OK Lottery Commission to introduce new game, try other tactics to

Journal Record, The (Oklahoma City), Aug 16, 2006 by Janice Francis-Smith

The Oklahoma Lottery Commission is looking for ways to rejuvenate ticket sales after the summer slump, though rising gas prices could make it hard for the commission to meet its ambitious sales goal for the year, said Executive Director Jim Scroggins at Tuesday's commission meeting.

"Some think $3 gas is hurting us," said Scroggins, adding that it takes about $60 to fill the tank of his wife's truck. "After spending $60, I'm not inclined to go in and spend more."

For lotteries in other states, sales traditionally go down during the summer months, only to pick up again as the vacation season ends in the fall. Sales in Oklahoma have fallen, but each month Oklahoma has remained in the top four to six Powerball states in overall sales - despite having significantly less population than several other Powerball states, said Scroggins.

Though 367 retailers have made the business decision to stop selling lottery tickets, more than 2,200 retail outlets are still selling tickets, an all-time high for the Oklahoma Lottery Commission, said Scroggins. As the annual renewal date nears, typically retailers will reassess their position and determine if selling lottery tickets has turned out to be a good fit for their business or not, he said. Retailers made $12.9 million in commission for the fiscal year that ended in June.

The Oklahoma Education Lottery met its revenue goal for its first fiscal year, raking in nearly $205 million in total sales and transferring more than $65.2 million to the state to benefit education. After the commission's yearly audit is completed, it expects to transfer another $454,800 to the state.

Plus, $44,600 in unclaimed prize money will go toward gambling addiction programs. Nearly $28,000 in child support was withheld from winnings, along with more than $259,000 in state taxes and $1.6 million in federal taxes.

The commission expects to double its sales for the next fiscal year, setting a goal of $413 million in sales with a net profit of $123 million.

To help get over the summer slump, the commission plans to introduce a new game Sept. 1, and it is increasingly providing retailers with machines allowing players to obtain their tickets on their own, without standing in line.

The commission has also begun a new "Trucks and Bucks" promotion, wherein a drawing will be held at the Oklahoma State Fair in September for a 2006 Oklahoma Edition Ford F-150 XLT Supercrew truck. The commission also discussed a plan to work with the state CareerTech system to provide training for minority-owned retailers that are interested in selling lottery tickets.

A rule revision approved by the commission Tuesday will close a loophole regarding the way retailers are invoiced for tickets, which has thus far cost the lottery "more than I want to admit," said Scroggins. Currently, retailers are invoiced for ticket packs when 80 percent of the winning tickets in the pack have been validated, or 45 days after the pack was activated, whichever comes first. However, some retailers have avoided reaching the 80-percent threshold by simply opening and selling tickets from a new ticket pack. The rule revision would allow an invoice to be issued on the first ticket pack immediately upon activation of a second ticket pack, unless the retailer has two or more selling locations.

Other rule revisions approved Tuesday would require the commission to issue a report within 45 days after the termination of a certain game and would pay retailers a $10 handling fee for preparing prize claims for more than $5,000 submitted to the commission for payment.

The commission also updated the language of its rule prohibiting pawnbrokers and payday lenders from selling lottery tickets to comply with the wording of legislation passed this year.