Compulsive gambling groups, convenience store owners not sold on idea
Jingesh Patel hands James Cavallaro his lottery entries. Lottery tickets may soon be available online. That has convenience store owners like Jignesh Patel, who owns a Krauszer's store in South Amboy, nervous.TRENTON — The days of being forced to stand in line at a convenience store to wait for your lottery tickets to pop out of a machine may be numbered.
New Jersey lottery players could skip the trip to the store and buy their tickets online or over their cell phones under controversial legislation being considered in Trenton.
Assemblywoman Annette Quijano (D-Union) proposed the change last year after she failed to make it to her local lottery retailer in time to buy a ticket.
"I said, ‘Well, why can’t I purchase it on my own computer or my own smart phone?’" Quijano said.
While Quijano believes online lottery sales would be a winner for the state, not everyone is sold on the idea. Compulsive gambling groups warn selling lottery tickets through a website or via text message would put teenagers and problem gamblers at risk.
Convenience store owners also say they would lose out on sales of food and coffee to regulars who come in for their Pick-3s and Pick-4s.
"Online lottery sales will retard the sales of all items," said Sal Risalvato, executive director of the New Jersey Gasoline, Convenience, Automotive Association. "We make a nickel on the lottery ticket but a dollar on the cup of coffee. That is what is problematic to us."
The New Jersey Lottery Commission has not taken a position on the proposal. The seven commission members, who are scheduled to meet today, have only had informal discussions about offering online ticket sales, said Frank Ragazzo, the commission’s chairman.
Other states are betting on online sales to help boost lottery revenue. In November, Minnesota began offering online ticket subscriptions for Powerball, Mega Millions and other games. New York and Maryland are considering similar proposals.
Under Quijano’s bill, which has already passed the Assembly gaming committee, New Jersey residents would be permitted to buy state lottery tickets via the internet, e-mail, text messaging or "other electronic means." The lottery commission could also pay winners through online lottery accounts or by direct deposit into their bank accounts.
An identical bill, introduced by state Sen. Raymond Lesniak (D-Union), is pending in the Senate. Neither bill specifies which lottery games would be available online.
Quijano is in talks with lottery vendor groups to gain support for her bill. The legislation has already been changed to give 5 percent of online sales to lottery retailers to help appease store owners who say online ticket sales will cut into their profits. Stores receive 5 percent of every in-store lottery sale.
The proposed legislation was also amended to ban the use of credit cards for online lottery sales. Only debit cards would be permitted, making it more difficult for players to go into debt buying tickets.
According to compulsive gambling experts, online lotteries put problem gamblers at an increased risk because they can gamble by themselves in front of their computers for hours at a time.
"We are concerned that at the minimum there be an option for persons with known gambling problems to self-exclude, particularly people in early recovery," said Donald Weinbaum, executive director of the Council on Compulsive Gambling of New Jersey.
In Atlantic City, compulsive gamblers can self-exclude by putting themselves on a list to be banned from playing at casinos. A proposed amendment to Quijano’s bill would require the New Jersey Lottery Commission to add a similar self-exclusion option for online lotteries.
Weinbaum also questioned how the state would keep people under 18 from buying lottery tickets online or by text message.
"This is going to be very difficult to police," Weinbaum said. "We’ve urged that there be preventive programs and that awareness messages be included."
At Amboy Food Liquor and News in South Amboy, owner Gary Patel said he was worried about what online lottery sales could do his revenues.
"The lottery is the main source to bring customers in," Patel said.
Customer Mary Anne Baranowski, 59, said she had mixed feelings about buying her lottery tickets over a computer.
"I would be hesitant about purchasing lottery tickets online because of security reasons," said Baranowski, of South Amboy. "I would have to see how it goes first."
Staff writer Kelly Heyboer contributed to this report.