Transcript Document

WELCOME
TO THE
OKLAHOMA PUBLIC
HUMAN RESOURCES
ASSOCIATION
SUMMER QUARTERLY
TRAINING CONFERENCE
FRIDAY, JUNE 28, 2013
FRANCIS TUTTLE TECHNOLOGY CENTER
The “Oklahoma Education Lottery Act”
HB1278
passed the State Legislature on March 26,
2003, as State Question 705.
State Question 705 passed in all counties at the
general election on November 2, 2004.
928,442 (64.68%) for the proposal
507,077 (35.32%) against the proposal.
State Question 706, SJR 22
amended the Oklahoma Constitution to
create the Oklahoma Education Lottery
Trust Fund (OELTF
passed in all counties on November 2, 2004,
970,987 (67.94%) for the proposal; 458,122
(32.06%) against the proposal.
Title 21: Section 1051 A. - Lottery Defined
A lottery is any scheme for the disposal or
distribution of property by chance among persons
who have paid, or promised, or agreed to pay any
valuable consideration for the chance of obtaining
such property, or a portion of it, or for any share of
or interest in such property, upon any agreement,
understanding or expectation that it is to be
distributed or disposed of by a lot or chance,
whether called a lottery, a raffle, or a gift
enterprise, or by whatever name the same may be
known. "Valuable consideration" shall be
construed to mean money or goods of actual
pecuniary value.
Current Lottery
11/2/2004
State Questions Passed
1/23/2005
1st Bd. of Trustees Meeting
6/5/2005
Director Appointed
8/9/2005
Gaming Vendor Selected
10/12/2005
1st Lottery ticket sale
11/10/2005
Pick 3; 1st online game
1/12/2005
Powerball sales started
Some of the Attempts to pass a Lottery Bill
2/23/1982
House Rules Committee passed HB1790 by Nelson
“Freckles” Little. Speaker had assigned to 3 committees.
- To benefit state police (25%) and fire (25%) retm’t
funds; the elderly thru the Special Unit on Aging (50%)
of proceeds after prizes and expenses.
- House killed the bill, 72-21.
8/1/1983
Lottery petition filed by Dorothy Miller.
Editorial says it’s a “loser”; 7 member commission; 10%
tax on tickets paid to city in which lottery is located; if not
in a city, then to the county;
Not enough signatures to get on the ballot
11/8/1983
Sen. Dawson-D Seminole, filed SB344 to create a state
lottery; could net $57 million to the state; 30% to general
revenue.
Senate amended it to provide 50% to the State, then killed
it 3/1/1984, 27-14.
A group of six House members Monday offered a lottery
plan (Rep. Bill Lancaster, D-Wagoner, is principal author).
Defeated in House, 63-33, 2/29/1984
12/20/1984
Gov. Nigh proposes lottery in budget; Speaker Barker
supports it; $70 million to State; Senate leader opposes it.
House passed it; 1/23/1985.
Governor dropped it in face of Senate opposition.
Attempts (cont.)
2/5/1986
Sen. Lee Cate will try to revive lottery
bill; $57 million for state programs;
multiple beneficiaries. Rejected
2/11/86 by Senate Finance,7-5;
6/18/1986
“Lottery is OK” Committee and COOL
turn in petitions with more than
150,000 signatures (50k more than
needed). 9/30/86, Lottery petition
failed legal tests; not on Nov. ballot.
3/15/1993
Gov. Walters says boosters of a state
lottery hope to raise $1 million for the
initiative petition process; Supreme
Court okays petition, 2/25/94.
Various Opposition to Lottery
5/16/1986
Julian Fite, candidate for AG is 1st major candidate for
state wide office to announce opposition to lottery
proposal
6/19/1986
Coalition on Moral Concerns says they will challenge the
petitions. Horsemen challenge lottery.
7/19/1986
Group called “Alert”, made up of business &
professional people formed to protest the lottery
proposal
9/4/1986
OSBI Director thinks petition would open up OSBI files
to Lottery Commissioners; Central Services Director says
Lottery should have to use Central Purchasing. Gov. Nigh
said he will wait until he talks to OSBI.
