Massachusetts Lottery Director Wants Online Games and Ticket Sales

Massachusetts lottery director wants online gaming and ticket sales

Mark Bracken, executive director of the Massachusetts Lottery, called on state lawmakers to allow his agency to operate online lottery games and sell tickets over the Internet to people 18 and older within the state.

Bracken heads the Massachusetts Lottery Commission, which regulates and regulates lottery operations in the state. Bracken said a surge in online sports betting that began in the Bay State in March 2023 could put lotteries out of business.

“We are the last players who refuse to go online,” Bracken said at last week’s lottery board meeting. "Someone can sit [at home] and bet on sports — that's a big problem for us. Lottery players don't have the ability to do that."

Currently, 11 states have iLottery, which allows players to purchase tickets for popular interstate lottery games such as Mega Millions and Powerball. These include Delaware, Georgia, Illinois, Kentucky, Maine, Maryland, Michigan, North Carolina, North Dakota, Pennsylvania and Virginia. Washington, D.C. lottery players can also play online.

When Bracken first suggested the state expand the lottery's online presence last year, Massachusetts Lottery Retailers expressed strong opposition to iLottery.

Lottery Benefits

Bracken called on his legislative body, the Massachusetts General Court, to pass a law allowing online lottery gambling. He said this expansion was vital to ensuring the country continued to maximize the benefits of the lottery, which mainly benefit towns through unfettered local aid.

Since the Massachusetts Lottery sold its first ticket in March 1972, more than $28 billion has been raised for community initiatives.

Bracken believes the state's seven online sportsbooks have won over some lottery players because of their convenience and ability to place bets at any time. Offering instant scratch-off games online can help these players regain their lottery tickets.

While sports betting may have hurt the lottery's recent annual results, fiscal 2023 is still its best ever. The Massachusetts Lottery reported net winnings for the year ending June 30, 2023, of nearly $1.2 billion. However, there will be no online sports betting contests for most of the 2023 fiscal year.

Fiscal year 2024 will provide a clearer picture of the impact of online sports betting on lotteries.

Wallet Problem

Boston-based DraftKings agreed in February to acquire lottery delivery company Jackpocket for $750 million in cash and stock. The transaction is expected to close in the second half of 2024.

Jackpocket allows lottery players to use couriers to place bets on their behalf. Jackpocket charges a 7% commission on account deposits.

DraftKings will use Jackpocket to convert lottery players into sports bettors in sports betting states where the Lottery Express app operates, including Massachusetts. In states where iGaming is allowed, DraftKings hopes to turn jackpot players into online gamblers.

"The proposed transaction will allow DraftKings to enter and grow the massive U.S. lottery industry, but more importantly, strengthen its position in the sports betting and iGaming space by increasing customer lifetime value based on proven cross-selling." An improved customer acquisition engine,” DraftKings said when announcing the acquisition.

Jackpocket provides services in 16 states and Washington, DC. and Puerto Rico are available.