Lottery bet coupons are dragged down the supply chain

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BOSTON (SHNS) – Facing the same kind of supply chain crisis that has impacted other businesses, the Massachusetts Lottery is examining its options for dealing with a possible shortage of bet coupons, including testing non-recycled paper to see if it could be used to fill the gap.

Lottery executive director Michael Sweeney told the Lottery Commission on Tuesday that a betting slip provider has warned the lottery of potential delays in its next and future shipments. Since being informed, he said, the Lottery has looked at its existing stock of betting coupons and has started to “manage very heavily” the distribution of that inventory.

“This is a direct quote from one of our betting slip providers: ‘I’ve never seen this before. The paper company cannot fulfill my order and will not accept new orders. ‘ And obviously, without them getting the raw supply of paper, they have a hard time meeting the needs of their customers like Mass. Lottery, ”Sweeney said. “It has the potential to impact the operations of Keno and other drawing games.”

The pandemic and the economic recovery have had significant impacts on production, shipping rates and consumer spending habits. The White House reported in June that ratios that measure the number of current selling days that businesses and retailers could sustain from existing inventory hit record highs in March, and that “36% of small businesses reported delays with suppliers national, with delays concentrated in manufacturing, construction, and trade sectors.

The Lottery is awaiting a delivery of non-recycled paper and has its quality assurance team “equipped” to immediately begin testing whether the non-recycled product could meet the Lottery ‘s game integrity needs, Sweeney said. If it can, the Lottery plans to start ordering non-recycled paper to use for its betting coupons instead of the recycled paper it typically uses.

“At least since Monday, our contract suppliers have told us that for now, being able to fill orders with non-recycled paper would be easier and faster than the potential delays we’re seeing for recycled paper,” he said. declared.

Treasurer Deborah Goldberg, who oversees the Lottery and chairs the Lottery Commission, pointed out that the headache of the supply chain problem and the possibility of a business model change at the main scratch ticket supplier of the Lottery could be mitigated if the Lottery were not so dependent on in-person sales.

“Both of these issues relate to the challenges of point-of-sale, physical-type operations,” said Goldberg, who for years has been pushing for the ability to sell lottery products online. “And we just have to be very aware of that. “

Sweeney also reported to the Lotteries Commission on Tuesday that August sales were up $ 40.4 million from August 2020, as sales of almost all products rose and the month saw an estimated increase in profits of $ 8.7 million.

Fiscal year 2021, which ended June 30, was a record for the Massachusetts Lottery with an estimated profit of $ 1.12 billion to be used for local aid from $ 5.827 billion in revenue while by paying out $ 4.283 billion in prizes and distributing $ 333.3 million in commissions and bonuses.

The previous year’s profit exceeded the previous record, in fiscal 2019, of just $ 8.4 million.

In the two months of fiscal 2022, the lottery is about $ 20.6 million behind last year’s profit pace as the average payout percentage is about three times higher. points compared to a year ago, Sweeney said.


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