OKLAHOMANS ARE GOOD IN MATH!
In April 2003, the Oklahoma legislature passed House Bill 1278 and Senate Joint Resolution 22, which created the Oklahoma Education Lottery Act and the Oklahoma Education Lottery Trust Fund. It also placed on the ballot State Questions 705 and 706 in the November 2004 election. Governor Henry had made the establishment of the lottery a cornerstone in his campaign for Governor in 2002, so it came as no surprise when state voters were told the lottery would pump $300 million annually into education. Governor Henry and then State Budget Director- now State Treasurer Scott Meacham pounded the table and convinced Oklahomans to approve the “tax on the stupid.” Voters did- but voting for it and playing it are two different things.

Lotteries have the worst odds against winning than any other type of gambling. Sure, lotteries have big payout for small bets, but for example the Oklahoma Lottery only pays out forty-five cents for every dollar they collect. Casinos, slot machines, office pools, racetracks and dishonest bookies have higher payouts than the Oklahoma Lottery. Historically, lotteries are run by government to raise money for public service- most of the time for schools or roads. Lotteries are marketed to poor people who buy into the dream that they might just “hit the big one” and pull out of poverty. Those who play the lottery are those who can least afford to play the lottery. Professional gamblers say the lottery is gambling for those who aren’t good in math.

The Oklahoma lottery has been a dismal failure. Instead of state education getting $300 million like Blackjack Henry and Slim Meacham projected, this year the lottery contributed only $65 million. The shortfall has the Lottery Commission facing potential lay-offs. Last week, the State Lottery Director Jim Scroggins, said that he was going to ask the legislature to reduce the percentage that education gets off the lottery, so the Commission can avoid layoffs. Scroggins’ proposal created a firestorm at the State House- Oklahoma City, not McAlester.
State Representative Chris Benge, (R-Tulsa) said “The voters of Oklahoma were told lottery profits would go to our schools and any effort to divert that money is a violation of the voter’s trust.” House Majority Whip Rob Johnson, (R-Kingfisher) said, “Director Scroggins is one of the highest-paid lottery officials in the region, yet the Oklahoma Lottery has been an abject failure on his watch.” Scroggin’s salary is $175,000 a year- a far cry from the average Oklahoman’s salary. He has also been paid $50,000 in bonuses since the lottery started less than two years ago.

State Representative Randy Terrill (R-Moore) who chairs the Revenue and Taxation Subcommittee said, “From the first day on the job, Scroggins has known that our schools would receive 35% of all lottery profits.” “If he has a problem with that, he should resign.” “We are not going to cut school funding to prop up the governor’s failed lottery.”

Scroggins should play the hand he has been dealt. Asking for a reshuffle is ridiculous especially coming from a 25-year veteran of the lottery game. What legislators should consider is reducing the budget of the lottery commission by the percentage that Henry missed in his projection. For example- Henry estimated the lottery would generate $300M- it’s producing only $65M- just 21.6% of what Henry said it would produce. It would be reasonable to assume the Lottery Commission operating budget was based on Henry’s ambitious estimate of $300M. If that is the case then Scroggins salary should be reduced to 21.6% of what he currently earns ($175K). That would place his new salary in the ballpark of the state legislators salary- $37,800 annually. If the lottery is a business, then that makes sense. You produce- you earn. The schools are only getting 21.6% of what they thought they were going to get from the lottery. Seems only fair the lottery commission should be in the same boat.

On the Oklahoma Lottery website, Scroggins writes that he is impressed by the commitment he sees from the Governor, the Board of Trustees, and the people of Oklahoma to the lottery. Also on the site, Governor Brad Henry states that Mr. Scroggins brings a wealth of experience, knowledge and vision to this important position, and he looks forward to working with Mr. Scroggins to implement an education lottery that will make all Oklahomans proud.

The Oklahoma lottery has made us proud- it’s proven that Oklahomans are better at math than Henry and Meacham thought we were and that accounts for the lack of participation the lottery scam has gotten.