Lawmakers cite concerns over gambling-funded education
By Kate Northrop
A bill introduced to New Mexico state legislature proposed the idea of ending the New Mexico Lottery entirely.
Lawmakers in New Mexico are discussing a bill that may shut down the state lottery, citing concerns about where money for the state's scholarship fund comes from.
"We're funding education through gambling," State Representative Matthew McQueen (D) said.
Bipartisan House Bill 369, if passed, will end the New Mexico Lottery and change the name of the "Lottery Scholarship" to "Legislative Tuition Scholarship."
According to the Lottery, more than $970 million has been raised for New Mexico education, a figure that members of the Lottery Board argue should be considered in such a drastic decision.
"30 percent under the mandate of the state law goes back to the students, and 80 percent of the money staying right here in the state," New Mexico Lottery board member David Keylon stated.
A document submitted to legislature shows that 27 schools have scholarship recipients thanks to the Lottery Scholarship funded by the New Mexico Lottery. In Fiscal Year 2022 alone, over 20,000 students attending those 27 schools received lottery-funded scholarships.
McQueen and State Representative Jason Harper (R) say that education should not be funded by gambling.
"The lottery is obviously gambling," McQueen contended. "It's detrimental to the pocketbooks of New Mexicans. It's not a particularly good investment for the state. Lottery players lose at least half of their money off the top because only half goes to prizes. That's assuming you win. The state only gets a small share of the revenue that's made anyway."
Rather than drawing from revenue generated by the lottery, McQueen and Harper's bill would require that the state pull from its general fund to cover the college scholarships, about $40 million annually.
"We're actually considering putting an amendment that would push it out, maybe a year or two, so that we could actually build that into the budget," Harper added.
Only five U.S. states do not have lotteries: Alabama, Alaska, Hawaii, Nevada, and Utah. Alabama has ritually shut down any attempt to start a lottery, while Utah has not seen a new initiative since 1992.
"Research shows that lower income folks spend a much higher percentage of their income on lottery tickets," McQueen continued. "Maybe if you're making a lot more money, you can afford to buy a lottery ticket now and then. I think the lower income people are actually buying more tickets."
While McQueen and Harper acknowledged the good that the Lottery Scholarship has done for students and education, they say that it is now time for a change.
"I have some concerns about the oversight, and this [Lottery] board, and where the lottery is going," Harper said.
Thanks to lakerben for the tip.
lol, not gonna happen.
The Solution is Simple 🙂 Make it 50/50 split . Half for Education Half for state So they all stop Whining 🤣
Mostly lotteries are driven by greed, two drawings a day instead of one, two dollars a game instead of one,,misappropriation of funds. New Mexico is doing something wrong.
Very nearly happened in Texas in 2013, until legislators realized they were about to flush $2.2 billion for education fund down the drain.
However, there are some diehards that will bring it up again in 2025.
If they kill the lottery then, OK is about 45 minutes away to get my tix.
"Research shows that lower income folks spend a much higher percentage of their income on lottery tickets," McQueen continued. "Maybe if you're making a lot more money, you can afford to buy a lottery ticket now and then. I think the lower income people are actually buying more tickets."
If that's really a concern, then they could commission an up-to-date study to see precisely how the availability of lottery products affects low-income New Mexicans. I suspect McQueen is just parroting an out-dated talking point.
It's also entirely within the state's power to restrict retailer licenses in such a way that lottery products are not so readily available in low-income neighborhoods, if that's really what their concern is.
As in California, I suspect that in New Mexico this backlash against the lottery originates with tribal casino interests. If predatory gambling was really their concern, they'd also push to amend the state-tribal gambling compacts as well. But they aren't. Hmmm....
What these two "gentlemen" don't seem to realize is that by eliminating the lottery in "your" state, you do not stop "your" citizens from playing the lottery. What you are doing is creating more revenue for the states of Arizona and Texas, which is where all the lottery players will go to continue to play the lottery. It's a ridiculous bill that will not pass.
They are running a tight ship. It's the two legislators that despise gambling. They think everybody is losing when many have won big. I've emailed several legislators and the lottery commission is fighting it.
I've done very well and my friend won $90,000 on the Roadrunner cash game. But ironically there are casinos everywhere in the state but most are covered by sovereign nation status so the legislators cant touch them.
You are correct but they cant touch the tribal casinos that have sovereign nation status. They are getting a huge backlash but they could still win out. But the lottery players will head to the casinos .
