Writer
We have seen more and more states embrace online lottery sales recently, but state lawmakers in New Jersey recently took the first step in blocking the New Jersey Lottery from selling tickets online or via its mobile app.
The move to online ticket sales
In 2023, lottery officials announced they were moving forward with plans to increase lottery sales with direct sales online and the lottery's mobile app.
This new policy would allow for online ticket sales for draw games like Mega Millions, Powerball, and Pick-6. In addition, tickets for scratch-off games, which account for more than 50% of the lottery's overall ticket sales, would continue to be available for purchase only at brick-and-mortar retailers.
Lottery officials were looking to offer these online and mobile app ticket sales to appeal to younger consumers. They said these younger consumers are often using websites and apps in their day-to-day lives to order food or pay bills.
The state lottery depends on thousands of brick-and-mortar retail businesses to sell its tickets to consumers. Tickets are available to be purchased online, but only when using state-registered third-party “courier” services.
At that time, state lottery officials said the changes were on course to go into effect in fall 2024.
State lawmakers fight back
However, in early 2024, state lawmakers introduced a bill that would prohibit internet sales of lottery tickets by the State Lottery Commission. Concerns about a decrease in foot traffic at these retailers, if ticket sales moved online, helped lead the fight to put a ban in place.
Recently, hearings were held with several influential business lobbying groups, and state lawmakers took the first steps in blocking the New Jersey Lottery from selling tickets online or via its mobile app, NJ Spotlight News reported.
After those hearings, a key Assembly committee unanimously approved the legislation, which would maintain the current system for nearly 7,000 brick-and-mortar businesses that sell state lottery tickets and prohibit online ticket sales.
Why the push to prohibit online ticket sales?
According to witnesses who testified during these hearings, these in-person ticket sales often bring in more foot traffic for the stores. That foot traffic then turns around and makes more purchases and increases sales for the lottery retailers.
“Lottery sales for small businesses have been a cornerstone for the last 50 years,” said Eric Blomgren, executive director of the New Jersey Gasoline, Convenience Store, Automotive Association. “They draw in people to purchase other, higher-margin items.”
While these same state lawmakers have enacted laws in recent years to legalize online casino gambling and internet sports betting, they also were pushing to maintain the status quo for brick-and-mortar retailers.
Mary Ellen Peppard, vice president of the New Jersey Food Council, said:
It's not just the loss of the sale of the lottery (ticket), it is all the ancillary sales for somebody that used to go to that store for that ticket. They're buying their groceries, or a cup of coffee, or fuel, so that is a significant loss.
Where do things currently stand?
With the committee unanimously agreeing to prohibit online ticket sales, where does the state lottery go from here? NJ Spotlight News reached out to officials and lottery spokesperson Missy Gillespie said online ticket sales are “not currently available in New Jersey.”
When asked about the pending legislation, Gillespie declined to comment.
New Jersey Lottery revenue
For fiscal year 2024, the New Jersey Lottery generated over $3.5 billion in revenue, which was down slightly from the previous year.
Part of this revenue supports the state's public-worker pension system, which helps ease the pressure on taxpayers to fund retirement benefits. The lottery contributed a total of $1.1 billion to these pensions last year, marking the seventh consecutive year of giving more than $1 billion in annual revenue.
This money helps provide relief to taxpayers in the state, who also help fund public-worker pensions via employer contributions allocated in the annual state budget, as well as budgets for county and municipal governments.
Enjoy playing the New Jersey Lottery, and please remember to play responsibly.
Comments