7/27/1993
Forrest Claunch; Wes Watkins; and Neva Hill announce
“Oklahomans Against the Lottery”
8/10/1993
State horsemen and racetracks challenge the lottery
proposal.
8/12/1993
Oklahoma Christian Coalition challenges the lottery
proposal
1/25/1994
Lawmakers concerned that approval of a lottery could
open door to casino-type games in tribal locations.
3/13/94
HALT PAC, a group of horsemen claim lottery will cut
racing revenues by 18% (and claim studies show TX,
Trinity Meadows Raceway lost 20% of attendance and
handle after lottery started up)
Various Opposition to Lottery (cont.)
4/14/1994
All eight candidates for governor of Oklahoma said
Wednesday they are opposed to or have major concerns
about the lottery proposal facing Oklahoma voters May 10.
4/21/1994
An anti-lottery leader called Gov. David Walters' lottery
proposal an "invitation to corruption" Wednesday.
4/24/1994
David McCullough of Freedom of Information Oklahoma,
Inc., said he's concerned that records kept by the president
of the proposed Lottery Authority could be confidential
because the president will not be a state employee.
5/8/1994
Gambling with a lottery is essentially throwing your money
away. The lottery is a game for chumps.
5/8/1994
A VOTE for State Question 658 next Tuesday is almost
certainly a vote for casino gambling on Indian lands – and
tribal lotteries as well, if the tribes want them.
5/11/1994
With all 2,207 precincts reporting, voters defeated State
Question 658 by a 417,532 to 280,152 margin. The lottery
was defeated in 74 of the state's 77 counties.
History of the Modern U.S. Lottery
1964
1st modern lottery; NH
1967
NY lottery (in FY’11, $6.8 Billion in sales plus $1.1
Billion from VLT; $3.1 Billion to beneficiaries)
1970’s
12 additional state lotteries
1980’s
18 additional state lotteries
1990’s & 2000’s
13 additional state lotteries
(plus Wyoming soon; Gov signed 3/13)
45 (incl. D.C. and U.S. Virgin Islands)
WY
LOTTERY MACHINES / JACKPOTS
1981
NY launched first computerized game
6/49 with a $5 million JP.
1982
Video Lottery Terminals (lottery version
of slot machines; mostly for bars)
1980’s
NY introduces KENO
Player Activated Terminals to sell
instant and online
1991
CA had $118 million JP
LARGEST U.S. JACKPOTS
3/30/2012
MM: $656 Million; Cash $471 Million
3 tickets sold in MD, IL and KS
11/28/2012
PB: $587.5 Million; Cash $384.7 Million
2 tickets sold in MO and AZ
3/6/2007
MM: $390 Million; Cash $233.1 Million
2 tickets sold in GA and NJ
1/4/2011
MM: $380 Million; Cash $240 Million
2 tickets sold in ID and WA
2/18/2006
PB: $365 Million; Cash 177.3 Million
Single winning ticket sold in NE
5/9/2000
Big Game: $363 Million; Cash $180 Million
2 tickets sold in IL and MI
Out of top 16 annuitized jackpots:
MM = 6
PB = 8
Big Game = 2
Today, there are 45 U.S. Lotteries
including D.C. & the U.S. Virgin
Islands, with Wyoming to become
the 46th.
The Oklahoma Lottery is one of the
last modern day lotteries to be
created.
