The Ohio Study Commission on the Future of Gaming recently published a report on its findings which included testimony from many stakeholders and legislators.
While many forms of gaming were analyzed, the Ohio Lottery online quickly surfaced as one of the most prominent topics.
With Ohio sports betting now online and the consumer base looking for more convenient options, there seems to be a growing appetite to legalize iLottery options.
Online lottery becomes primary focus of Ohio Study Commission report
The Study Commission, consisting of 11 Ohio lawmakers and regulators, had four points of emphasis:
- Examine the current status of the statewide lottery and the future of the lottery industry and make recommendations to the General Assembly.
- Examine the implementation of sports gaming and the future of the sports gaming industry and make recommendations to the General Assembly.
- Examine the current status of casino gaming in this state and the future of the casino gaming industry and make recommendations to the General Assembly.
- Examine the current status of horse racing in this state and the future of the horse racing industry and make recommendations to the General Assembly.
In that the Ohio Lottery is fully self-sufficient and does not rely on taxpayer dollars, the study regards its success as paramount. The lottery is also one of the biggest money generators for the Ohio public school system.
To further those ends, it seems legislators are leaning toward legalizing iLottery soon.
The report also discussed the legalization of online casino games, suggesting Ohio online poker as an introduction to iGaming legalization.
Legislators seem to lean toward supporting Ohio iLottery legalization
As other forms of gaming become available online, many lawmakers are beginning to consider the same fate for the Ohio Lottery.
To that end, Senator Nathan Manning has tried in past sessions to legalize iLottery options. It did not pass, but his bill — SB 269 — appeals to both retailers and the Ohio Lottery. That could be a starting point for a future bill. Manning said:
“In the short term, I do believe we should move forward with a portion of SB 269 and allow Lottery to offer draw games and multi-state games online. These products are already available online through third party venders, and it is common sense to allow Lottery to offer them directly to consumers.”
Those concerned about a legal online lottery pointed to the potential negative repercussions current lottery retailers might experience. Senator William P. DeMora included that worry in his own testimony, saying:
“We cannot risk the position of these critical institutions by making them irrelevant, with Ohioans who want to gamble turning to their phones instead of supporting brick-and-mortar stores.”
That perspective, however, has proven faults. State Representatives Jay Edwards, Jeff LaRe and Cindy Abrams provided data that disproves those concerns, noting:
“For example, Pennsylvania, which launched iLottery in 2018, saw an increase of almost 20% of sales in traditional retail stores. Furthermore, Kentucky, which launched iLottery in 2017, saw an increase of 56% of in-store lottery sales since the launch of iLottery.”
Data proves to offer little merit to those concerns. However, some legislators still feel that more can be done to ensure brick-and-mortar retailers can grow alongside a legal online lottery. State Rep. Bride Rose Sweeney pitched some ideas to accomplish that goal:
“One suggestion to protect businesses and workers is temporarily increasing the base commission for in-person lottery sales or allowing retailers to share a percentage of iLottery revenue to compensate for any potential revenue loss. Another worthwhile proposal is to differentiate the types of games offered on an iLottery platform so that some games can only be found in brick-and-mortar venues.”
Overall, the prevailing opinion shared by most legislators was that iLottery would help, not hurt, Ohio.
Ohio Lottery & stakeholders agree: iLottery complements retail lottery retailers
Obviously, the Ohio Lottery is in favor of legal iLottery games. What was more interesting from its testimony is additional data proving that iLottery helps lift retail lottery sales.
Testimony submitted by the Director of the Ohio Lottery Commission, Michelle Gilcrist, notes that iLottery actually brings new customers into the fold rather than taking customers from retail locations.
“As data in other states show, iLottery brings in a new player. In fact, traditional lottery game sales have grown—and often grown at a faster rate—in brick-and-mortar stores after iLottery was launched. Research shows that iLottery allows lotteries to attract new players and enables lotteries to offer better cross-promotions that drive players into brick-and-mortar retailers too.”
“This omnichannel approach allows lotteries to support and grow retail sales and meet the evolving needs of today’s consumer.”
The Ohio Lottery Commission explained clearly that it needs online offerings to continue raising money for Ohio education.
“As a business, the Ohio Lottery must adjust to meet the growing needs of consumers as the State relies on its profits for education funding.”
Additionally, the Ohio Council of Retail Merchants shared its input as a somewhat unexpected proponent of iLottery. The council expressed gratitude toward the Senate for seeking so much input from retailers thus far, saying:
“In that spirit, we appreciated the thoughtful approach of Senator Manning and Senate leaders through the Senate’s passage of Senate Bill 269 from the 134th Session of the General Assembly. Senators sought retailer input throughout the process. SB 269 would be a great starting position for conversations regarding iLottery or other online games.”
With so many stakeholders supporting legalization, the stage is now set for legal iLottery options to come to Ohio.
