Texas Officials Alarmed By Drop In Revenues From State Lottery

Austin, TX (AHN) - Experts blamed the $100 million dip in Texas' revenues to boring lottery games.

According to John Kindt, University of Illinois professor and gambling critic, gambling income is not tied up with the economic condition of a place. It is a recession-proof business based on his study of lottery trends when recession hit the U.S. in the early 1990s.

Kindt explained to the Houston Chronicle, "Instead of buckling down and facing the economic realities, people take chances."

Among the lottery games that Rep. Ismael Flores (D-Palmview), chair of the state assembly committee that supervises the Texas Lottery Commission, identified as boring is the scratch-off. It has resulted to a 2.7 percent decrease in total revenue, partly translated into a $74 million decline in the sales of scratch-off games.

But Flores admits their hands are tied because Texas regulations forbid the commission from introducing new forms of gambling including keno, video lottery terminals and instant online games, which provide instant results and are more appealing to gamblers.

According to commission officials, if they would be permitted to place video lottery terminals at racetracks, it could raise an extra $1.4 billion for the state over five years, while keno, which is similar to bingo, could bring in up to $173 million over five years also.

Christian groups in the state, though, oppose the use of gambling as a means to raise funds for the state's coffers. Rob Kohler, lobbyist of the Christian Life Commission of the Baptist General Convention of Texas, pointed to a 2006 study commissioned by Texas which said residents with lesser income and lower educational attainment tend to spend a higher amount on gambling than those with higher wages and education.

To address the drop in gambling revenues, the commission tapped the services of LatinWorks to unveil a one-year branding and advertising campaign. The theme of the marketing promo will be, "Any day can be your lucky day."

Its sales blitz will include radio and television advertisements, out-of-home, point-of-sale, online and print ads and sponsorships and promotions.