More State Lotteries Could Start Going Online

By Mike J. Davies Editor in Chief at Casinos.US Updated: 05/08/2020

Mike J. Davies Editor in Chief at Casinos.US See Full Bio

Mike is our Senior Editor and experienced gambling strategist. A former hockey player, he transitioned to the casino industry after finishing his B.A. in English. Blackjack systems, online casino guides, gambling terms, and more – Mike is familiar with all fine points of gambling.

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Lottery, Photo by www.123rf.com

As the coronavirus pandemic continues to wreak havoc worldwide, many businesses and industries are suffering. This includes the casino gaming industry, with many casinos being forced to close their doors as a result of the pandemic. The closure of retail establishments has further impacted on lottery gaming in states across the USA.

While many want to continue playing lottery games, a lot of those people are wary about going out to participate in them. This has raised questions with regard to whether state lotteries should start thinking more seriously about offering online facilities.

Feedback from the SBC Digital Summit

During the inaugural SBC Digital Summit, which took place recently, one topic that was discussed was ‘State of Play – US Lotteries During the Coronavirus’. Participants of the summit took part digitally to ensure social distancing measures were adhered to. One of the participants was the CEO of the Maryland Lottery, Gordon Medenica. In relation to the Maryland Lottery, he said:

We were very much focused on the casino closures, and then we found that two days after the casinos were closed, the bars and restaurants were closed – and they represent about 15% of our retailers. We saw an immediate hit.

He then went on to say that revenues had declined exceptionally quickly. Maryland saw sales decline by 20% in the first week. By week three, they were down 30%.

Lotteries Classed as Essential Services

While casinos have had to close their doors during the lockdown, state lotteries have been able to continue operating. This is because they are classed as an essential service because of the money that is raised for charities at a time of need. However, in most states, people looking to play the lottery need to purchase their tickets in person.

With many people confined to their homes or too nervous about going out, this has taken a big hit on state lottery revenues across the board. At present, eight states offer online lottery gaming. There are New Hampshire, Pennsylvania, Georgia, Kentucky, Illinois, Virginia, North Carolina, and Michigan.

For those that do not operate online games, revenue losses have been significant. This means that the good causes that state lotteries contribute to are also negatively impacted due to lost revenue. Some now believe that these losses will push more states into offering lottery games online rather than expecting people to risk their health to go and make purchases in person.

The Future of Lottery Gaming

Another participant to take place in the summit was the Oregon Lottery CEO, Barry Pack. He said that it was vital for state lottery executives to start thinking about what the world will be like after lockdown and how they would fit into this new version of normality. He said that executives needed to be more creative and think about customer experiences. He added that lottery directors needed to work out what needed to be done moving forward.

In the meantime, lottery games have already been impacted in terms of the jackpot guarantees. Both the Powerball game and the Mega Millions no longer have a guaranteed minimum jackpot nor minimum increases in jackpots.