Online Gambling is Future for State Lotteries
Many states have relied for years on lottery gaming to help round out their budgets. With recession bring serious shortfalls to state funding, expansion of lottery programs, including significant online gambling, may be one method used to draw additional revenue.
A study by consulting firm Frost and Sullivan showed that lotteries have a tendency to appeal to older players, as the most frequent patrons are thirty-five or older. The demographic between eighteen and twenty-four play the lottery least of all legal age classifications.
The younger generation is far more Internet-savvy than previous age groups. The study found evidence that increased advertising and marketing online would likely result in greater participation by youthful players.
Further, lottery sales are often driven by convenience, a major reason why outlets are often located at gas stations and in drive-through stores. Internet sales would be unbeatable for convenience... if the UIGEA doesn't inadvertently interfere.
Presently, both North Dakota and New Hampshire are experiencing difficulties processing lottery credit card payments, as card companies reject the transactions as illegal gambling. The UIGEA expressly exempts state lottery sales from its prohibition, but card companies are unable to distinguish which payments to allow.
Forty-three states in the US run lotteries, and depend on the revenue to fund essential services, especially education. As states rely more and more on the potential expansion of sales offered by the Internet, the deleterious effects of the UIGEA will deprive children of decent learning opportunities.
Even the state governments are about to join the clamor to repeal the UIGEA. When that happens, expect lottery sales to move online, and state funding to get a much-needed jolt.
