Budget committee halves proposed lottery marketing increase, citing addiction concerns for iGaming

The Joint Budget Committee approved line‑item detail for the State Lottery Division but reduced the Marketing Communications appropriation, part of a broader debate about advertising for new iGaming products.

Vice Chair Bridges and several members argued the Lottery’s change in product mix — a move toward iLottery/iGaming products — made the larger advertising budget inappropriate for state‑funded promotion. Bridges described the new product as more addictive than the products the Lottery advertised last year and proposed reducing the marketing and advertising line from $18.2 million to $9.1 million before settling on a smaller cut.

Committee staff (John Catlett) explained the Marketing and Advertising line was $13.175 million prior to last year’s increase and rose to $18.2 million after a $3 million marketing increase the prior cycle; many of last year's additions were ongoing and annualized into FY26‑27 appropriations. The committee debated whether to rescind last year’s increases, take a one‑time reduction, or leave the appropriation as set last year. Members also discussed the Lottery’s vendor fee changes and additional FTE that were annualized this year.

After discussion, the committee approved a motion to adopt the State Lottery Division’s base appropriation except to set the Lottery Division Marketing Communications number at $13.175237 million instead of $18.2 million. The motion passed 3–2 (Taggart excused); two members requested the item be revisited when the absent member is present.

Members asked staff to provide further details about how Lottery advertising dollars would be spent and the degree to which the marketing line would promote new iGaming products versus traditional ticket sales.