The Mississippi House committee studying the costs and benefits of a state lottery recently held its final meeting, during which it heard comments from casino industry officials. Governor Phil Bryant said during his State of the State address in January that Mississippi should consider creating a lottery as a way to generate revenue without raising taxes. House Speaker Philip Gunn appointed the study group in May. Gunn opposes a lottery but said he wanted the commission to research how lotteries are run in other states. Mississippi is one six states—including Nevada, Hawaii, Utah, Alaska and Alabama–that does not have its own lottery or sell Powerball tickets, although in 1992 voters approved a constitutional amendment to allow a lottery.
Larry Gregory, director of the Mississippi Gaming and Hospitality Association, which represents 28 Gulf Coast and Mississippi River casinos, told the lottery study committee the group would not oppose a paper system and scratch cards. However, he said they would strongly oppose any type of video lottery terminals in bars or convenience stores, because that would cause a decrease in income. He pointed out in Illinois, casinos’ annual gross revenue decreased nearly 14 percent since 2012 when video lottery terminals were introduced. He said today more than 27,000 terminals operate in nearly 6,200 locations in Illinois.
“It would not be an overstatement to say that from gaming’s standpoint, the passage of legislation legalizing VLTs would be equivalent to the industry suffering a natural disaster,” Gregory said.
Economist Darrin Webb said a lottery would add $101.4-$116 million to the general fund. He added Mississippians spend $5-$10 million annually on tickets they buy in Arkansas and $30 million on tickets purchased in Louisiana. Webb also noted economic research indicates retail sales tax collections would decreased between $18.8-$22.2 million due to a drop in retail sales, eventually leading to a reduction in employment, income and gross domestic product.
Webb also told the committee that lotteries end up being a tax on poor people, since they play it more frequently but are the segment of the population who can least afford it. “Mississippi is already plagued by people making poor choices, including decisions about their health, family planning and educational training. A Mississippi lottery means the state will be investing in and encouraging individuals who have limited incomes to make poor financial decisions.”
William Perkins, spokesman for the Mississippi Baptist Convention Board, added, “Just like other vices, like drinking and other forms of gambling, you can get hooked in such a way that your family suffers and your children suffer. Mississippi Baptists just don’t want to see that happen under any conditions.”
Committee Chairman Richard Bennett said he expects the final lottery report to be presented to legislators by mid-December.
