Benge Questions Lottery Commission Request

State Rep. Chris Benge, chairman of the House Appropriations & Budget Committee, today questioned whether the Lottery Commission's request to cut education's guaranteed share of lottery profits would actually boost total profit.

"I question the premise that cutting education's percentage of lottery funds will ultimately boost sales," said Benge, R-Tulsa. "I think it is difficult to compare the Oklahoma lottery to other state lotteries. Oklahoma is very unique in that we have such a large presence of casino gaming and those facilities compete with the lottery for gambling dollars. The casino option has become more attractive to those seeking to gamble. It seems unlikely that a slight increase in lottery prize money would change that dynamic."

Lottery officials voted this week to ask the Legislature to repeal a voter-approved law giving education a guaranteed share of lottery profits. The program approved by Oklahoma voters requires that education programs receive 30 percent of lottery proceeds during the first two years of operation and 35 percent in all subsequent years.

However, lottery officials want lawmakers to repeal the 35-percent mandate so they can increase payout on some games, saying the larger prizes will boost overall sales. Oklahoma law already requires that at least 45 percent of lottery revenue be used for prizes with another 20 percent designated for administrative costs.

Since its inception, the lottery has consistently underperformed official projections - often by a significant margin - creating budget difficulties for Oklahoma schools.

According to news reports published this week, lottery officials claim they will break that pattern this year, but Benge warned that view may be overly optimistic.

"Although lottery officials have indicated they are on track to meet their sales goal for this year, the numbers I've seen show that collections are lagging," Benge said. "As of early December, the lottery's gross sales were averaging slightly more than $4 million per week. This year's state budget was written based on projections of about $5.2 million in gross sales each week. Things could improve, but the current average weekly sales will not support this year's lottery appropriation for education."

Share |