Category Archives: lottery

Missouri Senate Proposes Gambling Expansion at a Time Many View as Socially Irresponsible

Casino Watch Focus has reported on the ongoing gambling expansion issues in Missouri.  The most recent issues have been the illegal gambling machines in places like gas stations and truck stops and those hoping for a new casino at the Lake of the Ozarks.  This specific expansion policy involves increased pull tabs at truck stops, and several Missouri legislators thing the idea is socially irresponsible.  The Columbia Daily Tribune reports:

The Missouri Senate passed its spending plan Tuesday with language allowing the state lottery to install 100 new pull-tab machines throughout the state and open up truck stops to the games for the first Time. Currently, only 500 are allowed and they can only be installed in veteran and fraternal organizations. The pull-tab name refers to the perforated tabs covering slot-machine style symbols on tickets dispensed by the machines. Players pull back the tabs to see if they’ve won a prize.

But a number of lawmakers objected to the idea, calling the expansion morally wrong. Sen. David Sater, R-Cassville, said it would be “a direct offense to our low-income people who will divert their money to things like this.” “This bothers me a lot,” he added.

Sen. Ed Emery, R-Lamar, said the same thing and that it would be even worse at a time when people are reeling from the pandemic and the resulting downturn. “With people not thinking as straight as they normally would with all the pressures of the stay-at-home and lack of community and other things that would stabilize a person, I think the impact would be even greater than it would at another time,” he said.

Sen. Eric Burlison, R-Battlefield, added that the idea “disgusted” him. “I’m not a fan of funding our schools through gambling,” he said.

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States Urged to Temporarily Shut down Lottery Gambling as Coronavirus Economic Stimulus Checks are Sent Out

Casino Watch Focus has reported on the various impacts Covid-19 is having on the gambling industry. All across the country, casinos are being closed, alongside other businesses, as stay at home orders are in place to prevent the spread of coronavirus.  Obviously this has lead to a sharp downturn in the economy and the government has responded with economic stimulus checks.  One group is wisely suggesting to state legislators to temporarily suspend their lotteries to help ensure that money can be spent on essentials, and not sent back to the government through state funded gambling.  An online source reports:

Stop Predatory Gambling, which has been a familiar face at online gambling hearings on Capitol Hill over the years, on Monday sent a letter to governors of states with lotteries. SPG National Director Les Bernal said in his letter that federal relief money sent to families could be used to “subsidize state lotteries.”

Bernal called for lotteries to temporarily shut down by arguing, in part, that people shouldn’t be able to spend their stimulus checks on that form of state-sanctioned gambling. Casinos across the country have closed, sports betting has come to a near standstill, and only four states have some form of legal online casino gaming. That has left the lottery as the only widespread form of gambling still active.

“We are writing to call on you to immediately shut down the marketing and selling of all state lottery gambling games until the financial turmoil caused by the coronavirus has passed,” Bernal said.

Such advocacy is solidly grounded as those with the least economic ability tend to be the ones to spend the most on the lottery.  Les Bernal addresses these issues in a press release that accompanied the letter:

As part of its letter to state officials, Stop Predatory Gambling included its 2020 Briefing on State Lotteries also issued on Monday. The report spotlighted lotteries as one of the root causes why more than 60% of Americans had less than $1000 in savings before the coronavirus pandemic occurred.

The report found “state governments have turned a nation of small earners, who could be small savers, into a nation of habitual gamblers on course to lose more than $1 trillion of wealth to government-sanctioned gambling over the next eight years. At least half of this wealth – $500 billion – will be lost to state lotteries.”

Bernal hopes the lottery shutdown and the new report will bring sorely-needed attention to “America’s most-neglected problem today.”

“Building assets and the accumulating and investing of savings, are the keys to financial peace,” Bernal said.   “A home, a college fund, retirement accounts, a stock portfolio—these assets are the hallmarks of middle and upper class America, and they are all the result of savings. Creating wealth by the accumulation and investment of savings is the direct opposite of what state lotteries represent and encourage.”