States that have not created or
authorized a lottery yet are:
Alabama
Alaska
Hawaii
Mississippi
Nevada
Utah
The Oklahoma Lottery sells the following
Lottery products:
Scratchers (Instant win Lottery tickets)
($1, $2, $3, $5; 1:4.81 to 1:3.46; $777 - $40,000)
Numbers games:
- Pick 3 ($1)
- Pick 4 ($1)
Lotto:
- Cash 5 ($1; 5/36)
Multi-state Jackpot Games:
-Hot Lotto ($1; $1 multiplier; 5/47 & 1/19)
- Powerball ($2; $1 multiplier; 5/59 & 1/35)
- Mega Millions ($1; $1 multiplier; 5/56 & 1/46)
Sales estimates for FY’2013, the current fiscal year, are:
Product
Instant (Scratchers)
Sales
$ 88,800,000
% of Total
44.51%
10,300,000
5.16%
8,300,000
4.16%
MegaMillions
16,100,000
8.07%
Powerball game
76,000,000
38.10%
$ 199,500,000
100.00%
Instate Online (Daily) Games
Hot Lotto game
Lottery Game Revenues
Sales
76,000,000 ,
38%
$88,800,000 ,
45%
16,100,000 ,
8%
8,300,000 , 4%
Instant (Scratchers)
Hot Lotto game
Powerball game
10,300,000 ,
5%
Instate Online (Daily) Games
MegaMillions
Operating expenses have been reduced from $9.77 million in FY’2008 to
$4.88 million budgeted for FY’2014. From the end of FY’2012, to the
FY’2014 budget, payroll has been reduced more than $300,000 and FTE
reduced from 34 to 26. If the board approves a couple of new initiatives,
we will add 2 more employees in FY’2014, paid for by additional savings.
Oklahoma Lottery Commission
Transfers to Oklahoma Education Lottery Trust Fund (OELTF)
Projected thru FY'13
Fiscal Year
Transfers
FY 06
$68,948,959
FY 07
69,378,465
FY 08
71,608,831
FY 09
69,226,501
FY 10
69,974,064
FY 11
69,396,091
FY 12
69,990,674
Total transfers to OELTF thru FY'12
488,523,585
Projected FY'13 transfers*
69,864,900
Projected total transfers thru FY'13
$558,388,485
* based on projected FY'2013 sales as of 6/27/2013.
According to the Oklahoma Constitution, the
Oklahoma Lottery beneficiaries are:
1. Kindergarten through twelfth grade public education,
including but not limited to compensation and benefits for
public school teachers and support employees;
2. Early childhood development programs;
3. Tuition grants, loans and scholarships to citizens of this state
to enable such citizens to attend colleges and universities
located within this state which are accredited by the Oklahoma
State Regents for Higher Education or to attend institutions
operated under the authority of the Oklahoma Department of
Career and Technology Education;
4. Construction of educational facilities for elementary school
districts, independent school districts, the Oklahoma State
System of Higher Education, and career and technology
education;
5. Capital outlay projects for elementary school districts,
independent school districts, the Oklahoma State System of
Higher Education, and career and technology education;
6. Technology for public elementary school district, independent
school district, state higher education, and career and
technology education facilities;
7. Endowed chairs for professors at institutions of higher
education operated by the Oklahoma State System of Higher
Education;
8. Programs and personnel of the Oklahoma School for the Deaf
and the Oklahoma School for the Blind;
9. The School Consolidation and Assistance Fund; and
10. The Teachers’ Retirement System Dedicated Revenue
Revolving Fund.
State Statutes set additional parameters:
• Items 1 and 2 = 45%
• Items 3 through 8 = 45%
• Items 9 and 10 = 5% each
Issues facing the Lottery
• No support from legislative leadership or Governor to
change restrictive laws
• Periodic attacks on the Lottery by politicians, the press,
or anti-gambling interests
• Maintaining credibility despite the politics
• Maximizing our profit for our beneficiaries
• Legal restrictions that limit profitability
•
Minimum 35% profit requirement
•
Limits on locations where lottery products can be sold
•
Limits on types of games that can be offered (video, Keno)
•
Limits on other aspects of conducting business
•
Employee pay
•
Advertising restrictions
•
Prohibition on some use of the Internet
•
Restriction to “cash only” for purchase of tickets
Largest issue facing the Lottery is one of profitability
The Lottery exists to provide funding for Oklahoma
education programs. The Lottery Act indicates that all
profits go to the State to benefit Oklahoma Education.
The Act also says the Lottery is to “Maximize” profits
for education.
The main restriction on Lottery profitability is the
minimum 35% profit requirement.
By requiring a set % as a profit, the amount of funding
that can be put into prizes is restricted. This limits the
acceptance of the products by the players, limiting
both sales and profits.
Every state lottery that has improved payouts has
dramatically improved sales and increased profits for
their beneficiary.