All news

Hidden budget provision could transform Missouri Lottery sales

Senate slips digital lottery provision into budget as education funding from ticket sales declines 15%.

The Missouri State Capitol building in Jefferson City, Missouri.
Samantha Herscher

A quiet addition to Missouri's state budget could dramatically change how lottery tickets are sold across the state. The provision, inserted without public debate by the Senate Appropriations Committee, would establish a three-year pilot program allowing online lottery ticket purchases through courier services.

Controversy surrounds the lottery courier proposal

The proposal would permit companies like Jackpocket and Lotto.com to charge fees for buying lottery tickets on behalf of customers. These courier services typically add 15% to 25% surcharges, significantly higher than the 5% commission traditional lottery retailers receive.

The business model has generated controversy in other states. Texas recently banned courier services after investigations uncovered issues, including a London-based trader who bought all 25.8 million possible number combinations to win a $92 million prize.

Lobbyists representing casinos and video lottery companies - groups typically at odds - have united in opposition to the provision. Meanwhile, major lottery courier companies have hired veteran Jefferson City lobbyists to advocate for their interests.

State Rep. Betsy Fogle of Springfield noted significant concern about legislating this change through the budget process rather than through proper statutory channels.

Budget process transparency questioned

The lottery courier language highlights broader transparency concerns in Missouri's budget process. State Sen. Joe Nicola, a Republican from Independence, criticized the current system as problematic dealmaking that lacks proper transparency.

Hough defended the process as transparent because budget items receive public hearings, and changes are announced publicly. Senate leadership from both parties expressed support for Hough's approach, with Senate Minority Leader Doug Beck acknowledging that everyone has input in the process.

Nicola advocates for greater transparency, suggesting Missouri follow the U.S. Congress model, where lawmakers publish earmark requests on their websites. He believes the state legislature should identify which lawmaker or entity requested specific funding to increase accountability to constituents.

Key budget decisions pending as deadline approaches

All budget decisions must be finalized before this week's 6 p.m. CT Friday constitutional deadline. Conference committees must resolve differences on hundreds of items and decrease the $1.6 billion gap between House and Senate spending proposals.

Missouri currently has a historic general revenue surplus of $3.8 billion, with an additional $1.4 billion available for general spending. Both chambers propose reducing this surplus, but with current revenues down almost 2% from last year, the withdrawal could grow by up to $100 million.

Major issues to be resolved include:

  • $300 million added by the Senate for public schools.
  • $107 million for child care, which was not approved by the House.
  • Different proposals for state employee pay raises and higher education funding.
  • $50 million House-approved expansion of a private school tuition scholarship program that the Senate omitted.

Democrats, despite holding less than one-third of the seats in the General Assembly, generally favor the Senate version on several key items. However, House Democrats feel their negotiating position was undermined when Speaker Jon Patterson rejected some of their committee selections.

The surprise appointment of state Rep. Marlene Terry, who isn't on the Budget Committee but supports the scholarship funding, particularly frustrated House Democrats. House Minority Leader Ashley Aune expressed significant disappointment with the process.

Lottery faces declining sales

The proposed online lottery ticket sales come as the Missouri Lottery faces financial challenges. Sales fell by $50 million in the most recent fiscal year, and transfers to education programs are down 15% in the current year.

The lottery provides approximately 4% of Missouri's total education funding, making its financial performance significant for the state's educational system.

When asked about the online sales provision, Hough acknowledged he was unaware of the issues experienced in Texas and noted the lottery director seemed indifferent to the proposal. He suggested the provision might not survive the conference committee process.

As legislators work to finalize Missouri's $49.5 billion spending plan this week, the fate of this provision and hundreds of other budget items remains uncertain.

Comments

0
Loading comments

Related articles

QuikTrip, located at 12100 Lusher Road in St. Louis, Missouri.
Missouri man wins record Powerball jackpot, plans to 'just do me'

Relaxing at home is his dream day, but his wife has bigger plans after winning $893.5 million.

Todd Betzold profile pic

Todd Betzold

Big's 103, located at 11905 E. U.S. Highway 290 in Fredericksburg, Texas.
Who won Saturday's $1.79B Powerball jackpot?

The drawing created nearly 10 million winners and helped pump millions into schools.

Todd Betzold profile pic

Todd Betzold

U.S. Attorney's Office, Eastern District of Missouri.
Lottery scam suspect arrested 6 years after indictment

Authorities say he used multiple aliases before Postal Inspectors tracked him down.

Todd Betzold profile pic

Todd Betzold

The Massachusetts Lottery and Aristocrat Gaming logos over a white background.
Massachusetts Lottery makes long-awaited deal for online platform

Massachusetts-sponsored online lottery games could be available next summer.

Halley Bondy profile pic

Halley Bondy

Recent articles

View All
Mike Express, located at 2138 Stumpf Boulevard in Terrytown.
$150K Powerball winner in Louisiana has yet to step forward

A lucky ticket from Mike Express in Terrytown is still unclaimed, with the clock ticking toward January 19.

Todd Betzold profile pic

Todd Betzold

A screen capture from the Maryland Lottery and Gaming Commission Meeting for 9/25/2025.
Who will win the big lottery contract war in Maryland?

With both Intralot and Scientific Games interested in the contract, where does Maryland currently stand?

Halley Bondy profile pic

Halley Bondy

The California Lottery and Pollard Banknote logos over a white background.
California Lottery scratchers just got a boost with new games on the way

A longtime lottery partner is set to deliver new ticket options to boost fun and winning potential.

Todd Betzold profile pic

Todd Betzold

Muhly's Little Store in Clarksville, Pennsylvania.
Greene County jackpot: Small town store sells $1.05M winning ticket

Pennsylvania Lottery winner has 365 days to claim life-changing prize.

Samantha Herscher profile pic

Samantha Herscher