Kansas Lottery Deputy Executive Director Sherriene Jones-Sontag said the lottery plans to sponsor a bill allowing the state to operate self-service electronic lottery ticket dispensers. She said the machines would generate about million in annual sales, of which the state would receive an additional – million for the general fund.
In the past, lawmakers have not been receptive to the self-service lottery ticket dispensers. However, with the election of more moderate Republican and Democratic lawmakers, plus pressure to eradicate the state’s $350 million budget gap, the dispensers stand a chance of approval, Jones-Sontag said.
In a hearing before the House Federal and State Affairs Committee, Jones-Sontag said, “This is the third year in a row the lottery has set a new sales record,” reaching a record $273 million during the previous fiscal year ending June 2016. In that time period, the state general fund received $78 million from the state lottery and $150 million in prize money was distributed. Retailer commissions totaled $16 million and the state also collected $1.7 million in unpaid state income taxes by withholding prize awards.
Jones-Sontag said at the mid-point of the current fiscal year, lottery sales totaled $128 million across all games, about 5 percent more than this time one year ago. However, she said, it’s not clear the trend will continue through July.
Jones-Sontag also told committee members the state earned $80 million in the last fiscal year from gaming activity at the three state-owned casinos. A fourth casino, Kansas Crossing, is under construction in southeast Kansas.
At the hearing, state Rep. John Whitmer said he opposed the statewide ban on indoor smoking. However, he asked if the exemption granted for state-owned casinos in Dodge City, Mulvane and Kansas City, Kansas could be changed. Kansas Lottery Gaming Facilities Director Keith Kocher responded, “It would reduce the revenue. In other states, they’ve seen a pretty severe diminution of revenues.”
State Rep. Vic Miller said the committee wanted more information about how $7.3 million transferred to the state from the casinos has been used for the Problem Gambling and Addictions Grant Fund. “Where does that go? Who decides how it is spent?” Miller asked.
