NASHVILLE, Tenn. (WTVF) — The Tennessee lottery is one of a handful of topics that could really heat up in the final days of this year's legislative session.
There's an app for that
The state lottery system decided to develop an app, that exclusively plays online Powerball lottery games, to help counter sluggish scratch off ticket sales.
"Across the country, instant tickets sales have started dropping as sports betting has happened in every jurisdiction," said Rebecca Paul, the President and CEO of the Tennessee Lottery during budget hearings back in 2024. "Which is why, we’re looking at some things to try to do with the instant ticket product to try to recapture the player that has maybe gone to sports betting."
That decision upset several key lawmakers in the Tennessee House. "We have not allowed that in the legislature at least, there’s been no bill that’s gone through here to allow for online lottery sales," said State Rep. William Lamberth, (R-Portland) who also serves as House Majority Leader.
Who's call is it?
Lamberth has been an outspoken critic of all forms of gambling. However, he specifically takes issue with how the online platform is connected to someone's bank account when traditional lottery tickets are cash only.
"It creates some restraint there on someone just cleaning out their entire bank account because the lottery happens to be at a large number right at that time," said Lamberth.
A spokesperson for the Tennessee Lottery contends, they're allowed to test out this app without the legislature's approval.
"The Lottery implementation law has always allowed for the Lottery itself to sell tickets and accept any form of payment, but legislative action remains necessary to permit retailers to accept debit card transactions," wrote Rachel Petrie, a spokesperson for the Tennessee Lottery. "The Lottery has consistently communicated with the Legislature about its evolving operations and noted in a recent budget hearing that it is pursuing new sales distribution channels as a way to increase revenues."
Leaders in the Tennessee Senate agree with lottery officials.
"They believe they have the statutory authority to implement an app and basically online availability of lottery tickets," said State Sen. Jack Johnson (R-Franklin) who also serves as Senate Majority Leader. "My position is, we have to make sure the lottery is competitive."
Why this matters
Success of the Tennessee Lottery is crucial for various education programs statewide. Revenue from the lottery directly benefits recipients of the Tennessee Hope Lottery Scholarship, which provides money for Tennessee residents attending in-state universities. It also funds the General Assembly Merit Scholarship, the Aspire Need-Based Supplemental Scholarship, the Dual Enrollment Grant and the Tennessee Reconnect Grant.
"We have tremendous obligations from the revenue we generate from that," said State Sen. Johnson.
Legislative maneuvering
State Rep. Lamberth took the unusual step last week, to amend a different bill dealing with state boards and commissions, and add on a provision that bans the state from implementing a lottery app. By passing this amendment, Lamberth hopes the lottery will try next year to get legislative approval for an online lottery program. "What our version would do, is it would put them back at base zero where they would need to bring a bill in order to bring a lottery game," he said.
The Senate does not plan to adopt that amendment. If both versions of the bill pass their respective chambers, the two chambers will have to go to a Conference Committee to hash out their differences.
NewsChannel 5 asked Tennessee Governor Bill Lee about the issue Thursday. He told us he's comfortable with whatever the legislature decides on this.
That means, it's anyone's bet on whether this app gets to continue or it's scratched.
Do you have more information about this story? You can email me at chris.davis@newschannel5.com.
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