LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 3759
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MAY 23, 2025
SUMMARY
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Synopsis: |
Prohibits internet sale of lottery tickets by State Lottery Commission.
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Type of Impact: |
Potential annual State revenue loss. |
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Agencies Affected: |
Department of the Treasury, Division of State Lottery. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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Potential State Revenue Decrease |
Indeterminate |
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· The Office of Legislative Services (OLS) finds that the bill would potentially result in an indeterminate reduction in annual State revenues. Nothing currently precludes the Division of State Lottery from directly selling lottery tickets to consumers in the State through its website or mobile application, so a prohibition on these sales would reduce future revenues the division could have realized had it initiated these sales at some point absent this bill.
· The division does not currently sell lottery tickets through its website or mobile application so at present there is no impact on State revenue collections.
BILL DESCRIPTION
This bill prohibits the State Lottery Commission, any entity of the State Lottery Commission, or any entity contracted by the State Lottery Commission from directly selling lottery tickets via the Internet. This bill does not affect the rights of registered courier services from selling lottery tickets via the Internet.
FISCAL ANALYSIS
EXECUTIVE BRANCH
The Executive Branch has not provided a fiscal note on this bill.
The State Lottery Commission published a rule proposal on September 19, 2022 that would allow the Division of State Lottery to directly sell lottery tickets to consumers in New Jersey through its website and mobile application. In the rule proposal, the commission includes the following economic impact statement: “The proposed new rule provides an additional authorized game purchasing option and adds a service that may benefit customers and provide additional incentives to attract players. This proposed new rule should increase Lottery ticket sales and maintain or increase the Division's revenue contribution to the State’s pension systems pursuant to the Lottery Enterprise Contribution Act, N.J.S.A. 5:9-21.”
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill would potentially result in an indeterminate reduction in annual State revenues. Nothing currently precludes the Division of State Lottery from directly selling lottery tickets to consumers in the State through its website or mobile application, so a prohibition on these sales would reduce future revenues the division could have realized had it initiated these sales at some point absent this bill.
The OLS notes that as of May 2025, the Division of State Lottery does not directly sell lottery tickets to consumers in New Jersey through its website or mobile application. Thus, the prohibition on Internet sales of lottery tickets by the State Lottery Commission as provided in the bill would not alter current practices or State revenues.
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Section: |
State Government |
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Analyst: |
Assistant Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).