The Massachusetts Lottery is inching closer to launch its digital products to increase its revenues.
Massachusetts state senate has given the approval of its legislation. The state senate has voted 39-1 in favor of S2423. The economic development bill will allow the state lottery to broaden its reach through digital channels. It includes Senator Jennifer Flanagan’s amendment that will allow the state lottery improve its revenues.
Once the bill is completely approved, Massachusetts will become the 5th US state that will offer lottery products through digital channels. The 1st state to launch online sales was Illinois and was followed by a number of states.
Land-Based Lottery Retailers Against Digital Sales
State lottery retailers that are publicly situated voted against Senator Flanagan’s amendment. The amendment was approved by a slim margin of 22-17 due to the concerns lottery retailers and anti-gambling councilors. The issue here is that land-based lottery retailers feel that their sales will drop once online sales are available.
The Massachusetts Lottery Commission will assess the amendment. The commission will also determine what types of products the state lottery can offer online. It has previously requested proposals for an iLottery System that will enable the state lottery to offer digital lottery games and fantasy sports betting.
The proposed bill S2423 contains statements proposing the creation of a commission to examine DFS. It has recently been sent to a conference committee for reconciliation.
State Lottery Sets Revenue Records but Profit Margins Needs Improvement
The Massachusetts State Lottery has achieved a new revenue record recently. It has surpassed its previous record for 5 straight years already. The lottery attained sales of $5.23b, $217m higher than the previous year. The State Lottery has achieved a $986.9 million in annual profit.
While MSL is enjoying revenue records, it still feels that it doesn’t have enough profit earning because of the 73.4% prize payout ratio. Pundits say that the flat profits and increased payout percentages are some of the reasons that initiate a digital sales campaign.
Would you play lottery online instead of buying a ticket at a grocery? What would make you buy a lottery ticket online?