyone. One thing that bugs me about it is the terminal scans a barcode on my driver's license. I wonder if they are just checking my age or if they are retaining more information than that. It may be nothing to worry about but you never know. I've figured out which retailers those are so I just don't go to them but if I do get asked, I show them a U.S. Passport card. It has my date of birth, but the terminal can't scan it so I'm pretty much safe. It also doesn't have my address on it, an extra layer of security.
We're being tracked more and more and there isn't much that can be done about it.
Tennessee needs to read this 💯 come out of the dark ages, and get with the program 😆.
Found it funny the clerks asking if for ID to play the lottery, but she said don't worry about it, you look old enough...Hell yeah!
Online buying would be great 👍👍 if they allow buying from any state .