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New Florida Lottery Bill Seeks to Prevent Gambling Expansion

Casino Watch Focus has reported on the ongoing efforts by legislators to pass meaningful gambling legislation in the area of state sold lottery tickets.  Last year a bill was passed that required warning labels on Florida lottery tickets. That bill was vetoed by the Governor, citing a loss of revenue due to belief that large warning labels would cause less gambling on lottery tickets. This year, a new bill is being introduced that seeks to address the Governor’s concerns, while still preventing gambling expansion on other fronts.  Florida Politics explains:

The measures require the “play responsibly” message to be printed on the lottery ticket and take up at least 5% of the ticket’s total surface area. That’s a reduction from previous proposed warning messages, which were more detailed and took up more space on those tickets.

The legislation also mandates the message be displayed in TV, electronic or paper ads, with the same requirement that the message take up 5% of the surface area of the advertisement. For radio ads, the warning must be issued at the end of the promotion.

Both new bills include a provision barring lottery games that are tied to athletic events. “The [Department of Lottery] may not authorize the operation of a lottery game in which the winner is chosen on the basis of the activities or outcomes of one or more sporting events,” *the bill reads*.

Finally, the legislation would require $500,000 annually for an advertising program warning against gambling addiction. “The department shall, subject to competitive bidding, contract for such services, which must include an advertising program to encourage responsible gambling practices and to publicize a telephone help line,” the measure reads.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


Missouri’s Illegal Gambling Machines are Hurting Public Education Funding

Casino Watch Focus has reported on the on going issue of illegal gambling machines cropping up all over Missouri. These machines are essentially unregulated slot machines in areas outside of Missouri’s regulated casinos. Enforcement issues have been cited, as no one seems to be responsible for shutting them down. This has lead to their proliferation and only now are lawmakers starting to notice.

One of the bigger issues being reported is how money is being syphoned away from public educating funding. Gambling money being used to fund public education is already a troubling proposition, as it general boils down to a shell game of transferred money. Essentially the state has a budget for education. Then a tax on gambling is proposed, normally in exchange for expanded gambling, and a specified amount is then transferred to education. The problem is the original budget is almost always reduced or set in anticipation of the gambling money. It’s rarely ever an actual increase in funding for public education. So it/s even more critical that the expected revenues are collected as the state has made itself reliant on such gambling funds. Now that these gambling machines are spreading and pulling people away from legal, regulated and taxed gambling facilities, and state lottery sales, its public education that’s taking a hit. An online source explains: 

The Missouri Lottery’s executive director testified Thursday in Jefferson City that illegal slot machines are hurting public education in the Show-Me State. Illegal slot machines can be found in bars, restaurants, gas stations and convenience stores.

Scheve Reardon testified during a 90-minute hearing before the House Special Interim Committee on Gaming, which is chaired by State Rep. Dan Shaul, R-Imperial. Shaul tells the audience that illegal slot machines cost Missouri education at least $50 million last year. He says the alleged illegal slot machines are hurting the Lottery, thereby impacting classrooms.

“The (Missouri) Lottery is losing revenue here, because of these alleged illegal machines. So are the (Missouri’s 13) casinos, so is everybody across that’s funding the state. The state is losing money because of these,” says Shaul. Thursday’s hearing was the committee’s second in two weeks. The Missouri Gaming Commission testified before the committee on August 22, saying the state needs a coordinated effort to stop the illegal machines.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


UPDATE: Florida Gov. DeSantis Vetoes Lottery Ticket Warning Labels

Casino Watch Focus has reported on the many ongoing issues surrounding the Florida Lottery, with the most recent being a bill that sought to place warning labels on lottery tickets. The warnings would be visible on the ticket and remind players that lottery games could become addictive and to play responsibly. There was immediate opposition from those who relied on gambling as a source of revenue as they seemed to believe the warning labels would be effective and thus reduce their coffers. No Casino’s John Sowindki responded by pointing out the moral dilemma in funding education off gambling addicts, but it would appear that position is being rejected by Florida Gov DeSantis as he has vetoed the bill the passed the Florida legislature. An online source reports:

Lawmakers seeking to slap gambling-addiction warnings on state lottery tickets and advertising once again failed to scratch out a winner.

On Friday, Gov. Ron DeSantis, noting potential impacts to money for education, vetoed a controversial bill (HB 629) that sought to require the following warnings to be prominently displayed on the front of all lottery tickets: “Warning: Lottery games may be addictive,” or “Play responsibly.”

DeSantis in a letter accompanying his veto noted that Florida Lottery officials expressed concerns the new warning requirements could affect marketing and participation in multi-state games.

