Online lottery ban bill advanced by House panel

Published 10:03 am Friday, April 25, 2014

By Doug Belden

Pioneer Press

A bill that would ban online lottery ticket sales advanced Thursday in the Minnesota House.

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The bill got the OK from the House Commerce committee and heads now to Rules. If approved, the next step would be the House floor, said bill sponsor Ann Lenczewski, DFL-Bloomington.

Meanwhile, the issue could be part of House-Senate conference committee negotiations on the tax bill, Lenczewski said. A meeting of the conference committee was scheduled for Thursday afternoon.

In addition to banning online lottery ticket sales, the Senate version would eliminate “Play at the Pump” gas-station sales and ATM sales.

Senate Majority Leader Tom Bakk, DFL-Cook, has said he thinks the bill will pass in the Senate.

The Minnesota Lottery has been offering lotto-style games on the Internet for more than three years. In early February, it started offering online scratch-off games, which generated a backlash from faith groups and other opponents as well as lawmakers who say lottery officials overstepped their authority in implementing the games. The bill would eliminate both online gaming options.

Lottery officials have argued they are authorized to proceed with online games under the 1989 law setting up the lottery.

Whether or not lottery officials had the authority to set up the games, “this is our responsibility to make this decision,” Lenczewski told committee members. “This was thrust upon us.”

Minnesota Lottery executive director Ed Van Petten warned of “unknown ramifications” if the online service is terminated.

About 8,500 people have subscription accounts for which they pay in advance and submit the numbers they want to play, he said. What legal liability would the state face if those contracts were canceled?

David Gale, executive director of the North American Association of State and Provincial Lotteries, told committee members that if Minnesota hopes to have a customer base in 10 years for its lottery, it needs to consider moving online.

But Rep. Greg Davids, R-Preston, said the lottery had no authority to make such a move on its own, and he warned of harmful consequences.

“This is online crack. This is addictive and this is going to destroy families,” Davids said.