Oklahoma Lottery Commission rethinking strategy

By Tim Talley, Associated Press

Posted: September 23, 2009 at 11:12 a.m.

• Print item
• E-mail
• Share
• Tweet

OKLAHOMA CITY — Oklahoma Lottery sales are projected to decline due to the slumping economy and competition from the new Arkansas Lottery, reducing revenue for public education by up to $4 million by 2011, the state Lottery Commission was told Tuesday.

Oklahoma Lottery sales are expected to decline by between $10 million and $12 million, although the demand for education funding will grow, according to a strategic plan for maximizing lottery sales. However, Oklahoma lawmakers said they are opposed to recommendations from lottery managers to make the lottery more profitable.

"I think it's morally reprehensible that our state encourages our citizens to throw their money away," Rep. Ken Miller, R-Edmond, chairman of the House Appropriations and Budget Committee, said after the commission's meeting. "I'm not surprised that fewer people are choosing to flush their money."

Arkansas is scheduled to start selling lottery tickets Monday. Jim Scroggins, executive director of the Oklahoma Lottery, said that will affect sales in Oklahoma, where seven of the state's top 10 retailers are along the Arkansas border and are popular with that state's residents.

Lottery Commission Chairman William Paul said the new Arkansas Lottery "has significant impact on our projections."

"They're going down for reasons that we don't really have control over," Scroggins said. He said the Arkansas Lottery, which will raise money for college scholarships, is tentatively scheduled to start Powerball ticket sales by the end of October, further affecting Oklahoma lottery retailers.

"They're being very aggressive," he said. "We just do the best we can with what we've got."

Scroggins and other lottery officials have asked state lawmakers to end a requirement that 35 percent of lottery sales go to education to free up more money for prizes and increase sales in Oklahoma. But lawmakers have refused to consider the idea.

Other states have seen sales soar when similar mandates were lifted, including North Carolina, where a 35 percent education-funding mandate was dropped in January 2008. In the first year after the switch, sales of scratch-off tickets jumped 26 percent, the director of that state's lottery, Tom Shaheen, has said.

"Arkansas won't have the profit constraint that we have," Scroggins said. "It's tough to run a business with a mandated profit."

Republican House Speaker Chris Benge of Tulsa said he considers the idea of lifting the education mandate "a nonstarter."

"What the Lottery Commission is asking out there is they want to see people lose more money," Benge said. "To me that is absurd."

Through Aug. 31, the Oklahoma Lottery has turned over $288.1 million for public schools, colleges and universities since it began operating in October 2005, Paul said. But Republican legislative leaders have criticized lottery supporters for exaggerating how much it would raise for public education.

They accuse supporters of claiming the lottery would generate $300 million per year, then lowering that estimate to $150 million. Lottery officials estimate that it will generate $66.7 million in revenue for public education during the fiscal year that began July 1, a $2.5 million drop from the previous year's contribution of $69.2 million.

Comments

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Please read our comment policy.

Use the comment form below to begin a discussion about this content.