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Florida Gov Encouraged to Pass Lottery Ticket Warnings

Casino Watch Focus has reported on a Florida Bill that would call for warning labels to be placed on the front of physical state lottery tickets sold, as well as prevent online sales in the future. The warning labels would be visible and warn that playing lottery games constitutes gambling and may lead to gambling addiction. Those in support of using gambling as the means to fund education took issue with the bill and drafted a letter. No-Casino’s John Sowindki addressed the problems with the letter and encouraged passage. Florida Politics reports: 

“The lottery industry would rather pretend that there are no adverse consequences to their regressive and addictive enterprise,” said No Casinos President *John Sowinski*. “Clearly there are.” Sowinski goes after specific points raised in a letter from World Lottery Association President *Rebecca Paul Hargrove* to Gov. *Ron DeSantis.*

Hargrove argues requiring warning labels on the front of lottery tickets threatens education revenues in Florida and sets bad precedent nationwide. “The instant scratch-off games have been around for over 45 years, and sales of these games continue to grow every year,” Hargrove wrote, “but more importantly the sales of these games continue to grow funding for good causes every year.”

Sowinski suggests Hargrove gives up the game in her search for further lottery sales.“Rebecca Paul Hargrove’s letter is basically an admission that if Floridians are properly warned about the addictive nature of scratch-off games and other lottery products, that some will choose to not spend money on them,” Sowinski said, “which is the entire purpose of this good legislation.”

Moreover, Sowinski then brings into question the very nature of raising funds off those that are addicts in the first place. Florida Politics continues:

The legislation requires ticket labels read either “WARNING: LOTTERY GAMES MAY BE ADDICTIVE” or simply “PLAY RESPONSIBLY.”

Sowinski scoffed at the reluctance to warn against dangerous behavior or to demonstrate responsibility.

“The World Lottery Association’s letter never disputes the addictive nature of these games,” he said. “The fact is that gambling enterprises, including lotteries, rely on addicts who spend a high volume of money for a large portion of their profits. That they would object to a simple, truthful warning label is obnoxious.”

The bill has been sent to the Governor’s desk and awaits his action.

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DOJ Seeks to get State Online Lottery Lawsuit Dropped

Casino Watch Focus has reported on the Department of Justice’s reversal of the Wire Act and that decision’s impact on online gambling. Many said lawsuits would be the deciding fact as to whether or not they could reverse the out of place Obama Administration’s reinterpretation of the wire act, which lead to the massive expansion of online gambling. One area of concern for states has been the impact on state lotteries, specifically where those state offer online access to their lotteries. The DOJ recently extended the deadline as they wanted to more closely examine the full range of its ruling. The DOJ is now seeking a motion to dismiss a lawsuit brought by New Hampshire claiming they don’t have standing to sue yet and that the state hasn’t proven that the ruling would even impact them. The Associated Press explains: 

The U.S. Justice Department says in a federal court brief that the New Hampshire Lottery Commission has failed to demonstrate that it wouldn’t be immune from 1960s law enacted to crack down on the mob.

On Thursday, the Justice Department filed the brief in Concord, New Hampshire, in response to a judge’s order for it to clarify its interpretation of the Wire Act. States fear losing at least $220 million annually in lottery profits if the Wire Act is determined to apply to all forms of gambling that crosses state lines.

The department also affirmed any early promise to not prosecute state lotteries or their vendors while it continues to review whether the Wire Act applies to lotteries.

The concern goes beyond the state of New Hampshire. Several states offer online access to their lotteries and some lotteries extent to multiple states. Some believe the intent of the DOJ isn’t to stop lotteries, as Powerball and Mega Millions are too engrained as a societal norm, but the actual transactions might very well fit the original 1960 Wire Act. An online source explains: 

The states are anxiously waiting on a clarification from the Justice Department about its opinion that, if strictly interpreted, would outlaw lottery tickets sold online and prohibit all lottery-related activities that use the internet. Legal experts say Powerball and Mega Millions are at risk if the opinion is read to the letter, which would cost the states billions. 

Seven states now sell lottery tickets online and others offer residents internet-based lottery subscription services.

When state lotteries use the internet to transmit data for online ticket sales, the network signal can cross state lines, and games that are played in multiple state s, like Powerball and Mega Millions, transmit data to a central database out of state, according to the North American Association of State and Provincial Lotteries.

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