Massachusetts Delays Online Lottery Launch to 2026 Due to Funding Issues

Massachusetts residents anticipating the arrival of the state’s online lottery will now have to wait until April 2026, as funding delays have pushed the original launch timeline back by several months. Initially projected to go live by the end of 2025, the online lottery system is now expected to be operational in the second quarter of 2026, according to state officials.

During a recent meeting at the Greater Boston Chamber of Commerce, State Treasurer Deborah Goldberg, who chairs the Massachusetts Lottery Commission, confirmed the delay. “So, initially, we were feeling it was going to be about 16 months, and it’s probably going to take a little bit longer,” Goldberg stated. The extended timeline has set back the state’s efforts to modernize its lottery offerings.

Funding Delays Stalling Development

The delay is primarily due to the state not yet receiving the $2.5 million in funding necessary to begin developing the online lottery system. Although the Massachusetts legislature ed the bill authorizing online lottery sales in June 2024, and Governor Maura Healey signed it into law the following month, the financial resources needed to initiate the project have not been allocated.

Lottery Executive Director Mark Bracken underscored the importance of securing the funds before work on the system can begin. “Unfortunately, we have not received funding yet to do anything with online Lottery,” Bracken remarked. The 16-month countdown to the system’s launch will only begin once the funding is in place. “We’re waiting for the House and Senate to take that fiscal year 2024 close-out budget,” he added, emphasizing that the budget approval is critical to moving forward.

Despite the lack of funds, the Massachusetts Lottery has already issued a Request for Proposals (RFP) to identify potential vendors who will design and implement the system. This preparatory step ensures that once funding is secured, the state will be ready to move quickly toward the development phase.

Revenue Projections Adjusted

With the delay in the launch date, state officials have also revised their revenue projections for the online lottery’s first year of operations. Initially, the Massachusetts Lottery was expected to bring in $100 million in revenue during the first fiscal year. However, with the launch pushed back to 2026, those estimates have been lowered to $70 million. By the second fiscal year, the revenue is projected to reach $180 million, followed by $230 million in the third year.

The revenue generated from the online lottery will be directed toward ing early childhood education and care programs in Massachusetts. However, the delay means that significant contributions to these programs won’t begin until at least 2027.

No Impact on Traditional Lottery Sales

One concern raised by some stakeholders is whether the introduction of an online lottery system might hurt traditional, in-person lottery sales. In response, both Goldberg and Bracken reassured retailers that launching online lottery sales would not negatively impact brick-and-mortar operations. In fact, Bracken cited data from other states where online lotteries are already operational, showing that physical lottery sales have continued to thrive alongside digital offerings. “In every state that had online lottery, their retail sales grew at a faster pace than states that didn’t have online lottery,” Bracken explained.

To further alleviate concerns, Bracken noted that online players will be able to redeem bonuses only at physical retail locations, ensuring that retailers benefit from increased foot traffic generated by online lottery sales. This approach aims to create a balanced relationship between digital and traditional lottery sales, fostering growth in both areas.

The online lottery system, once operational, will allow Massachusetts residents to purchase lottery tickets and play instant games from their mobile devices and computers. These instant games will function similarly to online slot machines, providing a new and modernized way for players to engage with the lottery.

Source:

When Massachusetts Expects to Launch Online Lottery, wbsm.com, October 21, 2024.