News writer
As many states move toward iLottery, some of them are selling lottery tickets directly to consumers through state-run applications. In New Jersey, however, the Senate is moving to roll back these technological advancements and forbid online, direct-to-consumer state-run ticket sales.
What is Bill S2159?
In New Jersey, S2159 is a Senate bill that prohibits lottery ticket sales online from a state source. It goes in opposition to a rule that passed in 2022, which allowed the Division of State Lottery to directly sell tickets to consumers in New Jersey through its website and mobile apps. These sales were proposed to begin in the fall of 2024.
However, S2159 effectively stops the lottery commission from becoming a direct lottery sales agent.
The bill was advanced today in the committee session of the Senate State Government, Wagering, Tourism & Historic Preservation Hearing.
At the time the rule passed, the New Jersey Lottery Commission argued that the online option would lead to new customer reach, according to Convenience Store News & Petroleum Daily News.
The New Jersey Gasoline, Convenience Store, Automotive Association stated in response:
Ultimately, the state selling lottery tickets directly to the consumer through the Internet puts physical retail stores in competition with the very government entity that is their supplier, distributor, and chief advertiser.
Why stop sales?
Small businesses have denounced the new rule. For small businesses that run lottery terminals, the state's app is effectively taking money out of their pocket.
Senator Joe Cryan, the bill's sponsor, said in a statement that S2159 is saving these businesses from major revenue hits.
Senator Cryan said:
This bill would protect the thousands of small businesses in communities across the state that have served as the foundation of our lottery system for decades. These business owners have made it clear that the rule is fundamentally unfair and will drive down the daily foot traffic they rely on for additional sales, whether it be a tank of gas or a cup of coffee.
In other words, state ticket sales have been competing with brick-and-mortar retailers, and the New Jersey Senate is hoping to put a stop to it.
The bill was formally introduced in January 2024 and is under consideration.
What about courier services?
Courier services are third-party, independent businesses that purchase tickets from retailers on behalf of consumers. They are legal and regulated in New Jersey, making it one of the very few states that allow this service.
Courier services won't be affected by S2159 and will be able to continue operating in New Jersey as usual.
States that sell direct to consumers
There's no doubt about it. iLottery is sweeping the nation like a tidal wave.
Other states that feature official online ticket sales are:
- Connecticut
- The District of Columbia
- Georgia
- Illinois
- Kansas
- Kentucky
- Michigan
- New Hampshire
- New York
- North Carolina
- North Dakota
- Pennsylvania
- Rhode Island
- Tennessee
- Virginia
- West Virginia
Other states, like Colorado, are in talks regarding new digital platforms.
Lottery Commissions have long argued that online state sales directly relate to in-store sales - meaning, if online reach goes up, so do brick-and-mortar ticket purchases. But New Jersey senators are clearly not on board with this logic. Instead, Peter is robbing Paul.
The Virginia example
In Virginia, lottery sales reached a historic sales high in 2025, hitting $5.771 billion. For the second year in a row, online sales outdid in-store sales.
What might concern small business advocates is Virginia's retailer compensation over the years. Despite hitting epic sales numbers that year, retailers were compensated $127.9 million. This is far below retailers' $139.3 million compensation in 2021, when overall sales were far lower at $3.259 billion total.
While just one example, it's an interesting glimpse at a state where sales are ballooning, and retailers might be getting left behind.
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