Starting date for N.D. lottery is set for March 25

Dec 10, 2003, 7:14 am (Post a comment)

North Dakota Lottery

North Dakota will begin selling Powerball tickets March 25, the director of the new state lottery said.

The date, a Thursday, was suggested by Scientific Games International, the company that has been hired to supply computer terminals and other equipment for retailers to use in selling tickets.

North Dakota's lottery will begin business by selling tickets to Powerball, a game that is played in 24 states, including Montana, South Dakota and Minnesota.

Later next year, the lottery will begin offering tickets to two smaller multistate games, called Hot Lotto and Wild Card 2.

Attorney General Wayne Stenehjem has said he expected lottery sales to begin within the first three months of 2004. The March 25 launch date is the first definite starting time that has been disclosed.

"While the sooner the better is good for me, that's a date that will work, and we'll be ready to go," Stenehjem said. "It's just a little bit over 100 days from now, and things are moving along quite smoothly."

Chuck Keller, the lottery's director, said Tuesday that a group of Scientific Games officials are visiting North Dakota this week to discuss the final terms of the company's state contract.

More than 500 businesses have applied to sell tickets, and the lottery office and Scientific Games will be ranking the locations to decide which ones will be granted licenses, Keller said. Some have already been disqualified because of poor finances or problems with a criminal background check.

The state's contract is for seven years, and includes three one-year renewal options. Scientific Games has agreed to take a sales commission of 8.98 percent, meaning it will get almost 9 cents for every $1 lottery ticket sold. The company estimates the contract is worth $12.8 million over seven years.

The 8.98 percent commission rate assumes the North Dakota lottery will use up to 325 terminals. Keller said only about 300 machines will be deployed to start.

Scientific Games' initial contract proposal estimated North Dakota's lottery demand could justify 362 to 481 terminals. Scientific Games would supply more terminals for additional compensation, Keller said.

Some aspects of the lottery contract are open for discussion, including the total number of terminals needed and the training required for store workers who will be selling tickets.

Scientific Games has suggested 40 minutes of training for each lottery ticket retailer, and the North Dakota Lottery "was expecting more extensive retailer training on marketing and sales promotion," a state summary of Scientific Games' contract proposal says.

Stenehjem said he expected a considerable buildup of public interest as the March 25 date approaches.

"It's an important news dvent, and it certainly is in North Dakota, because of the tremendous interest it's had, and the fact that this was voted on by the people," Stenehjem said.

North Dakota voters approved a state constitutional amendment in November 2002 to allow the state to join a multistate lottery. Sixty-three percent of the voters endorsed the amendment.

AP

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