Oregon Lottery Proceeds Under Fire, Educators Want More

Gambling News - October 31st, 2009 - Written by Glen

The Oregon Lottery Commission has posted reduced revenue in the fiscal year that ended in June, showing revenue of $787 million, down from $895 million in the previous year. Lottery proceeds primarily fund education, and it is the educators that is demanding a larger cut of the revenue, at the expense of the retailers.

At the current rate, the lottery retailers receive roughly 24 cents for every dollar sold. This is down from the 35 cents on the dollar, as the lottery has already cut their rate. The education advocacy spearheading the initiative is suggesting a rate of 16 percent commission to the retailers.

Stand for Children, one of the main groups in the fight, is asking that the left over money from the reduced commission be diverted to the education system. Oregon, like many other states, funds their public education system heavily through lottery sales.

Retailers have already taken a blow to their sales, particularly amongst those with video lottery terminals. January 1st saw a public smoking ban, which added to the economic hardships of the bars and taverns with video lottery terminals. With voluntary spending down due to recession, these venues had taken a harsh blow to their revenue. The average income from video lottery terminals dropped over $10,000 dollars from the year previous, going from $82,676 to $71,220.

"The lottery was created to maximize benefits for schools and other public purposes, not to subsidize bars and taverns," said Holly Pruett, executive director of Stand for Children Oregon Chapter.

The push for reduced commission began a day after Lottery Director Dale Penn recommended that no change in compensatory rates be made in the upcoming renewal of a six year contract.

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