According to one industry expert, an online lottery in Massachusetts is more likely than not.
Victor A. Matheson, a professor of economics at the College of the Holy Cross specializing in gambling, believes that online sports betting could serve as a catalyst for introducing an online lottery in the state.
“I believe an online lottery may be inevitable,” Matheson told PlayMA. “With the rise of online gambling, it’s going to be very tempting for the lottery to have an online presence as well.”
In late May, the Massachusetts Senate rejected a proposal to include an online lottery in the annual budget. However, the House, Treasurer Deb Goldberg, and Governor Maura Healey are in favor of an online lottery. Negotiations are currently underway as representatives from the Senate and House will try to reach an agreement.
The launch of Online gambling in Ma in March could pave the way for an online lottery.
But what would it involve? Let’s take a closer look.
One step in the right direction
Based on Matheson, the Massachusetts Lotto is one of the most popular lotteries in the country, selling more tickets per capita than almost any other state.
And that money goes back to Massachusetts. According to the lottery’s website, for every dollar spent, 73 cents goes back to the players. Then, 19 cents goes towards local aid, and 6 cents goes toward commissions and bonuses for lottery retailers. The remaining 2 cents goes towards administrative expenses.
In the 2022 Fiscal Year, $1,105,437,864 in net profit was returned to the state.
Legalizing an online component of the online aspect of the MOTHER Lottery is a step in the right direction for Massachusetts, keeping up with the latest technological advancements.
May online lotto co-exist along with MA’ t other gambling options?
Probably.
“This hasn’t been easy to determine whether these things are complements or substitutes,” Matheson said. “(Will) we see one form cannibalize another?”
Matheson added that his question stems from the decline of horse race betting in Massachusetts and across the country. While betting on horse racing is still popular in certain areas, it’s not what it once was. That decline started when other alternative, legal gambling options emerged.
Ma casino betting gambling is another competitor that Matheson had concerns about.
“A nice study in West Virginia showed that sports betting actually decreased overall gambling revenues in the state, as people shifted from relatively high-taxed casino gambling to relatively lower-taxed sports gambling,” he said. “And that’s the same thing that could happen here.
“This is a big revenue piece.”
What are the greatest hurdles?
The first step is legalizing an online lottery in Massachusetts.
State lawmakers are currently discussing a compromise to potentially include an online lottery in the state budget after the Senate rejected a previous proposal in May.
“Seeing how long it took to legalize sports gambling in the state, that’s definitely not going to happen overnight,” Matheson said.
But he noted that other challenges include building an online lottery app and advertising.
“Creating a good, easy, fast, convenient app that people want to use and is safe and secure doesn’t happen automatically,” he said.
Matheson stated that if he were the Massachusetts Lottery, he would already be reaching out to IT providers, even with no laws in place to legalize an online lottery.
When can MA occupants see a lawful online lotto system?
This isn’t something that will pop up overnight.
Again, Massachusetts needs to legalize the online lottery before we can begin to wager on a regular basis.
“Legalizing it is the first step,” Matheson said. “And Massachusetts has shown with gambling that it’s not very quick. So I don’t think we’ll see this overnight, but I will say, I think we will see this eventually.”
Convenience performs a major factor
Today, more than ever, customers want to indulge in activities from the comfort of their homes, and sports betting is a prime example.
“Even in Vegas—which, of course, is the casino capital of the United States—over two-thirds of sports bets are made online compared to in the casinos,” Matheson said. “Even in Vegas, people know you do things through the app.”
One of the lottery’s biggest advantages, according to Matheson, is the convenience. Whether you’re stopping for gas or need a snack at a convenience store, there are plenty of lottery options to choose from.
However, that is subject to change.
“We’re in a world where fewer people are traveling,” Matheson said. “(An online lottery) is one way, at least in the long term, to safeguard your product when people aren’t going to gas stations and convenience stores the same way they used to.”
Lottery’ t payouts a significant draw in comparison to casinos, sports activities gambling
In a sportsbook or casino, it’s unlikely to turn $2 into $100,000,000 unless you’re creating the biggest sports betting parlay ever. However, the lottery provides customers with the opportunity for life-changing payouts at a very low cost.
“The lottery has offered convenience and what’s known as skew—massively large payouts at the very high end,” Matheson said. “Of course, they can still do that, but that enormous convenience they’ve had over all sorts of betting has worn away super quickly.”
Lottery games are also easier to play compared to gambling because they are random. You don’t need to be an expert or study how certain teams cover the spread. Anyone can choose random numbers and hope to win.
Hersker Hensley is a journalist from Des Moines, Iowa, with experience covering online sports betting and gambling for Catena Media. His byline has appeared in the Associated Press, Sports Illustrated, and sites within the USA Today Network. Hensley graduated from the University of Iowa in 2019 and spent his college career working for the Daily Iowan’s sports department, both as an editor and reporter.
