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OREGON STATE LOTTERY Terminology History - PowerPoint PPT Presentation


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OREGON STATE LOTTERY Terminology History Net Proceeds Traditional Video Transfers Issues LOTTERY TERMINOLOGY Revenue Game Other (interest and unclaimed prizes) Prizes Net Receipts = Game Revenue Less Prizes Expense Game Operating Contingency Reserves

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Presentation Transcript
Oregon state lottery l.jpg
OREGON STATE LOTTERY

  • Terminology

  • History

  • Net Proceeds

    • Traditional

    • Video

  • Transfers

  • Issues


Lottery terminology l.jpg
LOTTERY TERMINOLOGY

  • Revenue

    • Game

    • Other (interest and unclaimed prizes)

  • Prizes

  • Net Receipts = Game Revenue Less Prizes

  • Expense

    • Game

    • Operating

    • Contingency Reserves

  • Net Proceeds = Net Receipts Less Expense


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LOTTERY HISTORY

  • 1984 Created by Initiative Petition

    • Traditional Games

    • Net Proceeds Dedicated to Economic Development

  • 1989 Legislative Action

    • Created Sports Action Lottery

    • Authorized Video Lottery (suspended by Governor)

  • 1991 Legislative Action

    • Implemented Video Lottery, prohibited private lotteries

    • Dedicated 2.5% of Net Receipts to counties

  • 1995 Referred Measure # 21

    • Added “financing public education” as allowable use

    • Gave lottery bonds first claim on revenue

    • Dedicated 15% of net proceeds to Education Endowment Fund

  • 1998 Initiative Petition (Ballot Measure # 66)

    • Dedicated 15% of net proceeds to Parks, Beaches, and Watershed Protection


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Lottery History (cont.)

  • 1999 Legislature Action

    • Dedicated not less than 1% of Video net proceeds to Problem Gambling

  • 2002 (3rd SS) Legislative Referral

    • Converts EDF to Education Stabilization Fund (ESF)

    • Lottery Dedication Increased, Conditionally

      • If Fund Balance < 5% of GF, 18% to ESF

      • Else 15% to School Capital Matching Subaccount

    • Allows Appropriation of Principal, Conditional

      • 3/5 Vote Plus Specified Economic Conditions or Emergency


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Traditional Lottery Games2001-02 Net Receipts

$113.2 million









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2001-03 LOTTERY

$680.3 Million


Issues l.jpg
ISSUES

  • Line Games

  • Video Payout Percentage

  • Retailer Compensation

  • Lottery Expense

  • Advertising


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Line Games

  • Lottery Estimate as of February 2002

    • 2003-05 $80 million

    • 2005-07 $80 to $130 million




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Video Compensation Rates

  • Annual Net ReceiptsRate

  • Up to 200,000 35%

  • 200,000 to 400,000 30%

  • 400,000 to 600,000 25%

  • Over 600,000 20%

  • Average 32%




Sales f advertising l.jpg
Sales = f(Advertising)

  • Sales = -276 + 106 Ln(Adv.) +

  • 18 PPI + 5 DV

  • R-square = 0.994

  • F of Ln(Adv) = 22.2



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Implications

  • A $1 Increase in Advertising

    • Adds $14.25 to Sales

    • Adds $3.13 to Transfers


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