Wyoming Takes Step Towards Instituting Lottery

Feb 19, 2004, 7:35 am (1 comment)

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In a narrow vote, Wyoming lawmakers chose to support a bill that would allow the state to get into the lottery game.

The House Revenue Committee voted 5-4 to pass House Bill 20 to the full House for debate.

"This is not about gambling in the state of Wyoming," said Rep. Dave Edwards, R-Douglas. "We already have gambling. It's here, it's on the Internet."

Edwards passed out a piece of paper containing six different ads promoting raffles from just one weekend edition of a Wyoming newspaper. Taking part in raffles is another form of gambling, he said.

But his main point was that the state is losing money by forcing residents to cross state lines to buy lottery tickets. Edwards said about 1.9 million trucks and 4 million cars drive through the state on Interstate 80 each year, and about a half a million trucks also travel through the state on Interstate 25 in a year.

"These people are buying tickets somewhere else, and they ought to buy them here," Edwards said.

Former lawmaker and Cheyenne resident Pat Hacker was the only audience member present who testified against the bill late Wednesday night.

Hacker told committee members that allowing the state to operate a lottery would be promoting a bad consumer choice.

"My question is, why do you want to do this?" he asked. "Do you need the revenue?"

Hacker also reminded lawmakers that there's no guarantee that the lottery will make a lot of money for the state and suggested the $2 million investment in the creation of a state lottery organization was a gamble in itself.

HB 20 would authorize the Wyoming pari-mutuel commission to operate a multistate lottery organization and contract with other states to operate a lottery. The commission would set rules for the lottery, employ a director and make an annual report to the Joint Revenue Interim Committee regarding its operation.

Revenues from the sales of lottery tickets would go into a lottery account, except for 1 percent of gross revenues that would be set aside. The first $2 million set aside annually would go to assisting senior citizen services, a Game and Fish trust account and the State Parks and Historic Sites capital construction account, with remaining revenues going to the general fund.

Originally, the bill moved a portion of the revenue to assist senior citizen centers but lawmakers voted to amend the language and allow the money to serve a broader set of purposes.

The bill contains a $2 million appropriation from the general fund, which is expected to be repaid from profits no later than one year after the first prize is paid.

The bill's latest fiscal note also estimates that it will cost the pari-mutuel commission $4.5 million to administer the lottery in fiscal years 2006 and 2007.

Edwards estimated that the net revenue would be around $6 million a year.

Rep. Rodney "Pete" Anderson, R-Pine Bluffs, proposed two unsuccessful amendments during the meeting to lower the general fund appropriation to $100,000 and make lottery tickets subject to a sales tax.

Anderson also spoke out against the bill, saying that it was unconstitutional because it does not protect and promote the health and morale of the people of Wyoming.

"Understandably, we can't legislate morality," Anderson said. "But certainly we don't need to legislate immorality."

This is far from the first time Wyoming lawmakers have considered a bill to create a state lottery. Last year, lawmakers brought two similar bills, one of which died in a Senate committee. The House bill died on the floor.

Wyoming Tribune-Eagle

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CASH Only

I suppose it would be run like North Dakota's soon-to-begin lottery.

Assuming WY joins MUSL, it should also offer "Hot Lotto".

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