After years of lobbying, cajoling — virtually pleading — state lawmakers back in 2024 finally granted the state Lottery an online presence.
The fiscal 2025 budget signed by Gov. Maura Healey did just that.
Lottery officials initially said they planned to launch their “iLottery” in late 2025, then pushed back the timeline to an April 2026 start, and then again until “the summer of 2026,” with no revenue expected from the new stream until the budget year that begins July 1.
Officials at the time said that when the “iLottery” goes online, it will be available to players 21 and older, instead of the minimum age of 18 for sales in stores.
But unlike the revenue from the legacy Lottery, the proceeds from online Lottery ticket sales will support early childhood education and care.
And though at the time it remained a highly profitable enterprise, Treasurer Deb Goldberg, who oversees the Lottery, had her sights set on its future viability.
“This will allow the Lottery to keep pace with its competition and reach newer audiences,” Goldberg said in a statement.
And now preparations have begun for the imminent rollout of the initial online Lottery offerings.
The Lottery Commission voted Tuesday to authorize regulatory amendments that Executive Director Mark William Bracken said would set rules and regulations for iLottery games.
The Lottery tentatively plans to begin offering some of its products online and through its app this summer, marking another expansion of the state’s gaming ecosystem.
The regulatory amendments approved Tuesday allows two existing draw games — Megabucks and Mass Cash — also to be available via the iLottery platform.
They also authorize products for sale exclusively through the iLottery system: electronic instant-win games similar to scratch tickets, and new three- and four-digit daily numbers games called Mass 3 and Mass 4.
Not everyone shares the Lottery’s enthusiasm with this turn of events.
Retailers have historically counted on scratch-ticket and numbers-game players to visit stores to buy tickets.
And although those options will remain available, the new online games will let players purchase tickets remotely.
Some retail outlets say online gaming will dramatically impact mom and pop stores’ bottom lines.
This coordinated resistance by retailers contributed to lawmakers’ past reluctance to approve an online Lottery.
But far from hurting retail sales, Lottery officials at the time of the Legislature’s approval predicted potential benefits for brick-and-mortar outlets.
“If you look at the states that have implemented iLottery, the retail sales have continued to grow,” said Christian Teja, director of communications for the Massachusetts State Lottery Commission.
The regulations say specific game prices, rules and prize structures will be disclosed in individual administrative bulletins issued by Bracken. The regulations also give Bracken the power to start sales of the two new games “on a date to be determined by the Director in their discretion.”
Online sales are estimated to bring in $70 million in net profit in the first year of operation.
Treasurer Goldberg previously laid out her expectations for online Lottery revenue: more than $180 million by year three, more than $230 million in year five, and almost $360 million in year 10.
The online gaming announcement comes at a time of plateauing Lottery activity.
Bracken indicated that the $564.3 million in Lottery sales last month represented a $4.9 million year-over-year decline, though the Lottery saw a $3.3 million increase in net profit for the month due to differences in prize payout volumes and rates.
Lottery sales are down $52.9 million or 1.1% through the first 10 months of fiscal 2026, Bracken said. He added that the Lottery’s still running ahead of last year’s profit pace by about $6.3 million.
Goldberg has said the Lottery is on track to return $1.05 billion in fiscal 2026 for the Legislature to use as local aid; she also projected the same total for fiscal 2027 despite the introduction of online sales.
Those stagnant Lottery sales numbers constitute a continuation of last fiscal year’s results.
Every Lottery offering but one saw their sales decrease in April 2025, reflecting a months-long trend.
The Lottery’s $454 million in sales that month fell $29.3 million, or 6.1%, below sales in April 2024.
It was the fourth consecutive month that year-over-year sales fell. Only Keno, which saw its sales climb by 5.9% to $105.7 million for the month, bucked that downward slide.
The Lottery’s estimated profit for April 2025 was $74.1 million, compared to $82.6 million in April 2024.
Through the first 10 months of fiscal 2025, the Lottery sold more than $4.89 billion worth of its various products. That trailed fiscal 2024 by $178.9 million or 3.5%, through the same 10-month period.
The introduction of online gaming might just be the catalyst the Lottery needs to jumpstart overall sales.
Whether that’s sustainable remains to be seen.
What’s not in dispute: the online Lottery must compete with the various sports betting platforms and betting kiosks at the three Massachusetts casinos for gambling dollars.
How that all plays out depends on just how far the appetite for legalized gambling extends.
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