We have another month in the session and every year it's one ridiculous bill after another. They may shut down the lottery but they do nothing about the crime in the state.
You are right about the do nothing about crime. I'm from NM and understand the crime problem the state has.
The casinos will win big, I have to wonder if someone in the New Mexico Government is in bed with someone at the Casino, we are talking millions of dollars.
What a Cretin!
"Research shows that lower income folks spend a much higher percentage of their income on lottery tickets," McQueen continued.
How did someone as moronic as McQueen get elected in the first place?
It's called MATH! Not reasearch.
If an 18 year old kid makes $500 on a summer job and spends $500 on lottery tickets then they spent 100% of their income on tickets.
According to information from a google search the median income in New Mexico in 2022 was $51,243 so if someone making median income spent $500 on tickets that would be about 0.976 percent (about 1%) of their income.
McQueen is either really ignorant and stupid or highly biased and self serving.
Sorry but I am getting less and less tolerant of really stupid statements made by elected officials due to the fact that most of the officials are getting less and less competent.
"McQueen and State Representative Jason Harper (R) say that education should not be funded by gambling. "
It isn't up to biased Bozos to decide this issue. It should be put up in front of the citizens of New Mexico to vote on rather than be dictated to everyone by a bunch of biased bozos.
This probably won't happen. Other legislators will realize how much money the lottery generates and will try to keep it alive. New Mexico isn't a wealthy state and doesn't have a lot of people, so I'm sure they'll try to keep the cash flowing.
I wonder though if it's really a concern for low income people or something else. I live in a state that also has casinos and when a third casino wanted to open in my city, there was a lot of opposition and even a massive publicity campaign to keep it out. What got me about it was the opposition to the third casino was actually having its activities funded by the two existing casinos in the area who didn't want the competition. I wonder if there's an interest that wants to bring more casinos or some other type of gambling to New Mexico and wants the lottery gone to get rid of competition. You never know.
Another bit of trivia during economic downturns, lottery ticket sales supposedly increase, so the thing about low income people spending more of their income on tickets does make sense. There are also many things low income people spend more money on like cigarettes and alcohol, which also generate a lot of tax revenue. I can't see those being banned anytime soon.
Tax on the poor. Which is still true. Shoot, Mary Jane is legal. Denial is an oversight. Facts are facts. Show me someone or something making that much and willing to stay in the state. They're jumping the ocean to settle in the commonwealth. And still call themselves American. Run from the tax man. Same old story since the beginning.
Are you French? I only hear French people say that word. Cretin. Haha, and they usually say it about their kids.
* ..Yet New Mexico has legalized Marijuana, go Figure.
The same in nevada...they feel lotto takes away from the casinos which produces more profit
You are right! They legalized pot and now everyone drives like sh@#$! Two do gooder legislators have got it all figured out. I email both of them with a colorful verbiage. Oh well, it's gone to a committee so it's time to wait and see.
Ya still have online betting. That won't go away.
lmfao. too funny.
We live in a staged world. They will do what they want too.
I think you nailed it. If the local news media would launch an investigation I would be willing to "bet" that's exactly what's going on. Otherwise, it makes no sense.
They have been trying for years . It won't be long and they will be arresting all the old ladies at the bingo hall.
"According to the Lottery, more than $970 million has been raised for New Mexico education, a figure that members of the Lottery Board argue should be considered in such a drastic decision.
"30 percent under the mandate of the state law goes back to the students, and 80 percent of the money staying right here in the state," New Mexico Lottery board member David Keylon stated."
They have argued but the legislators are not listening.
Oh, NO! Don't ever shut down the Lottery. That's a financial life-line.
Power Ball better goes back to 2 draws a week because it makes the poor lose more money. Roll over also slower than 2 draws a week Mega Million.Each state have their choice,casino or lottery....
I feel make it the same across the board for all states; 1 drawing per day. That would eliminate low income from being big time losers from the greed of high rollers. All will be replaced with sport bets eventually. That's the elites agenda.
Assume that $970m to education is 30% of total revenue..
That means that punters "invested" something of the order of $3,233 million..
population of NM is about 2.116 million
That means that if everyone (ages 0-150 years old) in NM was contributing equally.. They would be spending approx. $1,500.
not everyone plays... so the average annual expenditure will be higher (That is already approx. $30/week).
If the 30% is of revenue after paying prizes... expenditure is essentially doubled... $60/week per capita.