In what could be a landmark decision, and a shift from their previous stance, Massachusetts lawmakers have given the green light to a budget deal that will usher in a new era for the state’s lottery system. The approved budget includes provisions for the launch of online lottery sales, a move that has been long anticipated and debated within the legislative halls.
This pivotal shift comes after the Senate’s initial hesitation earlier in May, as well as controversy that dates back more than four years. Most recently, concerns were raised about the potential impact on revenue generation and the viability of traditional brick-and-mortar lottery retailers.
The turning point in the Senate’s stance was marked by the introduction of more stringent regulations for the iLottery platform. Notably, the age requirement for participation has been raised from 18 to 21. This change is seen as a compromise to address the concerns of those who feared that the ease of access to lottery games could lead to increased gambling among younger demographics.
The overarching goal of this legislative move is to create a robust funding mechanism for the state’s early education and care initiatives. According to Massachusetts Lottery Executive Director Mark William Bracken, the projected revenue from online lottery sales could reach $100 million by the fiscal year 2025. These funds are earmarked for grants that aim to provide long-term stability and support for high-quality, affordable care for families across Massachusetts.
The push for an online lottery has been a persistent narrative among lottery officials, who have been advocating for the expansion into the digital market to keep pace with neighboring states. Both New Hampshire and Rhode Island have already established their presence in the online lottery space, offering a variety of games and betting options.
Final approval imminent
The final seal of approval rests with Gov. Maura Healey. She has yet to sign off on the $58-billion budget, which also includes free community college for all state residents.
In an interview with GBH News’s Boston Public Radio just over a year ago, Gov. Healey expressed her support for the transition to an online lottery system. She highlighted the importance of modernizing the state-run lottery to compete with the burgeoning sports wagering market, which has seen a significant migration to mobile platforms.
“We have casinos in the state. We also have DraftKings here in the state, and a lot of money is being spent there by a lot of people. What we also have is a lottery system that right now isn’t able to compete against a DraftKings. Nothing against DraftKings, but the Lottery, that’s money coming back to cities and towns. The money spent on DraftKings is going to DraftKings.”
— Massachusetts Gov. Maura Healey
The budget also includes $1.3 billion in additional revenue generated from a 4% tax on annual income exceeding $1 million. This extra money will be invested in improving the state’s education and transportation systems.
Still, unless there’s something hidden in the budget no one’s talking about, the chances are good she’ll sign quickly. Since she’s already shown support for an online lottery and more spending on education, there’s not much standing in her way.
The formal legislative session will draw to a close on July 31, setting a tight deadline for the finalization of the budget.
