Welcome Guest
Log In | Register )
You last visited December 8, 2016, 4:55 pm
All times shown are
Eastern Time (GMT-5:00)

Oklahoma lottery making strides to increase prizes

Oklahoma LotteryOklahoma Lottery: Oklahoma lottery making strides to increase prizes
52
Rating:

Oklahoma lottery officials voted Tuesday to reduce the amount of money paid to nearly 2,000 retailers that sell lottery tickets to increase prizes in "almost a last resort" to boost sales.

The Lottery Commission has reduced its operating costs to less than 2.5 percent of its $192 million in revenue by reducing office space and cutting the number of staff from 40 to 26, said Rollo Redburn, the agency's executive director.

Operating expenses were cut from $9.7 million in 2008 to $4.8 million this fiscal year, he said.

Money saved from the cuts went into prize money.

The proposed rule change to reduce the rate that retailers receive from 6 percent to 5.5 percent for each dollar of ticket sales now goes to Gov. Mary Fallin. The rule also eliminates paying a fee of 0.75 percent for each dollar of prizes $600 or less paid out by most retailers.

If the governor approves the rule change, the proposal then goes to the Legislature. The rule would go into effect if lawmakers don't disapprove it before they adjourn in late May.

Lottery Trustee William Paul, in making the motion to accept the proposed rule change, said it is "almost a last resort" for the lottery.

Trustees have said for years that the lottery is handicapped by a requirement that 35 percent of its profits go to education. That has resulted in lower prizes, which have hurt sales, they say.

Redburn said reducing the commission to retailers is necessary to make up for an anticipated increase in gaming vendor contracts. The contract has been in place since 2005 and expires in August.

It's expected the contract will increase by $2 million a year, Redburn said. The vendor currently receives 2.84 percent of sales for running the gaming system terminals, computers, hookups, as well as providing backup, repairs and sales staff, Redburn said.

Trustees met in closed, executive session to award a new vendor contract, but the winning bid won't be released until the contract is reviewed by the state's chief information officer, Redburn said. The contract is for one year, and can be renewed annually for the next nine years.

Lottery trustees have asked lawmakers for years to remove the 35 percent cap, saying it would allow the lottery to offer larger prizes on its various games. The larger prizes would increase ticket sales, which would result in more money going to education.

Republicans mostly opposed the lottery and were in the minority in both the House of Representatives and the Senate when voters approved a constitutional change in 2004 allowing the lottery in Oklahoma. Republicans now have a 2-1 advantage in both chambers. Legislative leaders have said they don't want to approve legislation that would increase gambling in the state.

Trustee James Orbison said he is aggravated that lawmakers are unwilling to improve lottery sales, which would mean more money for education. The lottery in the 2012 fiscal year earned $70 million for the state out of total sales of $200 million; that contrasts with the $123.9 million paid to the state that same year by the 33 tribes that have 116 gaming venues — 114 casinos and two racinos — out of gross gaming revenue of an estimated $3.2 billion.

"When the state's receiving less than 7 percent under the compacts ... from gaming and we're responsible for paying 35 percent by contract, which limits us from making more money for everybody, just doesn't seem fair," he said. "The two don't jive."

Orbison said he believes the 65 percent of Oklahomans who voted for the lottery in 2004 want the games to be successful.

"Why would anybody who voted yes for the lottery not want a law changed that increases the payouts on their lottery tickets and increases revenue to education when it's run by a lottery commission with an incredible low overhead?" he asked. "You know they would say yes. Why doesn't our Legislature reflect that?"

Oklahoman

We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

14 comments. Last comment 4 years ago by jamella724.
Page 1 of 1
Avatar
AL
United States
Member #137156
December 28, 2012
30 Posts
Offline
Posted: March 20, 2013, 9:36 am - IP Logged

Dallascowboyfan this is for you. You have spoken and they listened. Congratulations!!!!!!!!!!!!!!!Hyper

 

Hurray!Party

    JAP69's avatar - alas
    South Carolina
    United States
    Member #6
    November 4, 2001
    8790 Posts
    Offline
    Posted: March 20, 2013, 9:53 am - IP Logged

    A state lottery can cut expenses by that amount and still operate at the same level as before the cuts.

    The federal government has a management problem.

    MAGA

      sully16's avatar - sharan
      Ringleader
      Michigan
      United States
      Member #81740
      October 28, 2009
      40513 Posts
      Offline
      Posted: March 20, 2013, 9:55 am - IP Logged

      Dallascowboyfan this is for you. You have spoken and they listened. Congratulations!!!!!!!!!!!!!!!Hyper

       

      Hurray!Party

      I Agree! Yep, Hope your one of the first to enjoy bigger prize payouts Dallas !Party

      Did you exchange a walk on part in the war ?

      For a lead role in a cage?

       

                                                  From Pink Floyd's " Wish you were here"

        dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
        Oklahoma
        United States
        Member #82391
        November 12, 2009
        6290 Posts
        Offline
        Posted: March 20, 2013, 11:24 am - IP Logged

        I know have been complaining a lot about our lottery(and rightfully soMad), thanks for listening to me vent my fellow LP members Wink it's because I know it can be better.  If your reading this post OLC we need a state lotto game and better scratch-offs tickets this will help boost sales.

