Massachusetts Confirms iLottery Is On Its Way After Governor Signs Off On Budget

Massachusetts has officially entered the digital age of lottery gaming. Governor Maura Healey signed the state Legislature’s $58 million compromise budget bill on July 29, which included a provision for the legalization of online lottery ticket sales.

The transition to online lottery sales is expected to take more than a year, with the Massachusetts Lottery indicating that the iLottery platform will be operational around December 2025. This delay is designed to ensure a secure and robust system that can handle the complexities of online transactions while providing a user-friendly experience for Massachusetts residents.

The decision to embrace online lottery sales, including e-instant tickets, marks an evolution in the state’s approach to lottery sales, aiming to modernize the system and cater to a growing demand for digital convenience.

At the same time, though, Massachusetts is taking a cautious approach, setting the minimum age for purchases at 21. Currently, the age for buying lottery tickets in retail stores is 18.

The Massachusetts Lottery has been a longstanding proponent of an online option, with the rise of legalized gambling at casinos and online sports betting presenting competitive pressures. The introduction of iLottery is seen as a necessary evolution to maintain the Lottery’s relevance and ability to compete in a rapidly changing, and growing, gaming landscape.

State Treasurer Deb Goldberg has expressed optimism about the implementation of iLottery, highlighting its potential to generate significant resources for critical childcare services. The move is also expected to benefit the Lottery’s network of retailers, who will receive support through programs and incentives designed to complement the online platform.

“This move will allow the Lottery to keep pace with its competition and reach newer audiences,” Goldberg said in a statement. “We are prepared to implement a safe and reliable iLottery that will produce significant resources for critical childcare services, which are so desperately needed across the state.” 

Retailers will still play a crucial role in the success of iLottery. Offering in-store rewards for online players will drive foot traffic and foster a symbiotic relationship between the digital and physical sales channels.

Lottery sales through the roof

The Massachusetts Lottery’s financial health has been robust, with net profits exceeding $1 billion in consecutive years for the first time in its history. In the fiscal year 2022, the Lottery produced a net profit of $1.1 billion for the Commonwealth, with revenues reaching a record high of $5.8 billion.

This upward trend continued into the fiscal year 2023. Estimated revenues topped $6 billion and net profits hitting a new all-time high of $1.17 billion. With a payout percentage that ranks among the highest in the U.S., the Massachusetts Lottery has consistently delivered substantial funding to the Commonwealth. The introduction of iLottery is poised to build on this legacy, offering a modern lottery experience that aligns with contemporary consumer behaviors and expectations.

Massachusetts joins a growing list of states that have embraced online lottery sales. States like Georgia, Illinois, Kentucky, Michigan, New Hampshire, North Carolina, Virginia and others have all embraced online lottery sales.

Georgia, pioneering this move, approved online lottery sales in 2012. Illinois was not far behind, legalizing online lottery sales the same year. Kentucky joined the online lottery movement in 2016, expanding its offerings to include draw games, jackpot, and instants online.

Michigan, known for its progressive gambling laws, allows residents to enjoy a variety of online lottery options, including draw, keno, and instant games. New Hampshire launched its online lottery in 2018. North Carolina permits the sale of several draw games through its official website, while Virginia provides a similar setup.

Sports betting brings more success

The lottery isn’t the only gaming segment delivering high returns to Massachusetts. The legalization of sports wagering in the state has yielded substantial economic benefits.

According to a report released by the Massachusetts Gaming Commission, since the launch of retail and online betting in early 2023, the industry has experienced rapid growth. In doing so, it has contributed significantly to the state’s financial landscape. With over 1.6 million active accounts, the sports betting market has generated nearly $600 million in gross gaming revenue for licensed operators.

This economic activity has translated into $118.5 million in tax revenue for the state, further bolstering its financial position. Additionally, the Department of Revenue has collected $204,700 through its regulatory efforts.