Lottery Commission Defense

Background

Every time the Lottery contract comes up for renewal, it gets more contentious. The Legislature continues to introduce bills to lower commissions, but to this point none have made it to the floor of either chamber.
Retailers have changed their business plans, and spend resources attracting and serving lottery customers. If retailers do not serve these customers, schools, parks, and economic development dollars all suffer. The constant attacks on retailers by legislators’ editorial boards and school groups are making retailers more frustrated. If the attacks continue, the state’s entire lottery system will suffer.
Since 79% of the money produced by retailers goes to state programs, the decision by a restaurant owner to give up their lottery machines would mean major losses for schools. Restaurant employees could also suffer, because the reduction in lottery revenues will cause lost jobs and lost benefits.

Issue

Lottery has been one of the most consistent revenue sources for the State of Oregon and schools since it started in 1984. It has become one of the most successful lotteries in the country. Under the current pay structure, the state gets the best deal in the country and retailers are paid the lowest rate of any retailers nationwide.

ORA Position

Protect the lottery system as it exists today; lowering commission rates runs a larger risk of costing state programs much needed revenues. The state needs to protect and encourage its retailer base that has made Oregon’s Lottery the most successful in the country.