        How is it that Arkansa joined the lottery after us and yet they have better scratchers and they have a state lotto game? Now mind you it may not be a large jackpot game but it's something and people are playing & winning it. Also get rid of the computer generated drawings. Bang Head

        This is a step in the right direction by giving more money back to the players/winners.Thumbs Up

        I Love Pink & Green 1908

          dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
          Oklahoma
          United States
          Member #82391
          November 12, 2009
          6290 Posts
          Offline
          Posted: March 20, 2013, 11:26 am - IP Logged

          Dallascowboyfan this is for you. You have spoken and they listened. Congratulations!!!!!!!!!!!!!!!Hyper

           

          Hurray!Party

          Thanks tymack & thank you for letting me vent lol.

          I Love Pink & Green 1908

            dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
            Oklahoma
            United States
            Member #82391
            November 12, 2009
            6290 Posts
            Offline
            Posted: March 20, 2013, 11:27 am - IP Logged

            I Agree! Yep, Hope your one of the first to enjoy bigger prize payouts Dallas !Party

            Thanks sully, I know I have been a pain always posting about how bad our lottery is thanks for reading my post.

            I Love Pink & Green 1908

              Avatar
              AL
              United States
              Member #137156
              December 28, 2012
              30 Posts
              Offline
              Posted: March 20, 2013, 11:43 am - IP Logged

              Your welcome dallascowboyfan, vent anytime. I wonder if I vent enough about not having a lottery in the state of Alabama would they listen.

              Argue

                dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
                Oklahoma
                United States
                Member #82391
                November 12, 2009
                6290 Posts
                Offline
                Posted: March 20, 2013, 11:48 am - IP Logged

                Your welcome dallascowboyfan, vent anytime. I wonder if I vent enough about not having a lottery in the state of Alabama would they listen.

                Argue

                I'm hoping Alabama is next tymack, Wyoming just joined the lottery madness so anything is possible.Thumbs Up

                I Love Pink & Green 1908

                  sully16's avatar - sharan
                  Ringleader
                  Michigan
                  United States
                  Member #81740
                  October 28, 2009
                  40513 Posts
                  Offline
                  Posted: March 20, 2013, 11:50 am - IP Logged

                  Thanks sully, I know I have been a pain always posting about how bad our lottery is thanks for reading my post.

                  Your very welcome, and you are not a pain, your an honest player who wants a fair return.

                  Did you exchange a walk on part in the war ?

                  For a lead role in a cage?

                   

                                                              From Pink Floyd's " Wish you were here"

                    Jon D's avatar - calotterylogo
                    Los Angeles, California
                    United States
                    Member #103813
                    January 5, 2011
                    1530 Posts
                    Offline
                    Posted: March 20, 2013, 4:59 pm - IP Logged

                    I know have been complaining a lot about our lottery(and rightfully soMad), thanks for listening to me vent my fellow LP members Wink it's because I know it can be better.  If your reading this post OLC we need a state lotto game and better scratch-offs tickets this will help boost sales.

                    How is it that Arkansa joined the lottery after us and yet they have better scratchers and they have a state lotto game? Now mind you it may not be a large jackpot game but it's something and people are playing & winning it. Also get rid of the computer generated drawings. Bang Head

                    This is a step in the right direction by giving more money back to the players/winners.Thumbs Up

                    I hope things get better for you in OK, and you are right to complain to them.

                    But I wonder if they are making a mistake, eliminating the 0.75% ticket redemptions completely. It may just make retailers more grumpy in cashing tickets or drop Lottery sales altogether. Might be death by a thousand cuts. Other states do fine with 6% sales and 1% redemptions. Maybe they could try 5% and .5%.

                    They really need better than a measly $5 Scratcher with $50,000 prize as top ticket, as you have said before. And last year they only returned 51% of revenue as prizes, among the lowest of all states. They need to restructure games and prizes. And like they said, might need to re-examine than minimum 35% for public benefit. Since there are many casinos in the state, such poor lottery payouts just drives people to much better gambling options a little further away.

                      ressuccess's avatar - Lottery-043.jpg

                      United States
                      Member #93164
                      June 23, 2010
                      1322 Posts
                      Offline
                      Posted: March 22, 2013, 2:45 pm - IP Logged

                      I didn't know that operating expenses have fallen in Oklahoma. That's great work right there.

                        helpmewin's avatar - dandy
                        u$a
                        United States
                        Member #106665
                        February 22, 2011
                        19858 Posts
                        Offline
                        Posted: March 22, 2013, 3:40 pm - IP Logged

                        GuitarWTG! OK

                          dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
                          Oklahoma
                          United States
                          Member #82391
                          November 12, 2009
                          6290 Posts
                          Offline
                          Posted: March 30, 2013, 9:14 am - IP Logged

                          I didn't know that operating expenses have fallen in Oklahoma. That's great work right there.

                          sad but true.

                          I Love Pink & Green 1908

                            Avatar
                            Texas
                            United States
                            Member #132455
                            September 4, 2012
                            483 Posts
                            Offline
                            Posted: April 9, 2013, 5:28 am - IP Logged

                            It's great that the prizes will increase. However I feel pity for those staffs who became jobless for the sake of increasing the prize.