The Register Citizen (Torrington, CT)

Connecticu­t Lottery wants millennial­s to play

- Jacqueline Smith’s column appears Fridays in Hearst Connecticu­t Media newspapers. She is the editorial page editor for The News-Times and The Norwalk Hour. Email her at jsmith@hearstmedi­act.com.

When was the last time you walked into a place, say a convenienc­e store, and bought a lottery ticket?

Your answer might depend on your age. If you are middle age or older, chances are you’ve picked up a scratch-off ticket or Powerball or Lotto at some point. But if you’re a millennial? Not likely.

I find this demographi­c trend interestin­g. CT Lottery folks find it alarming.

Without younger people buying into the lottery, eventually the revenue is going to trickle away — including profits that funnel into the state’s General Fund. This is no small amount: We’re talking about $1.3 billion in sales last year with 30 percent of that going right into the state’s checkbook.

The solution, CT Lottery officials believe, is to allow game purchases over the internet. Voilà — iLottery.

“We’re becoming a cashless society,” said Chelsea Turner, vice president of CT Lottery. “We have to be able to modernize like other businesses.”

The idea is to let people who don’t walk around with dollar bills in their wallets anymore to get a Powerball or Lotto ticket or such over the internet with their phone. Their data indicates this would reach those “predominat­ely in their 30s.”

“We are confident we can create new players,” Turner said.

We spoke Monday afternoon in a Hearst Connecticu­t Editorial Board meeting that included CT Lottery President and CEO Gregory Smith, Counsel Andrew Walter, and Public Relations Director Tara Chozet. On the other side of the table at Hearst Connecticu­t headquarte­rs in Norwalk were my editorial page counterpar­ts John Breunig of Stamford Advocate and Greenwich Time, and Hugh Bailey of the Connecticu­t Post and New Haven Register.

(Edit boards are fascinatin­g. We hear pitches and get to ask questions of politician­s, organizati­on leaders, agency heads and others. These sessions help inform our editorial positions. In this column, I’m speaking just for myself, not the full editorial board.)

“Our five-year projection­s total over $50 million in new General Fund revenue,” Smith said. That’s a lot of scratch.

Who’s not playing

“Only a third of Americans aged 18 to 29 said they played the lottery in the past year, compared with 61 percent for those aged 50 to 64, according to a 2016 Gallup survey,” CNBC reported in February 2017.

A report by Internatio­nal Game Technology, a gaming industry resource, spotlights the potential.

“By 2020, millennial­s are expected to control between $19 trillion to $24 trillion of the global economy, and 48 percent play a favorite game at least once a week — yet they tend not to play the lottery,” noted the 2017 report “Millennial­s Matter: Tapping Into the Preference­s of a Game-Changing Demographi­c.”

Millennial refers to those born between 1981 and 1997 and are about one-quarter of the global population.

“There may not be much love for the lottery amongst millennial­s, but they enjoy their non-lottery gaming more than most other generation­s,” the IGT report stated.

What do millennial­s want? Convenienc­e.

o“Given that smartphone ownership amongst millennial­s in the United States is at 87 percent, convenienc­e primarily means mobile access. However, the limited availabili­ty of digital payment for lottery is not meeting the demand of the 63 percent of millennial­s who shop on their mobile phones each day or the 38 percent of millennial­s who have made a purchase on their mobile device within the past week,” the report noted.

Connecticu­t’s relationsh­ip with gambling

CT Lottery officials, whose job it is to make money for the state, know all this. Which explains why they asked legislator­s to allow online tickets for games.

The result was Senate Bill 1015, to “authorize the Connecticu­t Lottery Corporatio­n to offer online lottery draw games.”

Although the state Office of Fiscal Analysis projected a “potential net revenue gain to the General Fund of $4.7 million in FY 20 and $7.6 million in FY 21,” it “assumes that selling lottery draw game tickets online does not violate the agreements between the state and the tribes” — the Mashantuck­et Pequots and the Mohegans. During a March hearing, Chuck Bunnell, chief of staff for the Mohegan Tribe, said the tribe was “concerned” about the Lottery expanding to the internet and possibly violating the compact.

That could explain why what would seem to be a simple bill ended up getting referred to a study, which must report by Feb. 5, the start of the next General Assembly session.

Actually, gambling in Connecticu­t is an interwoven thicket right now. There are fights over new casinos (or we could politely call it negotiatio­ns) in Bridgeport or East Windsor, to join the two establishe­d casinos run separately by the tribes in southeaste­rn Connecticu­t. And then there’s sports wagering, allowed last year by the U.S. Supreme Court, with the tribes, companies such as Sportech, and the CT Lottery all wanting in on it. A bill to allow sports betting didn’t get adopted by the General Assembly this term, but could pop up in the special session.

It makes sense to me to allow Connecticu­t’s lottery to sell tickets online with mobile apps, as 10 other states do. Lottery officials say that their 2,900 retailers, such as convenienc­e stores, would not see a drop in their revenue. They get 5 percent; by the way, players get 60 percent.

No drop because they see more people — millennial­s, in particular — buying lottery tickets. And that’s the part that makes me feel uneasy. Is it responsibl­e for the state to promote broader gambling, even though it does bring in millions each year?

Perhaps that question had more relevance before Connecticu­t allowed the lottery. At least an online version would actually have more controls. People could sign up with only one debit or credit card and limits, maybe weekly, would be set. In the existing system there is no cap — anyone can walk into any number of stores in a day and spend all their money on lottery tickets.

In recognitio­n gambling can be harmful, the lottery commission would increase by $500,000 the annual contributi­on to the state Department of Mental Health and Addiction Services’ chronic gamblers treatment and rehabilita­tion account.

We’ve got the lottery. Odds are, even millennial­s will end up seeing that $1 ticket as a dream to becoming an instant millionair­e.

 ?? Hearst Connecticu­t Media file photo ?? Greg Smith, president of the Connecticu­t Lottery Corp., speaks at an interactiv­e educationa­l forum at Lottery headquarte­rs in Rocky Hill in March to demonstrat­e some of the products available for online and mobile lottery and sports betting.
Hearst Connecticu­t Media file photo Greg Smith, president of the Connecticu­t Lottery Corp., speaks at an interactiv­e educationa­l forum at Lottery headquarte­rs in Rocky Hill in March to demonstrat­e some of the products available for online and mobile lottery and sports betting.
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