The Florida Lottery, the second largest in sales and net revenue the U.S. behind New York, recently announced it has contributed a total of billion to the state’s education trust fund since it began in 1988. Lottery Secretary Tom Delacenserie said, “The Florida Lottery will mark its 28th year of operation on January 12, and to have surpassed billion in education funding during that time is a tremendous achievement.”
About 6 percent of the state’s total education budget comes from lottery sales, which are averaging more than $100 million a month to benefit education, including funding the Bright Futures Scholarship Program, according to a statement.
Despite those figures, state Rep. Frank Artiles and state Senator Tom Lee recently filed a bill that would lower the number of scratch-off lottery games from 75 to 20 and cap ticket prices, which range from $1 to $25, at $5. Artiles said, “When we analyzed it, we found most money is coming from Hispanic and African American communities in the inner cities. And quite frankly, I believe they’re targeting those. Yes, there will be a fiscal cost, but there’s also a cost in my opinion when a $10-an-hour employee is buying a $20 scratch-off ticket.”
The Lottery Department has not taken a position on the bill but it was analyzed by the Revenue Estimating Conference in terms of high, middle and low predictions of potential revenue losses. It found, if games are cut to 20 and prices capped at $5, first-year recurring fiscal impacts ranged from $197.1 million to $285.8 million. Naturally dropping the retail price would result in lower top prizes, which would lead to fewer players.
mean lowering the top jackpots – which would mean fewer players.
Casino tax revenue possibly could make up for a portion of the losses from scratch-off ticket sales, which make up the majority of lottery revenue.
Florida voters approved a constitutional amendment to create the lottery in 1986 and since then it has brought it billions of dollar for public schools.
