State-Run Internet Gambling

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State-Run Internet Gambling

According to Capitol reporter Tim Skubick writing for Mlive, last November the Michigan lottery quietly began letting individuals buy lottery tickets online. The number of online users has grown 300 percent, from 86,000 the first month to 322,000 now, with sales of $147 million.

 

Elsewhere in the Capitol, a Senate committee has advanced Senate Bills 889 and 890 to the full body for consideration. The bills would allow casinos in the state to enter the internet gambling market, subject to a 10 percent tax. A fiscal analysis suggests the move may or may not increase state revenues, because it could divert sales from the lottery.

 

None of the above addresses the ethical concerns surrounding state governments not just being in the gambling business but advertising heavily to entice individuals to gamble.

 

Research suggests that low-income and minority individuals disproportionately spend money on lottery gambling, where even more than casinos “the house” is the only real winner. In other words, government lotteries prey upon those least able to afford them.

 

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