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Video gaming machines boost Oregon Lottery revenues

Oregon LotteryOregon Lottery: Video gaming machines boost Oregon Lottery revenues
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State economists say Oregon is seeing a healthy bump in lottery revenues, at least partially from recently installed video lottery machines.

People are spending more money on Oregon's new video lottery machines, state economists told lawmakers in Salem this week.

Some people believe the new machines are more addictive, but a top Oregon Lottery official has said it's unclear whether there is a connection between the new machines and increase in gambling.

On Dec. 2, economists from the state Office of Economic Analysis said they see a relationship between the new machines and a bump in state lottery revenue.

"We think some of that has to do with the new terminals," said Senior Economist Josh Lehner.

Lehner and state economist Mark McMullen pointed to a graph that showed the latest jump in video lottery spending — the state refers to this as video lottery "sales" — began when the state was installing the new machines and leveled out when there were at least two new machines at every establishment around the state. The state lottery is expected to generate approximately $1.2 billion during the current two-year budget, which is roughly 6 percent of the state's $19.5 billion in available revenue, according to the Legislative Revenue Office.

The importance of gambling to the state budget is an uncomfortable subject for some lawmakers, as was evident when the House and Senate revenue committees discussed the latest forecast. Two Republican lawmakers disagreed with an assertion by state economists that although more low-income people might gamble, wealthy people spend the most on gaming.

"If you look at these places, I don't see any of us in there pulling handles," said state Sen. Brian Boquist, R-Dallas. "I don't see the rich in these establishments ... What I see in my district is the poor playing it."

According to the latest forecast, there were large increases in video lottery gambling even in areas of the state where people continue to struggle after the last recession.

"Even in some of Oregon's hardest hit counties, those that have yet to fully partake in the economic recovery, growth in video lottery sales is roughly 10 percent over the past year, following the roll-out of the new terminals," state economists wrote.

Rep. Phil Barnhart, D-Eugene, said Oregon's lottery system came about through an initiative petition by a company that produced gaming products. Barnhart said the fact that some people spend a significant amount of their income on the lottery is "probably not a good proposition," but "the fact is the state depends on the revenue these games produce, and that gives us a very ambivalent view of these games."

None of the lawmakers suggested Oregon should scale back its lottery or stop the video lottery machine upgrade, which is budgeted to cost the state $215 million over four years.

Overall, state "vice" revenues — including cigarette and liquor taxes — are on an upward swing, state economists said.

"Boy, vice is still alive and well in Oregon," McMullen said. "While it's encouraging for a bean counter maybe, it's kind of scary because of the Sodom and Gomorrah kind of thing."

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East Oregonian

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8 comments. Last comment 12 months ago by Tialuvslotto.
Page 1 of 1
lulu1feather's avatar - 2uehclf
Oregon
United States
Member #168137
August 17, 2015
124 Posts
Offline
Posted: December 7, 2015, 4:00 pm - IP Logged

So when do we get to win a PB or MM again in Oregon? Im ready when you are!

    noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
    Bay Area - California
    United States
    Member #136477
    December 12, 2012
    4104 Posts
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    Posted: December 7, 2015, 4:06 pm - IP Logged

    Weshar75 must be doing cartwheels....

    People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

      realtorjim's avatar - images q=tbn:ANd9GcT7U3t20NgScoPlxOqLT6TR0vQeJNBV3_tTswe1XeFDTsdw3NLZ

      United States
      Member #106923
      February 27, 2011
      476 Posts
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      Posted: December 7, 2015, 4:50 pm - IP Logged

      So when do we get to win a PB or MM again in Oregon? Im ready when you are!

      Lulu, you know better!  The PB is not for winning, it's just for playing.  You have video games now to make you feel like you've won something.

        I'm feeling a jackpot win coming my way!

        weshar75's avatar - Lottery-042.jpg
        Mcminnville, Oregon
        United States
        Member #3013
        December 13, 2003
        3047 Posts
        Offline
        Posted: December 7, 2015, 5:22 pm - IP Logged

        Weshar75 must be doing cartwheels....

        My mom was jumping for joy in 2013 when she hit $5000 on lotus flower slot machine from oregon lottery.  She bought me some new clothes and took me out to dinner a bunch of times off that money.-weshar75

        US Flag

          noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
          Bay Area - California
          United States
          Member #136477
          December 12, 2012
          4104 Posts
          Offline
          Posted: December 7, 2015, 6:54 pm - IP Logged

          My mom was jumping for joy in 2013 when she hit $5000 on lotus flower slot machine from oregon lottery.  She bought me some new clothes and took me out to dinner a bunch of times off that money.-weshar75

          US Flag

          Good for Her, what a generous Heart- it's time you paid the Ol Girl back with some serious cash. 

          People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.


            United States
            Member #108380
            March 25, 2011
            505 Posts
            Offline
            Posted: December 7, 2015, 7:54 pm - IP Logged

            so oregon has a state economist, a senior economist, and probably a whole gaggle of other economists who gather around at the taxpayers expense to garble about their theories on this. are these people elected or are these patronage jobs doled out by some corrupt politician. of course if you put in glossy new lottery machines of this type the less than affluent are going to play them. rich people like these 2 clowns don't play them. just another glitzed up way to extract money from the poor.

              lulu1feather's avatar - 2uehclf
              Oregon
              United States
              Member #168137
              August 17, 2015
              124 Posts
              Offline
              Posted: December 7, 2015, 7:58 pm - IP Logged

              LOL So true! Sometimes my wishful thinking gets extra carried away! Hippy

                Tialuvslotto's avatar - Jailin
                Texas
                United States
                Member #150797
                December 31, 2013
                815 Posts
                Offline
                Posted: December 8, 2015, 7:37 am - IP Logged

                Gag me!  State lawmakers are worried about the gambling amongst the poor, but they sure do love to spend dat money!

                Buncha hypocrites.

                "There is no such thing as luck; only adequate or inadequate preparation to cope with a statistical universe."

                ~Robert A. Heinlein