The Wyoming Lottery for Education Act, which we recently submitted to the legislature, is an important piece of legislation that once passed will benefit Wyomingites greatly, especially during these economically challenging times. This bill creates a responsible state-wide lottery that supplements state funds for critical education services, diversifies our tax base and supports a wide range of Wyoming businesses without having to raise taxes or make any financial investments by the State.
It is important for Wyomingites to understand that the lottery system that we propose is based on models that have proven effective and beneficial throughout the country. To a large degree, it is modelled on the enormously successful Georgia Lottery, which in its 15 years of operation has helped more than one million residents attend college on scholarship.
Conservatively, the proposed Wyoming Lottery for Education Act is projected to generate more than $11 million per year for the State. That money would be directed to enhance the Hathaway Scholarship Permanent Trust, which is currently under-funded. Additionally, the bill allocates up to $200,000 per year from unclaimed lottery proceeds to fund problem gambling programs. All of this, without any need for state or tax money.
Wyoming is only one of six states that do not currently have a lottery, depriving our citizens of much needed revenue as well as of an activity that most Wyomingites want and indeed participate in. In fact, Colorado’s highest lottery retailer is approximately 15 miles South of Cheyenne, just across the border, and the majority of its patrons are Wyomingites.
In order to ensure that the lottery system is self-sustaining and effectively managed, our proposed bill, again modeled on the successful Georgia example, creates the semi-autonomous Wyoming Lottery Corporation. The Corporation is responsible for all aspects of the lottery, including the establishment of lottery games and participation in multi-state lotteries, and is directly accountable to the Legislature and the public through regular audits and reports.
The Corporation will be governed by an independent Board of Directors made up of respected and prominent members of the Wyoming community, well vetted to avoid conflicts of interest. The Chairman of the Board of Directors is authorized to appoint a lottery retailer advisory board representing the broadest possible interests to develop a state-wide network of lottery retailers, including small business owners, to sell tickets and shares. We are confident that this will help a great many small business operators state-wide who may be hurting because of the current economic crisis.
The bill also allows the Corporation to establish video lottery terminals (VLT), which allow individuals to play some of the same lottery games electronically. VLTs are a critical component of this lottery system. Not only will they bring in additional revenue for Wyoming, but the application fees for their operation — $1,000,000 per — will provide the necessary start up funds for the entire project without having the State invest a single dollar.
We recognize that many of our fellow citizens have concerns about VLTs and the misconception that their use may lead to rampant gambling across our state. To that end, we want to assure Wyomingites that these machines are simply an extension of the lottery and that, in order to control their spread and accessibility, VLTs will only be permitted at licensed horse race tracks with pari-mutuel races. Further, where VLTs are installed at existing racetracks, the Act requires that a percentage of the net revenue is used to improve the Wyoming horse industry, which directly employs 3,100 Wyomingites and affects at least an additional 1,800.
The revenues derived will enable a longer race season, drive a resurgence of the state’s horse breeding industry, increase the needs for goods and services and increase tourism.
Every state that has implemented VLT-funded purses for their race programs, such as Delaware, New Mexico, Iowa, Pennsylvania and New York have seen substantial positive growth and added jobs.
We have given this project and this bill a great deal of thought and are confident that the system that we propose will bring the most benefit to a wide range of businesses and individuals throughout our great State. Like other states, we have to understand that we are living in a down economy – and although many of us have not been hurt that badly, others are suffering. This bill will not affect our state treasury and will bring necessary revenue into small mom and pop convenience stores around the state, bringing in patrons who otherwise might not shop in those locations.
The bill is not something new that has never been done before – it has been done successfully around the country. Monies raised in most states go toward the operation of the lottery. In Wyoming, we have taken a mix of those successful approaches with the private Corporation model that has worked in Georgia, creating a pre-funded, no cost to the state lottery that can be and will be successful for all of Wyoming.
We are working with our colleagues in the legislature to ensure that this Bill is passed in a timely manner and look forward to the establishment of a thriving and successful Wyoming lottery system.
