Wednesday •April!
Lottery Commission makes bad bet
AUSTIN (AP) — Lottery officials
told them it would not work. But Texas
legislators cut overall prizes last year as
a way to increase the state’s share of
revenue from the numbers games.
It has not worked.
Lottery sales have been slower
since the prize cuts took effect Sept. 1,
1997. The state now expects to net
more than $328 million less than an
ticipated in the current budget.
Noting the potential shortfall, Sen.
Ken Armbrister, D-Victoria, onThesday
said lawmakers should consider re
turning prizes to where they were —
about 57 cents of every dollar in sales—
or allow the Lottery Commission to de
termine how to best maximize profits.
“It was a bet trying to get us to the
same place,” Armbrister said of the
prize-cut decision. “We didn’t have
that expertise and now it is costing us,
it seems.”
Sen. Gonzalo Barrientos, D-
Austin, agreed. “I think we made sev
eral mistakes,” he said. “One would
have to be oblivious to reality if one
didn’t think the cutting of prizes did
n’t affect (sales).
“The bottom line is that we have to
bring in some revenue to the state and
be fair and generous to the people who
participate in our lottery,” he said.
Barrientos said he likely would sup
port returning prizes to the 57-cents
per $ 1 level if the lottery could prove its
sales would rebound as a result.
Before doing it, state officials ac
knowledged that cutting prizes to
about 53 cents per $1 in sales would
drive some players away.
But they said enough players
would remain loyal and the extra
money from the prize cut would off
set any loss of players.
That has not been the case.
Texans have told the lottery that
they have either stopped playing or re
duced the money they are spending in
part because prizes were cut.
Executive Director Linda Cloud
showed lawmakers the difference the
cut made to just one game, the lottery’s
Valentine’s Day instant game.
In 1997, before prizes were cut, the
game peaked at more than $5 million
in sales. Prizes for the game at the time
amounted to about 60 cents on the $ 1.
This year, with prizes at 50 cents per
$1, the game peaked at less than $3
million in sales. That was lower than
the starting sales of the game in 1997.
While the prize cut was a major
contributor to the drop, Cloud said
other factors included negative pub
licity because of lottery controversies
unrelated to the games, the age of the
lottery, a cut in advertising and a na
tionwide decrease in lottery sales.
She added, though, that returning
the prize payout to its original level
could solve much of the problem.
Cloud said Georgia also cut its
prizes last year, saw sales drop and
raised prizes back up. While sales rose
after prizes were returned to their orig
inal level, they did not return to pre
cut figures, she said.
Driving me crazy
y r ■
r
JAMES FRANCO
Clint Willis, a sophomore construction science major, waits for a parking spot in BlueLotSbj
side Zachry Building Tuesday afternoon.
What's Up
Wednesday
ATM Womens Rugby: Come join!
No experience needed. Practices
are from 5 to 7 p.m. at the pitch on
the corner of Texas Ave. and Uni
versity Dr. Call Nikki at 694-0084
for information.
Catholic Students Association: Hot
Topics” discussion session from 6 to
7 p.m. in St. Mary’s Student Center
Library, followed by Newman Mass
at 7:15 and a Bible study in Rud
der Tower.
Study Abroad Programs Office:
There will be a meeting from 11 to
11:30 a.m. in 154,161 Bizzell Hall
West. The meeting will promote the
Italy Spring ’99 program.
Episcopal Student Center: There
will be a celebration of holy eucharist
followed by free dinner at 6:15 p.m.
at 902 George Bush. Call Father
Mark at 696-0774 for details.
Texas Aggie Brew Club: There will
be more of the same at 7:30 p.m.
at On the Border. Call Joseph for
more details at 696-7375.
Pre-Dental Society: We will have
our annual banquet at El Arroyo at
7 p.m. Dr. Birdwell will be the
speaker for the evening. You can
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by Monday. Call Shannon at 696-
2922 for details.
Thursday
Graduate Fellowship of Intervarsity
Christian Fellowship (IVCF): Bible
study for graduate and non-tradi-
tional students, followed by fellow
ship will be held at 7:30 p.m. See
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Call Mark or Jennifer at 764-1552.
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MSC LT. Jordan Institute
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South American
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Destruction or Development?
Dr. Richard K. Reed
Professor of Sociology and Anthropology
Trinity University
We d n e s day
April 29th, 1998
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Tables are noxv on sale! Don’t miss out!
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