The MegaMillions Lottery drawing tonight is up to $370M so I got to their website to see where I can buy a ticket, and it strikes me that I can do everything there except buy a ticket. Why can't I buy a lottery ticket online? There are issues to be addressed but, for lotteries who have already done most of the logistical and regulatory legwork just to get started, they should be minimal. Here is a process that I think would work:

• Let me pick my numbers, or quickpick them for me.
• After I enter my credit card information, check that the billing address is valid, that I am of legal age to play, and the address resides in a permitted area for the lottery.
• Display a ticket that I can print, with a copy emailed to me.
• Allow, but don't require, that I create an account which will both speed this process in the future and allow extra benefits, like you calling me if I've won something but haven't cashed in yet.

To address fraud, every ticket would have both a barcode and a serial number. The serial number would match the credit card transaction number. In order to claim the prize, I would have to produce the credit card along with the ticket. I believe this would provide a sufficient paper trail to curtail, or at least expose, any fraud. There are several advantages for a lottery that implements this system:

• Increased accessibility for ticket buying.
• Reliable age verification available during the credit card authorization process.
• Potential for "convenience fees."
• Better demographic data on lottery participants.
• Capability for lottery "subscriptions," alerts, and deals for select users.
• Decrease in bonus pay-outs to retailers that sell the winning tickets.
• More marketing opportunities than you can shake a stick at.

So, who will be the ones who really push for this? Visa, Mastercard, and American Express...if they're smart. All those credit card transactions have to come from somewhere. Add in the age verification markup and the size of the lottery market, and the 2-5% they'd get off each transaction looks pretty attractive.

Technorati Tags: lottery, opportunity