Lottery lobbying

This state’s lottery enthusiasts have long insisted that adding their favored game to the state’s many gambling options would have little to no impact on the casino industry – if only those greedy gamers would drop their opposition to lottery ticket sales.

That’s worth remembering as Congress considers legislation to ban Internet gambling while carving out an exemption for online interstate poker – a bill that would position Nevada, with its established regulatory structure, to become the hub of the industry. This week, amid the urgent work by several sides to pass or kill the bill, another group stepped forward to declare its interest in online gaming legislation: state lotteries.

The chiefs of seven state lotteries have targeted the bill being prepared by Senate Majority Leader Harry Reid, D-Nev., and Sen. Jon Kyl, R-Ariz., because it would block the online expansion of their own games.

“The purpose of the trip is to just get our message out that gaming is a right that belongs to each individual state and it’s up to each state to determine not just the games they offer but the manner in which they are offered to their players,” David Gale, executive director of the North American Association of State and Provincial Lotteries, said last week.

In other words, lotteries and casinos are in direct competition for the same, limited dollars Americans are willing to gamble, whether it’s a few bucks on scratch tickets or $100 at the tables.

Kristen Orthman, a spokeswoman for Sen. Reid, said the bill “is just a draft. We continue to work with all stakeholders, including states, to address concerns.”

As longtime advocates of state rights and limited federal powers, Mr. Gale’s argument is easy to support. Of course states should have the ability to regulate gaming, including their own lotteries. And if the various state and multi-state lotteries want to make it easier for players to purchase tickets online, Congress should listen.

But if those same lotteries want to introduce new games and effectively create their own, state-run online casinos, well, that’s a different story.

Regardless of how this policy dispute plays out, it should leave no doubt that lotteries and casinos are direct competitors – and any pitch to the 2013 Legislature to create a Nevada lottery should acknowledge as much.