Minnesota paperless, instant-win Lottery games to end

May 15, 2015, 8:45 am (7 comments)

Minnesota Lottery

ST. PAUL, Minn. — The Minnesota Lottery's experiment with paperless, instant-play tickets sold over the Internet and other platforms will come to an end as Gov. Mark Dayton decided Thursday against vetoing legislation suspending the games.

The Legislature had sent Dayton the bill to stop the virtual games after overwhelming votes in the Senate last week and the House on Thursday. Spokesman Matt Swenson said Dayton would defer to their will rather than veto it, which could have subjected him to a possible override attempt.

After it goes into effect early next week without Dayton's signature, the lottery must halt the games within four months. The games were seen as a way to connect with next-generation players who do much of their business on laptops, tablets and smart-phones.

Dayton vetoed a similar bill last year that would have suspended the electronic "scratch-off" ticket sales at gas pumps, through ATMs and over the Internet. Lawmakers had adjourned for the year so lacked they chance to override him.

Lawmakers insist the lottery overstepped its bounds by branching out into electronic games without explicit approval. When those games went live early last year, Minnesota was the first state to sell instant-play games on the Internet in addition to a subscription service for draw games like Powerball.

"Every piece of gaming expansion or gaming activity has come through the Legislature. Big or small," bill sponsor Rep. Tim Sanders, a Blaine Republican, said. He said it's up to lawmakers to decide how far gambling goes.

The four-month window is meant to give the lottery time to get out of its contracts with certain vendors.

"It's not just turning off a switch," said Lottery Director Ed Van Petten. "We'll have to work with our vendors on that issue and determine what is and what isn't possible."

Still, lottery officials have warned that the state could get sued and face up to $12 million in early termination damages. Van Petten said about $850,000 worth of e-scratch tickets have been sold in the first 10 months of this fiscal year.

Rep. Joe Atkins, DFL-Inver Grove Heights, said he was uncomfortable breaking the contracts and joined in an unsuccessful push to offer the lottery even more time.

"When you give someone your word, when you shake their hand you stick by it," Atkins said. "When you shake someone's hand and you come to an agreement, you honor that agreement."

The bill would let ticket sales for draw games continue over the Internet, which has resulted in $1.5 million in sales so far this fiscal year. But Van Petten said those would be in doubt as well because they're managed by some of the same vendors as the instant-play games.

"I can't imagine our vendors would continue the contract if we breach part of it," Van Petten said.

StarTribune

Comments

music*'s avatarmusic*

 The Minnesota Legislature is flexing it's muscle.  This will be an example for other States.  The Governor is yielding to the People's representatives.  Smile

Technut's avatarTechnut

My guess is either the reps don't like the setup or it's not going as well as they thought it would.

Todd's avatarTodd

Quote: Originally posted by music* on May 15, 2015

 The Minnesota Legislature is flexing it's muscle.  This will be an example for other States.  The Governor is yielding to the People's representatives.  Smile

Do you really think the people want the government to restrict them from playing online?  Personally, I think it's a case of the people's representatives not doing what the people want.  A bad trend for the lottery?  Let's hope it's not a trend.

cbr$'s avatarcbr$

Van Petten, is correct. In part it is a breach of contract with their vendors. Minnesota Lottery can be sue for the vendors losses. Or sued for the amount of money the vendors should have been given, if the contact was successfully finished.

music*'s avatarmusic*

 The legislature wants to be in the decision making process. They are protecting their turf. 

  When the voters want online Power Ball and more then they will tell their representatives in many ways.

 I do not think that this will be a trend.  I love this fifty State system we Americans have.Smile

Todd's avatarTodd

Quote: Originally posted by music* on May 15, 2015

 The legislature wants to be in the decision making process. They are protecting their turf. 

  When the voters want online Power Ball and more then they will tell their representatives in many ways.

 I do not think that this will be a trend.  I love this fifty State system we Americans have.Smile

Minnesota Lottery Director Ed Van Petten is the one who started the new sales at gas stations and online.  He was responding to what the players want -- and obviously players have been responding positively through increased sales.

It is the legislators in almost every case (in every state) who don't understand the lottery or lottery players, and are making political decisions based on things that have nothing to do with the lottery -- or the lottery players' wishes.  I can't tell you how many times I have seen legislators block the very things that people want, because some opposing minor constituency is important to their re-election.

I agree with you in principle about checks and balances in government.  But I disagree with you that legislators should meddle in the affairs of the lottery.  The lottery folks are professionals who know best how to sell their games; let them do it.

music*'s avatarmusic*

I Agree!  Todd, You have won the discussion.   Those pesky politicians who are vote hungry. 

 Like Sir Winston Churchill said," Democracy is a terrible form of government until you look at all the alternatives."

  Thank God we live in a Republic and not an insane Democracy.

End of comments
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