Illinois border states report increased lottery sales

Oct 27, 2015, 9:54 am (28 comments)

Illinois Lottery

CHICAGO — With Illinois delaying payouts of more than $600 because of its budget mess, neighboring states are salivating at the chance to boost their own lottery sales. Businesses near borders, particularly in Indiana, Kentucky and Iowa, say they've already noticed a difference.

The Lottery problems stemming from Illinois' budget impasse have led to a lawsuit and come amid questions about Illinois revenues and a shake-up in lottery management.

Many gas stations, smoke shops and convenience stores in states bordering Illinois say they first noticed an increase in August, when the state said payouts over $25,000 would have to wait because there wasn't authority to cut checks that big. Now those businesses are reporting a bigger flurry since Oct. 14 when the Illinois Lottery announced it had lowered that threshold to payouts over $600.

Idalia Vasquez, who manages a GoLo gas station in Hammond, Indiana, said irked Illinois residents have been streaming in to buy lottery tickets. She estimates ticket sales are up as much as 80 percent since Illinois' second delay announcement.

"We have long lines, but they're patient with it because Illinois is not paying," Vasquez said of the store roughly 20 miles from Chicago. "They're all coming here and saying, 'I'm from Illinois, how do you play it here?'"

The Hoosier Lottery even issued a statement welcoming Illinoisans.

Lotteries in Missouri, Indiana, Iowa and Kentucky say sales have increased since Illinois first set a cap on prize payouts. But they all caution that other factors might be in play.

In Kentucky's McCracken County, along Illinois' southern border, there was a 13 percent jump in scratch-offs from July 1 through Oct. 9, compared with a 9 percent jump statewide.

One retailer with higher sales is Paducah's Kentucky Tobacco Outlet, where most of customers are already from Illinois. According to manager Michael Coomer, those customers are now buying more and say trust in Illinois is gone.

"It's definitely known and very vocal," he said of Illinois' problems. "It's definitely going to be better for us."

Ticket sales in the St. Louis area were up 3.8 percent from June to Oct. 17, while Missouri saw a 3 percent jump. Iowa Lottery officials said five counties bordering Illinois are seeing recent sales that far outpace the overall 3.66 percent increase statewide this fiscal year compared to last. Hoosier Lottery officials said northwestern Indiana counties near Illinois also posted an increase. Wisconsin couldn't provide figures.

The Illinois Lottery declined to release its ticket sales data, and spokesman Steve Rossi refused to answer questions about the impact of delaying payouts. He said revenues are still going to a school fund, which is required by law.

It's hard to say when Illinois lottery payouts will resume. The Illinois Lottery is one casualty of the budget stalemate and there's no sign of when it'll end.

First-term Republican Gov. Bruce Rauner and the Democrats who control the Legislature haven't been able to agree on a spending plan for the fiscal year that began July 1. Rauner wants to enact pro-business changes before signing off on a budget. Democrats want Rauner to support new taxes. Meanwhile, most state money is being spent at unsustainable rates through state laws and consent decrees.

An attempt in the Legislature last week to release money to lottery winners and others didn't make it to the floor.

For now, anyone who wins more than $600 won't get their money right away because the office doesn't have money in the account used to pay those winnings.

Winners have already filed a federal lawsuit seeking payment with interest.

Complicating matters for the lottery is its search for a new lottery manager after terminating its contract with private company, Northstar Lottery Group, over concerns about management. A legislative report showed the Lottery saw a drop in proceeds last year for the first time since 2009.

The state has put out feelers for a replacement, with responses due Wednesday. After that, there will be requests for proposals.

It will take time. Under the termination agreement Chicago-based Northstar will continue operations until 2017 when a new company is expected to take over.

Journal Star, Lottery Post Staff

Comments

noise-gate

For lack of a better word.." F- Yeah". Serves Illinois right.

Gleno's avatarGleno

This is what happens when states such as Illinois, become derelict in their duties.

People see what's happening and go to sources nearby to meet their demands for a

chance to win and not have to wait for payment until the budget issues are settled.

No No

JADELottery's avatarJADELottery

Well, good for them.

It's a double whammy, no dollars to the Illinois Lootery and take dollars out of the state.

If your playing Iowa and win big, Move there, stay long enough to be a resident then claim the prize and screw Illinois out any chance of getting tax revenue.

Iowa has 1 year to claim and I think you need to be a resident at least half the year to counted as Iowaian.

The other states, I'd find a family member or very close friend and broker a deal so they claim the prize and yet again, screw Illinois out the tax revenue.

RJOh's avatarRJOh

Before anything really changes in Illinois they'll have too see a MM or PB jackpot won by a resident of their state in a neighboring state.  Then and only then will they realize how much the state is losing in lottery money to the neighboring states.

DELotteryPlyr's avatarDELotteryPlyr

Quote: Originally posted by RJOh on Oct 27, 2015

Before anything really changes in Illinois they'll have too see a MM or PB jackpot won by a resident of their state in a neighboring state.  Then and only then will they realize how much the state is losing in lottery money to the neighboring states.

Good point.  I also think the other states should run promos for games they want Illinois residence to 'try' which they might normally not.  For me a good promo is buy 3 get 2 games free, as its close to 1/2 price per game.

Erzulieredeyes's avatarErzulieredeyes

I don't blame them.  I would do the same if my State ever had the nerve to present me with an I.O.U.

I'd tell them F-YOU! After I've taken my I.O.U. of course. LO L

zephbe's avatarzephbe

No money in the lottery account?? what happened to it?

music*'s avatarmusic*

 I believe it is time for the voters to rise up and demand change in Illinois.  They are already voting with their feet and cash.Hit With Stick

Drenick1's avatarDrenick1

I find it odd that the lottery money wasn't held in a separate account as it should be it's own entity. Mixing all the lottery proceeds into the states account just leaves itself vulnerable to being siphoned away by another branch of the government.

I hope other states don't utilize the same practice or this same scenario will play out again in the near future.

savagegoose's avatarsavagegoose

Quote: Originally posted by RJOh on Oct 27, 2015

Before anything really changes in Illinois they'll have too see a MM or PB jackpot won by a resident of their state in a neighboring state.  Then and only then will they realize how much the state is losing in lottery money to the neighboring states.

I would think  the take not covering wages for operations would be a  critical point, as they point out, payouts dont matter, but missed wages  bring the whole business down

JADELottery's avatarJADELottery

Lottery in the Politician's Eyes

SergeM's avatarSergeM

Cash driven

Gleno's avatarGleno

With tonight's Mega Millions at $117M, anyone willing to bet that their sales are not going to go up because of their budget impasse?

Any protest calls being made by the public of Illinois to get that budget through for approval ?

Thud

ArizonaDream's avatarArizonaDream

I wish I lived closer to Indiana or Wisconsin.

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