The Senate in New Mexico has voted 25-16 to pass a bill to help move forward a bill to help with slumping lottery sales. The bill would allow for consumers to purchase lottery tickets using debit cards. More money would be pumped into college scholarships with the new legislation as well. Currently, a requirement is in place where 30 percent of gross lottery sales are transferred to scholarship fund. The change would see monthly net revenues deposited into the fund.
New Mexico’s lottery peaked at $148 million in revenue in 2008, which saw $86.6 million in scratcher ticket sales. In 2014, scratcher ticket sales dipped down to $70 million. Senator John Arthur Smith (l.) said, “We’re trying to re-establish debit-card market share by allowing a greater win percentage on scratchers and hopefully bring more money to the bottom-line.”
New Mexico, with 2 million people, are 38th in lottery sales in the country. “If you don’t have a run-up, you’ve got a problem,” Smith said. Although scholarship expenditures have increased, lottery revenue transfers have stayed flat. The transferred averaged $42.2 million from fiscal year 2010-2014.
Senator Gerald Ortiz y Pino, opposes the bill, and said, “This is playing a very risky game with that fund.” Pino claims the state should first attempt to advertise and increase prize money to help the slumping sales. Smith said he understands the downsides but hopes the sales, which he hopes will hit $170 to $180 million after five years will pay dividends. His bill will now move to the House.
