Minnesota Votes to End Online Lottery

Senators approve bill which would end online games, as well as those at ATMs and on fuel pumps.

May 14, 2015

ST. PAUL — Minnesota senators left little doubt that they think the state’s lottery director overstepped his authority in allowing online games, as they voted to outlaw them earlier this month. The lottery put games online several years ago. Sponsored by Sen. Lyle Koenen, the bill passed by a 56-8 vote, forbidding the Minnesota Lottery from offering games online, at ATMs and on fuel pumps.

“It is very important for the Legislature to exercise its authority to regulate the lottery,” Koenem was quoted as saying in news reports. “I believe the lottery exceeded its authority when it began to sell its instant-win tickets online.”

However, Minnesota Governor Mark Dayton has not yet committed to signing the bill. He vetoed a similar bill last year, but has recently said he will wait to see what the bill looks like if it passes before deciding whether he would sign it. A similar bill awaits action in the House, which like the Senate, easily passed the provision a year ago.

A failed amendment to the bill would have amended it to pay fuel retailers that could lose money if the state ends lottery sales at pumps. “I believe that business owners acted in good faith,” said Sen. Greg Clausen in defending his proposed amendment. “So it is not their fault if the state abruptly stops pump lottery sales.” Clausen said he has received reports that it could cost up to $80,000 for stores to replace fuel pumps that have lottery terminals.

Legislators who opposed the bill pointed out that if the state ends its contract with the lottery’s game operator before it expires in 2018, the state might have to pay fines of up to $12 million. Other legislators place the estimate at closer to $3 million and cited a $30 million fund that the lottery could use to cover the cost of ending the contract, rather than passing it on to taxpayers.

Lottery Executive Director Ed Van Petten was not happy with the bill’s passage, according to local news reports. “We remain committed to working with the Minnesota Legislature to ensure the Minnesota Lottery is the best run in the nation and delivers on its mission to provide important funding to the state’s general fund and environmental trust funds,” Van Petten said.

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