In North Carolina, the contracts for operating both lottery drawing games and instant scratch-off games currently are out for bid. The contracts, which will expire in March 2016, are worth million a year. At the moment International Game Technology, formerly GTECH Corporation, operates North Carolina’s games. Three or four other major lottery companies could offer bids, with new contracts awarded next April.
In the most recent fiscal year, North Carolina sold nearly $2 billion in lottery tickets, providing more than $500 million for education.
Meanwhile, legislators have asked state lottery officials for recommendations on ways to boost lottery revenue. Among the ideas are installing video lottery terminals and allowing Club Keno, a fast-paced numbers drawing game that would be offered statewide through terminals in restaurants, bars and fraternal clubs.
Another suggestion is more advertising. Current law caps lottery advertising at 1 percent of sales, and it spends about $20 million. Last year House leaders agreed to more ad spending, then reversed course. This year, the Senate has agreed to spend an additional $10 million on TV, radio and other ad, which, it said, would generate about $155 million more in lottery sales return $31.5 million more to education. State Senator Harry Brown noted the most states spend much more on lottery advertising than North Carolina. “We just felt like it was an opportunity for us to realize some additional revenue with very little change, honestly,” he said.
Lottery officials also said current state law is “silent” on whether lottery games can be sold at state-controlled, county-run ABC liquor stores. Adding language in state law to specifically allow sales at liquor stores would “clear up any possible confusion.” Lottery vending machines at liquor stores would generate money for the counties that run the stores and “could potentially be a windfall to the local establishments and the state.”
Lottery spokesman Van Denton also noted internet-based “E-Instant” games would allow registered players “to access a portfolio of interactive electronic games.” The games would be played on computers or on players’ phones. The state Senate added this option to its adopted budget, anticipating about $64 million in sales once the program is up and running.
“We think that the one challenge for lotteries in the U.S. and for the North Carolina Education Lottery will be staying relevant with people and keeping interest in playing lottery. Like with most things today, it’s going digital. Is it time for North Carolina to start moving in this direction? The Senate’s interest in E-Instant tickets is one sign that legislators might be thinking that we need to keep up with the times.”
Lottery opponent state Rep. Paul “Skip” Stam said more ads and E-Instant tickets only “make a bad situation worse. They’re turning the lottery into a video poker machine. It’s a deceitful way to raise taxes.”
Denton responded, “We don’t want people playing with the rent, food, or gas money. The day that you play the lottery, and it doesn’t feel like fun, that’s the first sign you’re playing too much and it’s time to take a break.”
The current lottery money breakdown includes 62.3 percent to prizes; 26.2 percent to education programs; 7 percent to retailer commissions and incentives; and 4.4 percent to administrative and advertising expenses.
