Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, July 9, 1994 TAG: 9407280031
SECTION: EDITORIAL PAGE: A7 EDITION: METRO
SOURCE: RICHARD G. WILKINSON
DATELINE: LENGTH: Medium
I thought it interesting that Minnix had to use a fictional anecdote to make his point. On what information did he base the story of ``Ralph''? Certainly, there may be some Virginians who spend more than they should on the lottery. However, the Virginia Lottery Department isn't aware of any evidence that the number of people with gambling problems has increased in Virginia since the lottery began.
There are several inaccuracies in Minnix's commentary. In the story, Ralph hears a commercial that asks: ``How in the world can you lose?'' That's not a message that would be heard in a Virginia Lottery commercial. Perhaps Minnix isn't aware of Virginia's advertising restrictions, which do not permit advertising for the ``primary purpose of inducing persons to participate'' in the lottery. While the law doesn't say what inducement is, it does say what the state can advertise. The list of permissible topics includes types of games, ticket prices, number and size of prizes, odds of winning, manner of selecting winners and distribution of lottery revenues.
The Lottery Department has an internal policy that outlines several things we don't permit in our advertising. Among them are denigration of the work ethic, promises of great wealth if you play the lottery and portrayal of lifestyle changes. We're also careful to balance our advertisements with both winners and losers. Virginia's approach to advertising caught the attention of two Duke University professors, who, in their book ``Selling Hope,'' dubbed the Virginia lottery the ``genteel'' lottery. It's a distinction of which we are proud.
Minnix also contends that the lottery takes money out of the economy. In fact, every dollar spent on the lottery eventually is used to purchase other goods and services. Most dollars spent on the lottery don't leave the community. More than half of each dollar goes back as prizes to players, who often use prize money to purchase services and goods, including new cars, refrigerators, decks, carpets and other items that Minnix mentions as being foregone. Retailers meet payroll, and make store improvements with their commissions. Goods and services it takes to operate the lottery take another 8 percent. In Roanoke, for example, 12 people are employed full-time at the regional sales office.
Minnix struggles to make a leap from the voter-approved Virginia Lottery to organized crime and ``casino losses.'' However, the Virginia State Police report that there's been no increase in crime associated with the lottery since it began in 1988.
Minnix said that he was told ``after paying for prizes and the lottery administration, there is not much left over.'' In fact, the Virginia lottery has turned over nearly $1.5 billion to the state's general fund since 1988. For every dollar spent on a lottery ticket, 50 to 55 percent goes to the prize fund; up to 10 percent is used to administer the lottery; 5 percent goes to the retailer selling the ticket; and the final 32 to 35 percent goes to the general fund. The Virginia lottery is currently the third largest source of revenue for the state's general fund, after the individual income tax and sales tax.
Local governments, including Roanoke County where Minnix is an elected official, benefit from the contribution that the Virginia lottery makes to the commonwealth's general-fund budget. In the current fiscal year, for example, the commonwealth provided approximately $3 billion in general funds to its localities. In fiscal year '92, Roanoke County received $32.7 million in general funds.
The lottery was created when the majority of Virginians approved it in a referendum. It is charged with generating revenue for the public good ``consonant with the probity of the Commonwealth.'' The Virginia Lottery Department welcomes suggestions from all citizens. However, we believe those expressing their opinions on the Commentary page should be asked to support their allegations with hard evidence.
Richard G. Wilkinson is interim director of the Virginia Lottery Department in Richmond.
by CNB