Lottery Anticipates Less Revenue, Fewer Scholarships

The Arkansas Lottery Commission approved its next fiscal year budget on Wednesday, anticipating a reduction in revenues and scholarship money.

The lottery’s new budgets expects $459 million in gross revenue compared to the current year budget of $464 million. The reduction in gross revenue expectations has officials planning for only $100 million in scholarship money, a $5 million decline from present levels.

In turn, the revenue predictions led to a legislative oversight committee to recommend 10% reductions in scholarships. Next year, officials expect $5,000 scholarships for four-year schools to be reduced to $4,500. Two-year college lottery scholarships will fall from $2,500 to $2,250.

What do lottery administrators see influencing these lower projections?

Rising gas prices, according to Lottery Director Ernie Passailaigue. Lewis Delavan with our content partner, the Arkansas News Bureau, reports:

"It definitely has an effect,” Passailaigue said. “The question is, how much?”

Expanding locations may help boost sales. The lottery unveiled that it wants to expand its retailer sales base by another 200-300 in the next year.

Also, the results of a survey conducted as part of a contract with the agency provided insight on Arkansan attitudes regarding the lottery. A few takeaways:

• 42% of Arkansans have purchased a lottery ticket since its start-up
• 70% of those playing the lottery have education beyond high school
• 74% have an income above $25,000 per year; 26% below $25,000
• 74% of lottery players are Caucasian; 22% are African-American

You can read more from Arkansas News here and there is more recap of the meeting from the Arkansas Times here.