More Massachusetts Lottery Buyers Move Ticket Purchases Online

Massachusetts is experiencing a shift in lottery momentum from traditional in-store kiosks to online platforms. A growing number of customers are eschewing conventional convenience stores and gas stations in favor of online terminals.

A WBUR report noted that in North Andover, for example, Winners Corner leads state lottery sales through October. More than $49 million was sold online and in person, according to state lottery records, surpassing Ted's Stateline Mobil in Methuen. Ted's Stateline Mobil was previously the largest seller of lottery tickets in Massachusetts, according to former owner Tony Amico.

This change in lottery buyers' habits has prompted Massachusetts State Lottery officials to begin selling lottery tickets online itself next summer, introducing competition for existing online couriers and retailers.

State Lottery Executive Director Mark Bracken said most traditional players still purchase tickets in retail stores, suggesting online sales may not cannibalize in-store business. However, courier regulation could be reconsidered in the future.

“Most of the time, when someone's a retail player, they stick with retail,” he told WBUR.

Industry leaders like Lotto.com CEO Thomas Metzger said that online sales attract new customers and drive growth, rather than taking business away from existing brick-and-mortar retailers.

“We bring in these new customers who maybe have never played the lottery or haven't played in a long time,” he explained to WBUR.

Lotto.com and Jackpocket are examples of online platforms allowing customers to order tickets via apps, which are then scanned and verified. Smaller wins can be cashed digitally, while larger prizes go through the lottery office.

Online platforms earn revenue through service fees, while retailers earn commissions and bonuses on ticket sales. Lotto.com reportedly adds a service fee of 12% to 30% per order.

To receive a lottery retail license in Massachusetts, companies must have a physical location that sells products other than lottery tickets to the public. Winners Corner in North Andover, for example, sells board games and cards at its store, which also houses drain-cleaning, landscaping, and pest-control companies.

Amico, who operated Ted's Stateline Mobil for 24 years before selling the business in April, is worried about competition from online lottery ticket sales.

Robert Mellion, executive director of the Massachusetts Package Stores Association, said he's concerned traditional stores will lose foot traffic to online competitors. Customers who buy lottery tickets often purchase something else when they visit a store, like a case of beer or some bottles of wine, he explained.

When Massachusetts begins selling tickets online next year, it will compete with existing online lottery companies and retailers. But Bracken, the Massachusetts Lottery, plans to offer new games to complement traditional jackpot drawings like Mega Millions and Powerball.

According to Bracken, Massachusetts exhibits high per-capita lottery spending. Residents average more than $840 annually on tickets, according to state lottery records.