Mississippi panel studying other state lotteries

Sep 6, 2017, 8:10 am (11 comments)

Mississippi Lottery

JACKSON, Miss. — A special House panel has been looking at other states' experience with lotteries as it works on a study requested by House Speaker Philip Gunn, who opposes a lottery for Mississippi but says he wants the issue thoroughly vetted.

Members of the House Lottery Study Working Group — comprised of lawmakers, state gaming and other officials — held their second of three meetings at the Capitol on Tuesday. The first meeting in May was described as "lottery 101," on the history of, laws and facts about lotteries. The final meeting is expected sometime in October, and the group hopes to have a final report to the House in November.

The intent of the report, according to Rep. Richard Bennett, R-Long Beach, chairman of the study committee, is not to make a recommendation on whether Mississippi should adopt a lottery, but just to provide information to legislators.

Tuesday's meeting focused on lotteries from the neighboring states of Arkansas and Louisiana; as well as Texas, which operates the largest lottery; Wyoming, the state with the newest lottery; and Nebraska, an example of a well-run lottery, according to state officials.

The five states studied by the special lottery committee all use a portion of their lottery earnings to fund education.

But, according to Bennett, "A lot of them feel it is just a shell game. If (state earnings from a lottery) goes to education, that just means less money from the general fund" going to education. But Bennett added, "A lot of people feel it makes for a better sale if some of it goes to education."

Mississippi is one of six states without a lottery. Many people contend that the state is losing a significant amount of money because of Mississippians traveling to neighboring states — Tennessee, Arkansas and Louisiana — to purchase lottery tickets.

During the past two years, there has been growing momentum for Mississippi to enact a lottery. Gov. Phil Bryant, who once opposed the lottery, has "evolved" on the issue and has voiced support for a lottery — perhaps to help pay for transportation needs.

In the 2016 session, the House approved amendments on bills on two separate occasions to enact a lottery. Those proposals died later in the process.

Committee members learned that lottery officials in both Arkansas and Louisiana said stores near Mississippi are their busiest. And that the scratch games, not the national lotto games, are their most profitable.

"(Arkansas lottery officials) will not be happy for us to have" a lottery, Bennett said.

Some of the states studied by the Mississippi panel required a certain percentage of the lottery revenue to be returned to the state. Others did not.

The states that did not mandate a certain percentage of revenue to be returned to the state maintained in the long-run they could generate more money for the state because they had the ability to spend more on advertising.

Some of the states did studies on the possible socioeconomic consequences of a lottery, such as more bankruptcies, caused by people spending too much on purchasing lottery tickets. The studies said they found no such negative impact and, at least one state, Wyoming, said the lottery did not negatively impact its casino gambling industry.

Multiple states maintain that those playing the lottery games are better educated and more affluent than the population as a whole.

Lottery Post Staff

Comments

haymaker's avatarhaymaker

"Nebraska an example of a well run lottery"

Oh yeah... have a look at LP's state report card...it rates a "D"

music*'s avatarmusic*

I would love to read a study on how many winners go bankrupt.  70% is the most commonly used figure. 

 Then the study could go in detail showing the jackpot winners and how many lost it all. Power Ball and Mega Millions winners.

The California Lottery gives all of its profits to education. Minus winnings, administration.

 "Multiple states maintain that those playing the lottery games are better educated and more affluent than the population as a whole." This makes sense because the poor cannot create these billion dollar jackpots. 

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Bleudog101

Quote: Originally posted by music* on Sep 6, 2017

I would love to read a study on how many winners go bankrupt.  70% is the most commonly used figure. 

 Then the study could go in detail showing the jackpot winners and how many lost it all. Power Ball and Mega Millions winners.

The California Lottery gives all of its profits to education. Minus winnings, administration.

 "Multiple states maintain that those playing the lottery games are better educated and more affluent than the population as a whole." This makes sense because the poor cannot create these billion dollar jackpots. 

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music* I am still astonished that Mississippi even has casinos for that Bible thumping state. 

 

Still have no 'faith' that they'll ever get a lottery. 

With the exception of Las Vegas I don't/won't visit casinos in non-lottery states and have not gone on junket flights to MS, though told it is close to Memphis for lottery.

grwurston's avatargrwurston

If the Mississippi legislators are using the lotteries of Texas, Arkansas, Louisiana, Nebraska, and Wyoming as examples for the way to do lottery business, then the current and future players are screwed.

Other than Texas, none of the other states use ball drawings except on the jackpot games. Mega Millions, Power Ball, Lucky for Life. The daily games, Pick 3, Pick 4 etc, are all computer drawn.

Wyoming doesn't even have daily games. They have Jackpot games only.

To see how your state rates, click on Results in the blue bar. Then scroll down to State Lottery Report Card.

