Rep. Lamberth Files Amendment To End Tennessee Lottery Online Ticket Sales
Fate of online lottery sales could hinge on existence of clause in state code
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Rep. William Lamberth filed an amendment to his HB 1330 legislation that would remove language that arguably gives the authority to the Tennessee Education Lottery Corporation (TELC) to sell lottery tickets online.
Lamberth added House Amendment 3 to the bill, which deletes the following from Section 4-51-108(a)(2) as it pertains to lottery ticket sales by the TELC:
“Nothing in this part shall be construed as prohibiting or restricting the direct sale of lottery tickets or shares by the corporation through any form of payment and in any amount.”
The clause came up in a pointed debate in February between Lamberth and TELC Chief Executive Officer Rebecca Paul in a House Finance, Ways, and Means Committee hearing in February. Paul had previously authorized online lottery ticket sales in the Volunteer State in January, limiting digital sales only to Powerball tickets via ACH payments.
Lamberth’s bill, called the Less Is More Act of 2025, looks to streamline various parts of state government and is scheduled to be heard on the House floor Thursday. The companion bill in the Senate (SB 1316) was recommended for passage by the upper chamber’s State and Local Government Committee on April 2.
Lamberth seeking final outcome
Lamberth’s amendment implies he is not satisfied with Paul’s explanation with relation to the legality of the app. At the February hearing, she said the agency’s legal team would provide Lamberth the “portion of the enabling legislation” that would allow the TELC to sell online lottery tickets. In February, Paul also testified the program was rather limited in scope with only 300 sign-ups and less than $3,000 in ticket sales.
The Fiscal Review Committee could not provide definitive figures for “forgone lottery proceeds” should the TELC no longer be able to offer online lottery sales in its fiscal note accompanying the bill. The committee took note of TELC’s claim the agency generates $25 in profit for every $100 worth of iLottery sales but said “it was uncertain how much of sales and profits would have been realized through traditional lottery sales by lottery retailers” because there was no long-term data available.
