Alabama has no money. A lottery might be its last hope

[barryqwalsh]

Until last year, Wyoming, too, did not have a lottery. But lawmakers were concerned about all the money their residents were spending in next-door Idaho to buy lottery tickets. “This is a way to keep Wyoming money in Wyoming,” Gov. Matt Mead (R )said at the time. Lottery proponents also hope to attract customers from nearby Utah, which continues to abstain.

Alabama might be the next to break down and start a lottery. For years, it has usedloans, savings and one-time windfalls to balance its budget. Now it faces an intractable $200-300 million shortfall — a $700 million shortfall if all the borrowed money is thrown into the calculation.

“We knew this day was going to come. We knew this crisis was going to take place, and it’s here,” Gov. Robert Bentley (R ) said in a speech Monday morning.

Alabama has no money. A lottery might be its last hope. - The Washington Post

 

[barryqwalsh]

Revenue is leaving the state, raising funds for other states.

Talk about letting the perfect be the enemy of the good!

 

[barryqwalsh]

I read this in the Washington Post.

Marijuana Tax Revenue in Colorado in 2014 brought in $76M.

A good idea for Alabama?

 

[barryqwalsh]

An Alabama woman has claimed her prize from the winning Powerball ticket sold in North Escambia, Florida, on April 11.

Alice Dawson, 60, of Frisco City, AL, chose to receive the $80 million annuity jackpot as a one-time, lump-sum payment of $53,440,213.76.

"This is a blessing in our lives and proves that anything is possible with faith in God," said Dawson. "We plan on using our winnings to help our friends, family and our church."


Alabama woman claims 80 million Powerball jackpot Lottery Post

 

[barryqwalsh]

An Alabama woman has claimed her prize from the winning Powerball ticket sold in North Escambia, Florida, on April 11.

Alice Dawson, 60, of Frisco City, AL, chose to receive the $80 million annuity jackpot as a one-time, lump-sum payment of $53,440,213.76.

"This is a blessing in our lives and proves that anything is possible with faith in God," said Dawson. "We plan on using our winnings to help our friends, family and our church."


Alabama woman claims 80 million Powerball jackpot Lottery Post

But the state of Alabama did not benefit from the revenue raised!

Alabamians are happy to support other state lotteries, it is time they were given the
opportunity to raise revenue for Alabama, with a state lottery.

 

[barryqwalsh]

Alice Dawson and all Alabamians can play a lottery without leaving the state.

Massachusetts Megabucks Doubler game is available across the US by subscription, over the phone.Its only $100 for a year - 2 draws a week.

 

[barryqwalsh]

Most people buying powerball tickets at HP Max Fuel Express in Ardmore, Tenn. were actually Alabama residents who drove upwards of 45 minutes to play the lottery.


Alabama does not participate in a lottery of any type, but a winner from the state would still have to declare their winnings as income.

 

[barryqwalsh]

What could Alabama do with the revenue a state lottery would raise?

The UK offers some examples:

Where the money goes

As operator of The National Lottery, Camelot is committed to maximising returns to National Lottery Projects through selling tickets in a socially-responsible way.

Camelot runs the most cost-efficient major lottery in Europe, with around 4% of total revenue spent on operating costs and less than 1% retained as profit after tax – a key factor behind it delivering, on average, over £33 million each week for National Lottery Projects in 2013/14. To date, National Lottery players have raised over £33 billion for these projects, with more than 450,000 individual awards made across the UK – an average of 144 lottery grants for every postcode district.


As has always been the case, the total amount which Camelot delivers to National Lottery Projects under its current licence depends on a number of variable factors, including the mix of games sold, the channels through which they are sold and the level of unclaimed prizes.


From total ticket sales of £6,730.9 million in the year ending 31 March 2014, £1,751.1 million was raised for National Lottery Projects, while £3,524.4 million was paid to players in prizes. Over the same period, £807.7 million was paid to the Government in Lottery Duty and £309.8 million was paid to retailers in commission.


The allocation of National Lottery funding
Although Camelot is responsible for generating returns for National Lottery Projects it plays no role in the allocation of funding, which is the responsibility of 12 National Lottery distribution bodies, each with specialist knowledge of their sectors.


The income raised for National Lottery Projects from ticket sales is paid by Camelot into the National Lottery Distribution Fund and then allocated to the distribution bodies according to a formula set by the Department for Culture, Media, and Sport. In the year to 31 March 2014, the money Camelot delivered for National Lottery Projects was allocated as follows:

Health, Education, Environment, and charitable causes – 40%

Sports – 20%

Arts – 20%

Heritage – 20%

 

[DGS49]

The problem is not the lack of a lottery. The problem is that their revenues and spending are not in synch. In order to get a lottery passed, promises will have to be made to various constituencies (schools, old farts, whatever) that will ensure that any proceeds from the lottery will be more than consumed by the spending promises that resulted in the lottery.

Raise taxes, cut spending, or both. If you want to legalize MJ or have a lottery, fine, but don't kid yourself into thinking that they will solve the fundamental problem of irresponsibility.