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MA Lottery App Rakes In M — Retailers Sound Alarm

MA Lottery App Rakes In $29M — Retailers Sound Alarm

Massachusetts Launches Online Lottery App: What It Means for Players, Stores, and Communities

The Big Picture: A New Way to Play

Massachusetts has launched a new iLottery app that lets people buy lottery tickets on their phones. The state spent $2.5 million to build it, and more than 24,000 players have already placed bets through the app.

Important Point: The app doesn’t replace in-store lottery. It’s an extra option. All lottery games are still available at the 7,200+ retail locations across Massachusetts.


What Games Are Available Online?

Right now, the app offers just over 7% of all Mass Lottery games, including:

  • Draw games like Mass Cash and Powerball
  • Instant win games (slot machine-style games)
  • The popular Numbers Game

Key fact: Massachusetts residents spend more on lottery per person than any other state — about $839 per year on average.


Why Store Owners Are Worried

It’s Not About the Ticket Commission

Stores that sell lottery tickets earn:

  • 5% commission on every ticket sold
  • 1% commission on winning tickets

Important Point: The commission is small. Store owners aren’t primarily worried about losing those few cents per ticket.

The Real Concern: Foot Traffic

When people come in for lottery tickets, they often buy other things:

  • A bag of chips
  • A drink
  • A bottle of wine or beer

Joe Dion, owner of Dion’s Fine Wine, explains: "We’ve been there for them since the beginning, and now they can simply just bypass us and sell direct to consumers. It’s just not right."

Ryan Kearney of the Retailers Association of Massachusetts warns: "Those loss of sales are going to have negative impacts on our members, not only lottery sales but on their ancillary sales."

Stores Are Already Struggling

According to Robert Mellion (Massachusetts Package Stores Association), retailers face multiple challenges:

  • Consumers spending less due to tariffs on goods
  • Less alcohol consumption nationwide
  • General affordability crisis

Ryan Maloney (Julio’s Liquors): "The state just decided that they’re gonna give [shoppers] one more reason not to step into a brick and mortar store."


What Experts Say: The "Omnichannel" Solution

Ying Huang, marketing professor at UMass Lowell, says this is a classic retail challenge — like when Walmart started selling online.

Her Recommendation: Omnichannel Marketing

This means promoting products both online AND in stores at the same time.

For the lottery, this could look like:

  1. Exclusive in-store events promoted on the app
  2. Special bonuses for visiting a physical retailer
  3. App features that drive people to stores (not just keep them home)

Mark Bracken (Mass Lottery Director) says his team is considering this model along with exclusive in-person games.

Important Point: Robert Mellion agrees with the solution but says it should have launched alongside the app to prevent retailer losses from day one.


The Other Big Concern: Gambling Addiction

Easy Access = Higher Risk?

Moses Shin, 39, spends $10/week on lottery but refuses to download the app:

"[I would] not be able to control myself."

Janelle Patrick, 48, has played since 2016 and calls it "one of the worst addictions… worse than drugs." She’s studying psychology to help others with gambling addiction and warns online access will hurt lower-income communities most.

What the Data Says

Marlene Warner (CEO, Massachusetts Council on Gaming and Health): "There’s no definitive data on whether online lottery will increase addiction… but they go online and now they have more access, and you can gamble faster."

Dr. Timothy Fong (UCLA Gambling Studies Program): Online safeguards "could help people become aware of how much they’re spending. That’s a very different experience than going to the gas station five times a day."


Safeguards Built Into the App

The Mass Lottery has added several protections:

Safeguard How It Works
Play Timer On-screen counter showing how long you’ve been playing
30-Minute Pop-Up Alert after 30 minutes of continuous play
Mandatory Cool-Down Forced break period after extended play
Voluntary Self-Exclusion Block yourself from the app entirely

Result so far: 20+ people have already used self-exclusion.


By the Numbers: Access Has Never Been Greater

  • 7,200+ retail locations selling lottery tickets
  • Most ticket sellers per capita, per square mile in the entire country
  • 24,000+ players already using the app

Mark Bracken: "Access to the lottery has never been greater as it is in the commonwealth."


Summary

Perspective Key Takeaway
Players New convenience, but some fear addiction risk
Retailers Losing foot traffic → losing snack/drink/alcohol sales
Lottery Officials Expanding access, adding safeguards, exploring omnichannel
Experts Omnichannel needed now; addiction risk real but unproven
Public Health Safeguards help, but 24/7 phone access changes behavior

The bottom line: Massachusetts is testing a balancing act — modernizing the lottery while trying to protect small businesses and vulnerable players. The next year will show whether the "omnichannel" approach works or if stores (and players) pay the price.


FAQ: Your Questions Answered

1. Does the app replace buying tickets in stores?

No. All lottery games are still available at 7,200+ retail locations. The app is an additional option.

2. How much of the lottery is actually online right now?

Only about 7% of games. Most games (including many scratch tickets) are still in-store only.

3. What cut do stores get from lottery sales?

Stores earn 5% commission on ticket sales and 1% on winning tickets. But the real money comes from customers buying other items while in the store.

4. Can I block myself from the app if I’m worried about addiction?

Yes. The app has voluntary self-exclusion — you can block your own access. Over 20 people have already done this.

5. Will online lottery hurt low-income communities more?

Advocates like Janelle Patrick and Marlene Warner warn that easy phone access could worsen addiction in lower-income areas, though definitive data doesn’t exist yet. The Lottery says safeguards are designed to help.

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