AIKEN - Gamblers often say that the house never loses.
That's certainly true of the South Carolina lottery and the money
it's making for the state.
When
scratch-off tickets and numbers games were first offered in 2002, it
was projected that the state would net $644 million through June
2005.
But now it looks as if the state will beat that bet by as much as
$220 million, South Carolina Lottery Commission Director Ernie
Passailaigue said Thursday.
He's been touring the state for the past year and a half to
update local governments and civic groups about the lottery's
progress, and visited the Aiken County Council on Tuesday.
State-sponsored gambling has been a hot-button issue for South
Carolina. Critics say the lottery preys on those who can't afford to
play and amounts to an unfair tax on the poor. Supporters argue that
people are going to gamble regardless of what the state does and
that lottery revenue is boosting the state's education system.
So far, more than $850 million has been appropriated to public
schools and for college scholarships.
That pot could be even bigger, Mr. Passailaigue told county
council members this week. But that's not how the lottery commission
is playing the game.
Though state law allows the commission to spend up to 1 percent
of its gross receipts on advertising, it will spend just 0.7 percent
during the current fiscal year that ends in June, or about $7.7
million.
"For every dollar spent on advertising, we get back $142 in
return," he said. "We're not interested in maximizing lottery sales,
though. The people of South Carolina want to see this as a net
benefit to society."
The lottery commission's annual study of who is playing games
helps disprove some of what critics have said about state-sponsored
gambling, Mr. Passailaigue said.
Of the 1,500 people polled from across the state, 54 percent said
they'd played the lottery. Sixty-five percent of those who
participated were white; 29 percent were black; and the remaining 6
percent were classified as "other."
Those figures almost mirror the state's population, which is 67
percent white and 30 percent black, according to 2003 U.S. Census
estimates.
The study, which had a margin of error of 2.5 percent, had other
findings that encourage Mr. Passailaigue: Half of those who played
had an annual household income of more than $50,000.
The lottery director says that is the result of the commission's
effort to reach the masses, not one particular section of society.
"We view our stakeholders as 4.1 million people, which includes
people who do not play the lottery and do not like it," he said.
The flip side of the study's findings is that 44 percent of those
who played made between $10,000 and $50,000.
"It is people who don't have disposable income who are playing
these games," said Oran Smith, the president of the Family Policy
Council in South Carolina. "The state government shouldn't be a
bookie for people who want to gamble."
There are also fears that the lottery will be expanded when
profits start to decline, which has historically happened in other
states.
The lottery commission is considering the addition of a $20
scratch-off ticket - the most expensive ticket now costs $10 - and a
six-number Powerball-type game for 2006. While Mr. Passailaigue
argues the more costly tickets attract wealthier players, others
argue that it's too aggressive.
"Gov. (Jim) Hodges sold people on the lottery idea numerous
occasions saying that all this is a $1 scratch-off game," said Ed
McMullen, the president of the conservative South Carolina Policy
Council, which opposes the lottery. "At what point do we say no?
Twenty dollars is clearly bumping the limits."
Reach Josh Gelinas at (803) 648-1395, ext. 113, or josh.gelinas@augustachronicle.com
By
the numbers
$2 billion: Total lottery sales through June 2004
$852 million: Money budgeted for education
65 percent: Players who are white
29 percent: Players who are black
49 percent: Players with annual household income more than
$50,000
44 percent: Players with annual household income between $10,000
and $50,000
Source: study of 1,500 people from across the state that included
a margin of error of 2.5 percent; South Carolina Education Lottery.
Augusta Chronicle 
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