ST. PAUL, Minn. -- The Minnesota Lottery is once again on the defensive at the State Capitol, as lawmakers take aim at online ticket sales and electronic instant scratch-off games.
A bill that would ban those online transactions as well as Play-at-the-Pump games and A-T-M games made it through the Senate Government Operations Committee Monday and is headed to the Senate Finance committee.
"It's the tail wagging the dog. And if there's ever been an example where the legislature ought to insert itself and engage in legislative oversight, this is it!" Sen. Dave Thompson, a Lakeville Republican, told his colleagues during a hearing where Lottery Director Ed Van Petten appeared.
E-scratch games allow people who create accounts tied to debit cards or checking accounts to play an online version of traditional scratch-off games, with a maximum of $50 per week.
"But you could change that to 100 or 1,000 dollars a week, couldn't you?" Sen. Thompson asked Van Petten.
"We have the authority, yes. But I wouldn't do it because it would be unwise."
Van Petten further explained that less than one half of one percent of current e-Scratch players hit that weekly $50 limit. He noted it's the only form of legalized gambling in the state that actually sets a limi.
The lottery began selling tickets online in 2010, during the Tim Pawlenty administration. But the move last year to instant games proved controversial. Gambling opponents argued it went beyond the scope of what voters approved of in 1988.
Last year the Lottery generated $127 million dollars for the state's general fund and for dedicated environmental uses. Of that $8.5 million came from the online sales.
But Van Petten says the move to instant games is more about keeping the Lottery vital for a new generation of players who are seeking the convenience of playing via the Internet. He asserts the Minnesota Lottery's sales are sure to suffer if there's no online option available.
"It is not 'Lottery gone wild,' in that we have not just gone off on a tangent. We have kept legislators informed every step of the way of what we have done here," Van Petten told KARE.
Lawmakers said they'd feel better if the Lottery sought explicit permission from the Legislature, because online lottery ticket sales and instant e-Scratch games were on anyone's radar when citizens passed a constitutional amendment allowing the state to operate a lottery.
A wide range of statewide organizations sent lobbyists to the hearing Wednesday to testify in favor of the bill, and reinforce their belief that the convenience of online gaming will make it easier for people to become addicted to gambling.
"Expansion on the Internet increases the rapidity of play, and I have concerns about that in terms of contributing to its addictive nature," Brian Rusche of the Joint Religious Legislative Coalition told senators.
"We have enough gambling; we don't need more,"
Van Petten said only 11 percent of the calls to Minnesota's gambling addiction assistance hotline are related to the lottery, and he knows of no cases in which e-Scratch players have sought help from that resource.
Governor Dayton vetoed a bill in 2014 that wouldn't barred the Minnesota Lottery from offering the online games, and Monday told the Associated Press that he continues to believe the legislature is trying to micromanage the Lottery.
