State officials fear lottery profits are in jeopardy because of a recent Justice Department decision.
FILE - In this Aug. 22, 2017 file photo signs display lottery prizes in Chicago. A recent opinion by the U.S. Justice Department has put a handful of states in danger of losing at least $220 million in lottery profits that they use to fund college scholarships, senior citizen services and a variety of other programs. The states are anxiously waiting on a clarification from the Justice Department about its opinion that could outlaw lottery tickets sold online.
The department in 2011 concluded that online gambling within states that does not involve sporting events would not break the law. But the agency changed its mind in November, explaining in a written opinion that the law applies to any form of gambling that crosses state lines.Seven states now sell lottery tickets online and others offer residents internet-based lottery subscription services. They are fearful that those lottery games are now illegal under the opinion.
Some believe the shifting sentiment in the two Justice opinions is the result of the influence that GOP megadonor Sheldon Adelson exerts over the internet gambling debate. Data gathered by The Associated Press show states stand to lose over $220 million in net profits annually if the Justice Department zeroes in on single tickets sold online or more than $23 billion if the agency takes a broad interpretation that would prohibit all lottery-related activities that use the internet, including popular games like Powerball.
The internet is crucial for the lotteries. Not only are some tickets sold online and payment processing companies use it for debit and credit card payments, but backup systems needed in the event of bad weather are located in other states. Communications can cross state lines due to the way the internet is routed.
In Massachusetts and Connecticut, lawmakers are considering whether to legalize sports betting and lottery directors there want to offer online lottery games.
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