Who are the winners, losers when lottery goes online?

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Elismar “Ellie” Espada, of No. 1 Tobacco in Tinley Park, thinks allowing online sales of Illinois Lottery tickets might hurt small businesses. | Steve Metsch~Sun-Times Media

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Updated: February 24, 2012 8:08AM

When people come in to buy lottery tickets at Danny’s Market Place in Blue Island, they often spend money picking up additional staples — milk, lunch meat or bread.

But store manager Bobby Patel worries that a shift to allow online lottery ticket sales in Illinois may wipe out some of that extra business.

“Something like this hurts business owners,” Patel said.

Time will tell.

Illinois will begin offering online lottery ticket sales starting this spring. While some say the move is good because it will add cash to state coffers, others think it’s a terrible idea that could hurt business or lead to additional problem gambling.

“We’re very troubled by it,” said Jerry Prosapio, of Crestwood, who is co-founder of Gambling Exposed. “Any new form of legalized gambling has brought more addiction, and with the addiction it brings additional bankruptcies and crime.”

Illinois Lottery Supt. Michael Jones said online lottery sales could bring a significant revenue boon to the cash-strapped state. Illinois gets 25 cents for every instant ticket sold and 41 to 42 cents for every Mega Millions ticket sold.

Research has shown online sales could draw 300,000 to 500,000 more players to the Mega Millions game, for instance, when the pot is $100 million or more, which happens 30 to 40 times a year, he said. The average player spends about $5 per game.

Jones said the online ticket sales system will have controls to limit play to people 18 and older and to restrict sales to within Illinois’ borders.

The Legislature approved a test program for online ticket sales back in 2009, but Illinois and other states had to wait for the OK from the U.S. Justice Department. The federal stamp of approval came last month.

Illinois’ online sales should start in March or April, Jones said. The pilot program, which will last three or four years, includes Mega Millions and Lotto. The Illinois Lottery Commission plans to ask the Legislature for permission to add online Powerball ticket sales, too. Powerball, which is pushing ticket prices to $2 starting Jan. 15, wasn’t offered in Illinois when the legislation was adopted, Jones explained.

Customers will buy online lottery tickets with credit cards. But a cash-only policy will remain in effect for ticket purchases at stores and gas stations around the state.

Jones said there will be a limit adopted that will put a cap on how much an individual can spend on one game’s draw. The cap hasn’t been determined.

“That’s why it’s a test,” Jones said of the pilot program.

He said the mandate from the state is to sell the tickets in an “ethical and socially responsible manner.”

While some players welcome the option of buying tickets online, others prefer the tried-and-true method.

At No. 1 Tobacco in Tinley Park, lottery players “buy soda, candy, cigarettes, and other things,” clerk Elismar “Ellie” Espada said.

“It adds up,” she said.

The Illinois Retail Merchants Association has not taken a stance on the online sales.

“Our preference, obviously, is we hope people patronize their Main Street stores, but the Internet is a reality and we have to adjust. We have not heard from a lot of (the merchants) directly,” senior vice president Rob Carr said.

On a recent snowy morning, there was a steady stream of customers in the tobacco store, including Jeff Kennedy, who stopped in to buy a few cigars. He’s not worried about people spending more than they should on the lottery if online sales are available.

“I don’t think it’s going to make people gamble more than they already do,” Kennedy said. “They’ll gamble whether they buy it online or come into the store.”

Overall, he likes the online idea, saying, “it makes it easier to play.” But he is concerned for the merchants.

Merchants receive from the lottery 1 percent of the total take for winning tickets they sell. And that won’t happen if someone buys a winning ticket online.

“It’s going to hurt these guys, I think they’re being hurt enough. That’s the negative part,” Kennedy said. “But it’s a great thing for the state. They don’t have to pay out that 1 percent when people win.”

Espada, of Oak Lawn, said she thinks some people who are “addicted to the lottery” may spend more than before. But she said it is a nice option for seniors who may not want to challenge wintry weather just to buy a few tickets.

Sharon Quinn, of Tinley Park, thinks online sales “are more convenient, definitely.”

“The old people will do it at home more often than anybody,” said Quinn, who works as a waitress.

One concern is it may be too convenient for those who should not be playing the lottery.

Prosapio fears that kids under the legal age of 18 will be able to subvert the online ticket sales system to buy lottery tickets.

“They’re computer savvy,” Prosapio said.

Jones said technology exists to guard against under-age players and out-of-state sales.

Jones said the real mission of the lottery is to help the state generate revenues and to “get a lot of people to play a little.”

Back at the tobacco store on 183rd Street, where nearly each visitor bought a ticket or two, FedEx driver Laura Grossman, of Oak Forest, made her delivery and then decided to buy a $3 scratch-off ticket.

“I like to go to the store to buy them. I don’t think I’ll be buying them online,” said Grossman, of Oak Forest, as she walked out the door.

Moments later, she stepped back inside.

“I’ve got a winner,” Grossman said, and Espada handed Grossman a crisp $20 bill.