Too Easy Money

Allowing debit cards for lottery sales is bad for business, public

Once a state gets a taste of lottery revenue, they develop an appetite for that easy money. And sometimes that leads to unwise legislation.

Back in April, Arkansas Gov. Asa Hutchinson signed a bill that allows lottery players to use their debit cards to purchase tickets.

Previously the rule had been cash only. But now the state joins Texas and most other states in allowing easier access with debit. Both Arkansas and Texas still prohibited using credit cards for lottery tickets, though we have to wonder how long that will last.

The Arkansas law goes into effect the first of the month. But whether to accept debit cards is up to lottery retailers and some are balking. It seems the fees associated with accepting debit cards cut deeply into the commissions retailers get for selling the tickets.

In a story published Sunday, Texarkana-based E-Z Mart CEO Sonja Yates Hubbard told the Arkansas Democrat-Gazette that the chain will not be taking the cards.

E-Z Mart is the largest corporate seller of lottery tickets in the state. But Hubbard said because of debit card fees retailers would lose money on the tickets unless the customer makes a large purchase.

Other lottery merchants plan to accept debit cards since customers expect to pay with the cards, despite lost revenue.

Allowing debit cards is bad for retailers. It’s not good for players either. We can’t support anything that encourages gambling—especially on something where the odds are so stacked against winning.

We understand the state wants to make it easier for people to spend their money on the lottery. But unfortunately such schemes too often attract those whose resources could be better spent on life’s essentials rather than what amounts to little more than a dream. Folks can choose to spend their money any way they want. But there is no reason to make it any easier to fritter away.