Vending machine lottery ticket sales advance

Nebraskans could purchase lottery tickets through vending machines under a bill given first-round approval Jan. 14.

LB60, introduced last session by Grand Island Sen. Dan Quick, would remove a current prohibition in state law on the sale of lottery tickets through vending or dispensing devices. Calling the measure a “very modest and logical update,” Quick said that of the 45 states that conduct lotteries, only Nebraska and South Carolina currently do not allow vending machine sales.

Such machines have barcode readers that prohibit sales to minors by requiring a valid Nebraska drivers’ license, Quick said. In addition, he said, the bill would speed up service at gas stations and convenience stores by freeing up cashiers from the time-consuming process of lottery ticket sales.

Bellevue Sen. Rick Holdcroft, chairperson of the General Affairs Committee, supported the measure, which he said the committee voted 8-0 to advance to the full Legislature mostly because it would promote customer convenience.

The bill also would raise approximately $500,000 in additional revenue for organizations that receive a portion of lottery proceeds, he said, such as the Nebraska State Fair Support and Improvement Fund and the Nebraska Environmental Trust Fund.

Sen. Jane Raybould of Lincoln also spoke in support of LB60. She said the nearly $1.7 million in additional revenue that the proposal would generate over the next three fiscal years could help address the state’s financial outlook.

“This [amount] is substantial and it will help with our revenue shortfalls,” Raybould said.

Opposing the bill was Appropriations Committee chairperson Sen. Robert Clements of Elmwood. He said any funds for property tax relief generated by LB60 would not offset the “social costs” associated with increased gaming.

For example, he said, casino proceeds are estimated to generate only about $34 million of the nearly $1.3 billion in property tax relief that the state is expected to provide this year — or 2.8%. Not enough, he said, to counterbalance increases in crime and other negative societal impacts caused by making gaming more accessible.

Lawmakers voted 32-10 to advance LB60 to select file.