Bill to allow online subscription purchases for state lottery draws draws mixed reaction from retailers and the Lottery

Delegate Edith Patterson presented House Bill 618 on Feb. 6 to permit the Maryland Lottery to accept online payment for lottery subscription plans (for jackpot games such as Powerball and Mega Millions), replacing a mail-only subscription process that currently requires printing a form and mailing a check or money order.

Patterson and Lottery representatives said the existing subscription process is slow and cumbersome and that an online option would modernize the program, improve customer experience and could increase subscriptions and revenue. The agency explained current subscriptions are offered for Cash For Life, Multi Match, Mega Millions and Powerball and that the bill would change only the payment/acceptance step, not game eligibility or other subscription rules.

Retailers and members of the committee raised concerns that online subscriptions could reduce foot traffic and commissions for licensed lottery agents, who receive a commission on sales and a smaller commission when processing claims. Lottery staff said the agency is exploring voucher models and retailer inclusion so retailers could receive commission credit for subscription sales via a retail-printed voucher; the agency said including retailers in system design is possible and under discussion.

Committee members pressed the Lottery on whether winning subscription payouts could still be processed at retail; agency staff said subscriptions currently trigger a state check for winnings of $100 or more mailed to the subscriber and that including retailer payouts in a new model would require further design work.

No committee vote was recorded; Delegate Patterson said she and Lottery staff would work on amendments, including options to protect retailer commissions.