Retailers wary of online lottery sales from freemexy's blog
Retailers wary of online lottery sales
Retailers like Mike Lubarsky, manager of The Broadway Restaurant in Worcester, which has a popular lottery room, feel that selling lottery products on the internet would be bad for business, especially with the revenue being so diluted from so many retailers in the game.Get more news about 彩票API,you can vist loto98.com
But state Treasurer Deborah B. Goldberg and Massachusetts Lottery officials say going to online lottery games is the next step to modernization and competing in a rapidly evolving digital marketplace in order to maximize local aid to municipalities.
Both sides of the issue made their cases before the Legislature’s Joint Committee on Consumer Protection and Professional Licensure on Monday.House Bill 37, titled “An Act establishing an online Lottery,” sponsored by Ms. Goldberg, is among three bills that seek to transition the 47-year-old state lottery to online.
“It’s just going to put another nail in our coffin,” Mr. Lubarsky said while customers mingled in The Broadway’s lottery room at 100 Water St.
Mr. Lubarsky said the business invested a lot of money in 1998 to build a special room dedicated to lottery sales and Keno. In the early days, he said, the lottery was more restrictive in who could sell lottery tickets. Permitted sellers like The Broadway made a lot more money in commissions than they do now, he said.
“Years ago, we were the No. 1 lottery place in the state,” he said, pointing to the area where a few people sat scratching tickets and playing Keno. “We used to have rows of chairs and they’d be fighting for a seat.”
Robert A. Mellion, executive director of the Westboro-based Massachusetts Package Stores Association, said the majority of the association’s 760 members, who are independently owned retailers of beer, wine and spirits, sell lottery tickets.
The industry, he said, is already in a “state of disruption” because of competition from out-of-state retailers who allegedly ship alcohol products to Massachusetts illegally, and tariffs, as well as competition from the cannabis industry.
“In those communities that allow the sale of cannabis, we’re seeing a material decline of alcohol beverages. They (lottery sellers) are taking a retail hit,” Mr. Mellion said. “It’s logical to assume the same thing is going to happen when we shift from a system where everything is tangible to an online system.
“These are all small businesses all across the state. We’re trying what we can to keep them afloat,” Mr. Mellion continued. “I understand a desire to transition online and to capture a new market share. But the system is not broken here. People are buying tickets. We’re seeing record sales.”The state’s lottery is in the top five in the country in overall sales and has the highest per-capita spending, according to Lottery officials.
Since 2015, the state lottery has surpassed $5 billion in annual gross sales. Net profit was the highest in fiscal 2017, at $1.039 billion. It was $997 million in fiscal 2018. Retailers like the owner of The Broadway received $291.9 million in commission in fiscal 2017, and $303 million in fiscal 2018. About 73% of gross revenue is paid out in prizes.
“Even as the Lottery continues to deliver a significant profit, growth has not kept up with inflation, nor has it met the need for resources at the local level,” Ms. Goldberg, the state treasurer, stated in her written testimony at the hearing on Monday. “To maximize returns, the Lottery needs the flexibility to meet the demands of a changing marketplace.”
Several states, including New Hampshire, Illinois, Michigan, Georgia and Kentucky, offer games online.
“It’s a necessary thing. We want to be online for the same reason as Amazon and Walmart,” said Michael Sweeney, executive director of the Massachusetts Lottery. “The simple reality of the world today is people have expectations to be able to view, research and purchase products online, particularly on a mobile platform so they can access by their phone.”
Mr. Sweeney said the hope is to be able to offer a full menu of lottery products. No decision has been made regarding Keno, which is successful in restaurants and bars. Draw games such as Mega Millions and Powerball would be included. He is not sure how scratch tickets would work.
Retailers like Mike Lubarsky, manager of The Broadway Restaurant in Worcester, which has a popular lottery room, feel that selling lottery products on the internet would be bad for business, especially with the revenue being so diluted from so many retailers in the game.Get more news about 彩票API,you can vist loto98.com
But state Treasurer Deborah B. Goldberg and Massachusetts Lottery officials say going to online lottery games is the next step to modernization and competing in a rapidly evolving digital marketplace in order to maximize local aid to municipalities.
Both sides of the issue made their cases before the Legislature’s Joint Committee on Consumer Protection and Professional Licensure on Monday.House Bill 37, titled “An Act establishing an online Lottery,” sponsored by Ms. Goldberg, is among three bills that seek to transition the 47-year-old state lottery to online.
“It’s just going to put another nail in our coffin,” Mr. Lubarsky said while customers mingled in The Broadway’s lottery room at 100 Water St.
Mr. Lubarsky said the business invested a lot of money in 1998 to build a special room dedicated to lottery sales and Keno. In the early days, he said, the lottery was more restrictive in who could sell lottery tickets. Permitted sellers like The Broadway made a lot more money in commissions than they do now, he said.
“Years ago, we were the No. 1 lottery place in the state,” he said, pointing to the area where a few people sat scratching tickets and playing Keno. “We used to have rows of chairs and they’d be fighting for a seat.”
Robert A. Mellion, executive director of the Westboro-based Massachusetts Package Stores Association, said the majority of the association’s 760 members, who are independently owned retailers of beer, wine and spirits, sell lottery tickets.
The industry, he said, is already in a “state of disruption” because of competition from out-of-state retailers who allegedly ship alcohol products to Massachusetts illegally, and tariffs, as well as competition from the cannabis industry.
“In those communities that allow the sale of cannabis, we’re seeing a material decline of alcohol beverages. They (lottery sellers) are taking a retail hit,” Mr. Mellion said. “It’s logical to assume the same thing is going to happen when we shift from a system where everything is tangible to an online system.
“These are all small businesses all across the state. We’re trying what we can to keep them afloat,” Mr. Mellion continued. “I understand a desire to transition online and to capture a new market share. But the system is not broken here. People are buying tickets. We’re seeing record sales.”The state’s lottery is in the top five in the country in overall sales and has the highest per-capita spending, according to Lottery officials.
Since 2015, the state lottery has surpassed $5 billion in annual gross sales. Net profit was the highest in fiscal 2017, at $1.039 billion. It was $997 million in fiscal 2018. Retailers like the owner of The Broadway received $291.9 million in commission in fiscal 2017, and $303 million in fiscal 2018. About 73% of gross revenue is paid out in prizes.
“Even as the Lottery continues to deliver a significant profit, growth has not kept up with inflation, nor has it met the need for resources at the local level,” Ms. Goldberg, the state treasurer, stated in her written testimony at the hearing on Monday. “To maximize returns, the Lottery needs the flexibility to meet the demands of a changing marketplace.”
Several states, including New Hampshire, Illinois, Michigan, Georgia and Kentucky, offer games online.
“It’s a necessary thing. We want to be online for the same reason as Amazon and Walmart,” said Michael Sweeney, executive director of the Massachusetts Lottery. “The simple reality of the world today is people have expectations to be able to view, research and purchase products online, particularly on a mobile platform so they can access by their phone.”
Mr. Sweeney said the hope is to be able to offer a full menu of lottery products. No decision has been made regarding Keno, which is successful in restaurants and bars. Draw games such as Mega Millions and Powerball would be included. He is not sure how scratch tickets would work.
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