Bill to Block Online Lottery Sales Advances in New Jersey
Expertise: iGaming, Online casinos
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Bill A3759 has been unanimously passed in an Assembly committee meeting, bringing it closer to being voted on by the full Assembly.
Proposed by Assemblyman Sterley Stanley, the measure seeks to restrict the New Jersey State Lottery Commission from selling tickets through the internet.
The New Jersey Lottery announced in August 2023 that it would start selling tickets online to players. The operator initially targeted a fall 2024 launch but has since rescheduled the rollout for 2025.
However, traditional retailers, concerned about the potential impact on their businesses, have opposed the move.
It’s not just the loss of the sale of the lottery [ticket] — it is all the ancillary sales for somebody that used to go to that store for that ticket. They’re buying their groceries, or a cup of coffee, or fuel, so that is a significant loss.
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The New Jersey Lottery contends that physical retailers would not be negatively affected, citing sales growth by brick-and-mortar retailers in states with online lottery options surpassing those without this feature.
We looked at the experiences that other lotteries have had launching online games and saw sales of all lottery products grow at brick-and-mortar retailers. The Lottery believes that this increase was directly related to the introduction of online sales and by appealing to the next generation of lottery players. These new lottery players, primarily under the age of 40, who are more online, are essential to the long-term viability and success of the lottery.
While bill A3759 will prevent the New Jersey Lottery from selling lottery tickets online, it doesn’t restrict registered courier services from offering lottery tickets through the internet. Licensed lottery couriers operating in New Jersey would continue to offer players a means of purchasing lottery tickets digitally.
The next steps for the bill include a second and third reading on the Assembly floor, after which it will be put to a vote by the entire Assembly. If it passes, it will then be sent to the Senate for a vote and, if approved, will be presented to the Governor for signature.
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