Mich. lottery chief
wonders about education funding
In Michigan, lottery commissioner Gary
Peters is worried that the new gambling
amendment will cause a huge decrease in
education funding.
A proposed constitutional amendment on the
November ballot, he says, would hurt state
lottery revenue and decrease dollars for
public education. In the past year, the
lottery put $586 million in profit into the
school aid fund, accounting for 5 percent of
the fund's revenue.
The measure would require voters to give
their OK before any new gambling could begin
in Michigan -- except at American Indian
casinos and three Detroit casinos. A vote
also would be needed if the lottery starts
any new game using table games or
player-operated mechanical or electronic
devices after Jan. 1, 2004.
Peters says the popularity of most lottery
games, except stalwarts such as Daily 3 and
Mega Millions, wanes over time. The lottery
must offer creative new games to compete
with the state's 20 casinos, he says.
The amendment's supporters say the lottery
has nothing to worry about -- unless it
tries to introduce casino-style games or
video slot machines.
The group, led by former Republican
gubernatorial candidate Dick Posthumus,
collected more than 443,000 certified
signatures to put the issue on the ballot.
Members consist of casinos, who oppose a
legislative effort to allow video lottery
machines and slot machines in horse tracks.
They generally want to curb the expansion of
gambling to avoid competition. They're
joined by Posthumus and others who dislike
gambling for moral and ideological reasons.
The amendment's backers stress that Club
Keno wouldn't be affected. Instant
scratch-off tickets are OK, too.
Martin says the Detroit casinos went through
the same process in 1996 before they opened.
Voters OK'd the lottery in 1972. The ballot
issue simply would give Michigan voters the
final decision on what gambling is
allowable, he says.
But lottery officials fear the measure, if
passed, could affect future revenue.
For instance, the lottery wants to introduce
self-serve terminals in convenience stores
and other businesses as early as next year,
saving labor costs and catering to an
increasingly time crunched public.
This makes many wonder if an ATM-type machine
is a player-operated mechanical or
electronic device.
New player-operated games would face a vote,
Peters says. He worries public debate in the
next two months could put casinos against
horse tracks that want to add video gaming,
leaving out any discussion on the ballot
issue's effect on the lottery and state
education dollars.
It is also noted that he is concerned because the lottery,
under state law, would be barred from
spending money to weigh in on future ballot
issues.
But Lance Boldrey, an attorney for Atwater
Entertainment Associates, part owner of
Detroit's Motor City Casino, said lottery
officials are reading too much into this.
He says the measure would simply bring
Michigan into line with other states that
require voters to decide how much gambling
is enough.
Jessie Stipcak, owner of Reno's West Sports
Bar in Lansing, grapples with the issue.
Reno's got Club Keno about two-and-a-half
weeks ago after seeing its popularity in
other bars and restaurants.
Unlike some lottery games, Club Keno is
quick. New numbers pop up on the monitor
twelve times an hour. Betters often hand the
bartender $5 or $10 and play for 30 minutes
to an hour.
It is not the instant action one finds at the
blackjack or craps table. But the
distinction between Club Keno and a
casino-style game isn't a huge one.
