CHEYENNE, Wyo. — As Wyoming loses millions of dollars in revenue from its declining minerals extraction industry, the state lottery has started paying off by distributing some of its profits to cash-strapped cities and towns.
A member of the board that oversees the Wyoming Lottery says the state might want to look at an expansion to tap even more revenue. But that would require expanding the type of games allowed — a prospect that faces long odds in a Legislature wary of encouraging compulsive gambling.
WyoLotto started selling tickets in 2014 after the Legislature authorized its creation. Under the law, the lottery must share the first $6 million of its profits with municipalities. Anything above that will go to K-12 public schools.
Earlier this year, the lottery handed over its first proceeds — $1 million — to the state. WyoLotto estimates that it will be turning over about $3 million a year to the state from the sale of Powerball, Mega Millions, the state Cowboy Draw and the new Lucky for Life draw games, Lottery CEO Jon Clontz said.
But the lottery is limited to draw games, so new offerings likely are not on horizon, meaning Wyoming won't get much more than $3 million a year.
A study by WyoLotto staff last year estimated that adding more lucrative instant-win scratch ticket games would boost total lottery proceeds to the state to about $12 million a year, Clontz said.
"So you can see how much we're leaving on the table by not having scratch products," he said.
Wyoming derives most of its tax revenue from the mineral extraction industry. However, low coal prices, growing wind and natural gas competition, and new federal regulations have taken a toll on the industry.
Jim Whalen, a member of the Wyoming Lottery Commission, says the state might want to consider an expansion to tap revenue potential.
"When I look at our state, and I think OK, so we are in situation clearly that we're suffering a little bit in terms of our revenue," Whalen said. "While the lottery was never intended, I don't think, to essentially augment the revenues for the state of Wyoming in order to pay bills, frankly, this could be one of those unintended benefits of creating a lottery."
Rep. Dave Zwonitzer, who was the main sponsor of the legislation in 2013 that created the Lottery, said he hasn't heard of any expansion proposals.
"But it would not surprise me if a bill to that effect shows up," said Zwonitzer, R-Cheyenne. "I know several communities would be very much in favor of it, but I know a lot of the state would not be in favor of it."
Another supporter of the 2013 lottery bill, Sen. Michael Von Flatern, R-Gillette, said he wouldn't vote for an expansion because the legislation passed on the promise that instant-win games like scratch tickets would be prohibited.
Sen. Leland Christensen, who opposed creating the lottery, said he would be open to looking at any new proposals. But the Republican from Alta said he would need more information about the amount of money people spend on the lottery and how much is returned to the state.
Wyoming losing millions from declining mineral extraction? Hello! Who do you like? Clinton = Same old same old. Or Trump? America first! Its really sad that a State has to rely on lottery money. Come on people, WAKE UP!
President doesn't have power...President is run by others behind the curtains
Keep the Mega Millions and Power Ball jackpots recording record jackpots and then this will help Wyoming. Here's to our Veterans on Memorial Day 2016!
Who are the Puppet Masters?
expand the lottery to solve $$$$ problems..
Alaska and Texas (also states that depend on energy revenue, and also have no state income tax on citizens) have pretty high property taxes. Not California or New York high property taxes, but not cheap either.
Alaska used to offset it's citizens property tax by distributing a check back to homeowners with the surplus energy income after the State's bills are paid. Now they are talking about getting the Lottery up there. Rut row.
I'm not sure how Texas does business with it's citizens, but they also have the Lottery, so I'm sure they are treading lightly. Rumblings of imposing a state income tax has been bouncing around Texas and Florida for the past few years, but maybe the Lottery has staved off that last resort so far.
Wyoming's property taxes are very low and corporate taxes are practically nil in comparison to most states. I would think that having Yellowstone National Park, Grand Teton National Park and other protected lands would have federal income going to the state, but maybe not. If they don't want to raise property or corporate taxes, or impose a state income tax, expanding the Lottery may be their only choice.
Just an observation.
Hey Lotto...Ever hear of the EPA. Yes, the President has the power.
Interesting Post...Who would you like to be in charge of the EPA since it's responsibility is to provide clean air, water etc for the country- if not the President appointing this agency, who then? For One,Donald Trump told Californians that there is NO Drought out here.This drought has affect 95% of this State,l know this because l live here,yet he says it does not exist.Has he just dropped in on Earth to throw in his 2 cents on his way to his home Planet?
Why in the heck is every state dead broke even though we are taxed to death? Really! I think David Lee Edwards would have done a better job running state budgets than these morons we have in office.
Also, expanding the lottery in a "Cain't win" state is a ridiculous idea.
Yea, months of drought and months of heavy rain. I heard the eco-nuts have been preventing California from building reservoirs for years. Is that correct?
Educate yourself get out of your fools paradise
Presidents are showpieces lmaooooo....and all these shouting they know to be elected they have to bow down to the "Printing Press" owners the private owners of Federal Reserve Bank or else they would be thrown into garbage hahaha....Just like it happened to JFK
The President has the power your correct on Hosting dinners and sharing jokes LMAOOOO
The "Private Owners" of the so called Government Bank the Federal Reserve LMAOOO..Don't forget to check it :DDDDD
Yes, he does. (and hopefully not a "she", at least not for four/eight more years) Nixon created the EPA via Executive Order and it only had to be approved of by House and Senate Committees, not voted on by Congress, thereby bypassing the will of the people. They pass down mandates with the force of law, the enforcements of which depend upon which party is in power at the time. They recently had their "hat" handed to them over a Wyoming man who created a small pond on his property, fed by a stream and he had made it so "green" that the water flowing out of his pond was cleaner than what flowed into it, but the EPA cited him and tried to fine him 75 grand/ day (16 million bucks!) until a judge ruled in the landowner's favor. Just one example among many more where they have much more overreach than should be allowed.
Whatever (debatable) good they've done recently was wiped out by their responsibility in directly causing last year's Gold King Mine waste spill. The Obama Administration labelled it an "accident" but evidence points towards it being intentional. (I'm just about the least conspiratorial person there can be, but this def. smacks of conspiracy) Then there's their directives about coal plant emissions, directives which were ordered by this Administration, but thank goodness the SC dealt a blow to that.
The EPA and many of the other "Alphabet" federal agencies need to be done away with or at the very least, be severely limited in their un-Constitutional power.
Of course, the partisan hacks/ignorant numbnuts in this thread would differ, of course. They are to Obama what Monica was to Bill Clinton.
BTW, I despise Trump, I think he's a buffoon, but Clinton is not only a criminal, but criminally inept and while I'd prefer neither be POTUS, I'd rather have a clown than a crook for President.
Also, OneTrickpony, Texas doesn't have a property tax, we have a real estate tax and it's on the local level, not state, and pays for city and county law enforcement, local bridges/roads, municipal services ,etc. Yes, it's high, but there are deductions a homeowner can take, such as the homestead exemption as well as another for those aged 65 or older. It depends upon the local taxing entity, but I pay a fair and reasonable amount of tax on my home. It's the fast-growing places such as the many suburbs of Dallas which have higher valuations because city services are expanding at a proportional rate to their growth...and they're the ones skewing the stats. The state is funded by a portion of our sales tax (which is high, admittedly) and other taxes on oil/gas, cigarettes and other sin taxes, many other types of taxes. There have been no "rumblings" of a state income tax, but rather "whispers" and if the politician speaks of it, then they're quickly voted out.
Terrific post Mike. You said much better than I ever could.
One of the biggest problems in the country IS all of the "alphabet" agencies in the federal government. And the people that love these agencies are probably the same ones that love Hilldog.