Arkansas May Disband Lottery Commission

Sales have been declining for the Arkansas state lottery and a consultant recently said it needs to improve its image. As a result, a legislative committee recently approved moving lottery management from a nine-member commission to a governor-appointed director at the Department of Finance and Administration.

The Arkansas House Rules Committee recently voted unanimously to approve a bill transferring management of the state lottery from an independent nine-member commission to the state Department of Finance and Administration under a director appointed by Governor Asa Hutchinson. The Senate passed the bill 43-0 earlier this month.

Voters approved the lottery in 2008 to raise funds for college scholarships. Ticket sales began in 2009. However, sales have been declining and last December a consultant said the lottery needs to “reboot” its image. Ernie Passailaigue, the lottery’s original director, resigned in 2011 after a legislative audit raised questions about the games’ management and his $324,000 salary.

Supporters of the measure said changing lottery management could help halt the decline in college scholarship revenue and save money by eliminating lottery positions that already are being handled by the state finance department.

House Speaker Jeremy Gillam said he anticipates the full chamber will approve the bill. “There haven’t really been any other options presented as alternatives, so I think that’s why you saw the senate embrace it. You don’t see anybody opposing the idea. I think that sends a pretty clear signal to most of the membership that it has some merit to it.”