Massachusetts is set to expand its gaming offerings with the introduction of an online lottery, following the approval of Governor Maura Healey’s 2025 budget. While the online lottery won’t officially launch until 2025, this timeline allows regulators the opportunity to carefully plan and address any potential concerns prior to its debut. Once operational, Massachusetts could boast one of the largest online lottery markets in the United States.
With an existing sports betting framework and three retail casinos already in place, the addition of an online lottery positions Massachusetts to keep pace with the rapidly evolving national gaming landscape.
Projected Revenue and Comparison to Other States
Legislators in Massachusetts anticipate that the online lottery market could generate approximately $100 million annually, now that it has been included in the state’s budget. However, given the Massachusetts Lottery’s vast scope, actual revenues could far exceed this conservative estimate.
Peter Brennan, the Executive Director of the New England Convenience Store and Energy Marketers Association, emphasized that comparing Massachusetts to other online lotteries, such as New Hampshire’s, is misleading. “The Massachusetts Lottery is uniquely situated — it’s much larger and more successful. Comparing the revenues of Massachusetts to New Hampshire is like comparing apples to oranges,” he stated.
Data from USA Today highlights Massachusetts residents as the highest spenders on lottery tickets in the nation. In 2022, each adult in the state spent an average of $1,037 on lottery tickets, outpacing Georgia, the second-highest spender, by 41.5%, with an average of $607. In comparison, residents of New Hampshire spent only $415 per adult in the same year.
The Potential Size of the Online Lottery
So, how significant could the Massachusetts online lottery become? Georgia generated nearly $310 million in 2022 from its online lottery, while New Hampshire brought in around $260 million. Given these figures, it seems the initial $100 million revenue projection is likely to be significantly understated.
Skeptics often argue that online lottery options may siphon sales away from retail outlets, but evidence from states like Georgia and New Hampshire suggests otherwise. In both states, retail lottery sales have actually increased alongside the introduction of online options. Pennsylvania Lottery Press Secretary Ewa Swopehe echoed this sentiment, stating, “Data shows the opposite is true. By offering online sales, we build relationships with new players, which encourages them to visit retail stores and participate in our games.”
However, Brennan cautioned that much of this data is still relatively new. “Most people claim that online lottery hasn’t impacted in-store sales, but it’s early in the game. We’ll need to see how the trend evolves over the next decade to truly understand the long-term effects,” he warned.
Learning from Other States: Regulatory Insights
As Massachusetts prepares for its online lottery launch in 2025, many regulators are looking to states with existing online lottery programs for guidance.
Christian Teja, the Massachusetts Lottery Director of Communications, noted the advantage of learning from other states: “With iLottery already implemented in various states, we can observe their experiences and hopefully apply those lessons to our own regulatory framework.”
Massachusetts Senate President Karen Spilka highlighted the proactive measures taken to ensure a safe online lottery experience. “We negotiated better protections for iLottery, including raising the age limit from 18 to 21, prohibiting predatory advertising aimed at minors, and implementing additional controls for a safer launch,” she explained.
Further regulatory methods may be explored as time goes on. States like Pennsylvania and New Hampshire have introduced voluntary self-exclusion lists and mechanisms for players to set limits on spending and playtime. The New Hampshire Lottery also allows for player blockades from its digital platforms if necessary.
Despite potential future regulations, Massachusetts Lottery Executive Director Mark William Bracken expressed confidence in their readiness: “We are prepared to implement a safe and reliable online lottery that will generate significant resources for vital childcare services, which are critically needed across the state.”
Source : https://www.playma.com/news/massachusetts-online-lottery-could-become-most-successful-market-in-us/