Coin Toss's avatarCoin Toss

Quote: Originally posted by music* on Sep 6, 2017

I would love to read a study on how many winners go bankrupt.  70% is the most commonly used figure. 

 Then the study could go in detail showing the jackpot winners and how many lost it all. Power Ball and Mega Millions winners.

The California Lottery gives all of its profits to education. Minus winnings, administration.

 "Multiple states maintain that those playing the lottery games are better educated and more affluent than the population as a whole." This makes sense because the poor cannot create these billion dollar jackpots. 

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music*,

This is from one study of lottery money going towards education;

It's exactly the opposite of what you thought was going to occur. We're getting new revenue, it's going toward education, and then you end up spending less on education after this period of time," said Pierce.

Pierce says at first, education spending gets a significant bump. But after that first year, the rate of increase on education spending actually tends to slows down. After about 7 or 8 years, less money is spent on education than would have been spent if the state 

(Michigan)

http://www.wndu.com/home/headlines/103966479.html

Other studies have shown that in some states lottery money goes into education but an equal or greater amount is pulled out of education somewhere else within it.

//////////////////////////////////////////////

Re: Miss. looking at a lottery, it sounds like they don't have the players in mind at as haymaker and gwurston implied.

Bleudog101

Was just wondering if they traveled to those states in the study on the taxpayer's tab?  It didn't specify, just mentioned a study.

music*'s avatarmusic*

Quote: Originally posted by Coin Toss on Sep 7, 2017

music*,

This is from one study of lottery money going towards education;

It's exactly the opposite of what you thought was going to occur. We're getting new revenue, it's going toward education, and then you end up spending less on education after this period of time," said Pierce.

Pierce says at first, education spending gets a significant bump. But after that first year, the rate of increase on education spending actually tends to slows down. After about 7 or 8 years, less money is spent on education than would have been spent if the state 

(Michigan)

http://www.wndu.com/home/headlines/103966479.html

Other studies have shown that in some states lottery money goes into education but an equal or greater amount is pulled out of education somewhere else within it.

//////////////////////////////////////////////

Re: Miss. looking at a lottery, it sounds like they don't have the players in mind at as haymaker and gwurston implied.

I Agree! Coin Toss.  Thank You for this study by Professor Pierce. A lottery expert.

 California may be an exception to the rule. The California Lottery posts how much goes to schools each year. How much each school gets.  By law, the lottery only has one beneficiary and that is Education. 

 Dance

Coin Toss's avatarCoin Toss

music*,

Consider;

For example, in Illinois, where the state spends $6.5 billion a year on education, only $619 million, or one-tenth, comes from the lottery. In California, with an $84 billion education budget, the lottery funds only about $1.2 billion, or one-seventieth. In Florida, lottery proceeds cover one-twentieth of state education spending. In New Jersey, it's one-thirtieth; in Texas, one-fiftieth.

"We thought that it would be a windfall" says Michael Johnson, executive director of the Illinois Association of School Boards. He says the idea that lottery money adds to education funding is a myth. 
"The general public -- they were fooled by this," he says. "The belief that that's additional money, above and beyond what we would normally get, that's the part that's not true."

"Well, it's certainly one of the worst votes I ever made," says former Illinois State Senator Dawn Netsch.

Netsch, whose vote helped pass the Illinois lottery in the 1970s, says lottery money simply replaces tax dollars legislators might spend on education, but instead spend on other projects.

"The lottery becomes part of the big pot of money that funds the basic functions of state government," Netsch said.

In Florida, where lottery proceeds are a billion dollars a year, spending per pupil…has dropped nine spots from 37th to 46th in the nation since voters approved a lottery 20 years ago.

n fact, our investigation of government spending in the 24 states that dedicate lottery funds for education yields a stunningly bad report card. The percentage of state spending on education is down or flat in 21 of those states from coast to coast.

Down, for example, in the following states: Washington (-6 percent), New York (-5 percent), Missouri (-4 percent). It's down 3 percent in FloridaIllinoisOhio, and Michigan and Oregon. Texas is down by one percent.

It's up in only three states -- New Hampshire (+4 percent), Georgia (+ 4 percent) and Tennessee (+2 percent).

More;

https://www.cbsnews.com/news/is-the-lottery-shortchanging-schools/

music*'s avatarmusic*

Coin Toss, You are showing all of us here at LP what a Gold Member, Top 100 Poster, a member since Jan. 17, 2006 with 10,524 posts can do. 

 You are dedicated to bringing the truth to the discussion. We should all be proud to know you and your work.

 Thank You !!!

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Coin Toss's avatarCoin Toss

music*,

Facts mean so much more than urban legends some lotteries promote.

music*'s avatarmusic*

Quote: Originally posted by Coin Toss on Sep 11, 2017

music*,

Facts mean so much more than urban legends some lotteries promote.

 As Sargent Joe Friday of Dragnet would say, "Just the facts, Mam".

Cool

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