Lottery proposal creates questions

Web posted October 22, 2000

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From Staff Reports

Here are some frequently asked questions about the upcoming vote on a South Carolina lottery. Information was compiled from state and local election commissions, No Lottery 2000, South Carolina Education Lottery Coalition, National Association of State and Provincial Lotteries, South Carolina Board of Economic Advisers, South Carolina Policy Council, Palmetto Family Council, South Carolina Education Lottery Operating Plan, National Gambling Impact Study Commission, Bipartisan Lottery Opposition Committee and The Associated Press:

Q: When and where can I vote on a lottery in South Carolina?

A: Nov. 7 in your precinct. If you're not sure where that is, call your local election commission to find out. You also may be able to vote early by absentee ballot. But if you're not already registered, you can't vote.

Q: What would a ``no'' vote mean?

A: The state constitution prohibits lotteries, and a majority ``no'' vote would leave the constitution as it is. ``No'' means you don't want a lottery.

Q: What would a ``yes'' vote mean?

A: Voting ``yes'' means you want the constitution changed so a state-run lottery could benefit education. ``Yes'' means you do want a lottery.

Q: Would the Legislature spend the money on other things?

A: The way the referendum is written, the lottery profits would have to be spent on education. Lottery advocates say legislation will be introduced to assure lottery profits enhance education, not replace existing state dollars. Lottery foes say there's no guarantee what the Legislature will do.

Q: Would every dollar taken in by the lottery go to schools?

A: After prizes and administrative costs, most states allocate a little more than a third of their lottery money to whatever beneficiary they have designated, such as education in South Carolina. Thirty-seven states and the District of Columbia have lotteries. Gov. Jim Hodges' plan would give education 35 percent, but the Legislature could decide something different.

Q: How much money would that be?

A: The South Carolina Board of Economic Advisers projects $150 million a year - about a 2.2 percent increase in what the state puts toward education now.

Q: Are we talking just about college scholarships or kindergarten through high school as well?

A: Mr. Hodges' plan calls for college scholarships in addition to the LIFE scholarships already given B-average students in state universities. The governor says some money would go to technological training, some to upgrading teachers' education, some to capital improvements and some to local schools and colleges to use as they choose.

The Legislature could follow his blueprint or develop its own plan.

Q: How would the lottery be operated?

A: That's another question the Legislature would decide. Mr. Hodges and the South Carolina Education Lottery Coalition want a private business to run the lottery. Most states hire professionals to do it. Models most often mentioned are Georgia and Texas.

Q: Is this a partisan issue?

A: The biggest anti-lottery group, No Lottery 2000, and the main pro-lottery group, South Carolina Education Lottery Coalition, both have a bipartisan makeup. But in general, top Republicans are opposed to a lottery and top Democrats are for it.

Q: Don't lotteries prey on poor people who can least afford them?

A: It depends on how you read the polls. A 1999 Gallup Poll found that 65 percent of people making $45,000 to $75,000 were most likely to play lotteries and had played in the past year. It found that 53 percent of people making less than $25,000 had played in the past year.

But the National Gambling Impact Study Commission found that poor people spend more of their income on lottery tickets than wealthier people do. And a recent study in Georgia found that people whose average income is below $20,000 spend 2.5 times more on lottery tickets than people whose average income is above $40,000.

Ticket outlets tend to be concentrated in poorer areas. The National Association of State and Provincial Lotteries says that's because there are few gas stations and convenience stores in affluent neighborhoods.

Q: Could a lottery lead back to video gambling or other forms of gambling?

A: Mr. Hodges has promised to veto any legislation that attempts to revive video gambling after the long and contentious battle to get rid of it. Unless the makeup of the Legislature changes, it's doubtful lawmakers will try, lottery proponents say. Foes point to states that include video gambling and other kinds of gambling machines in their lottery packages. They contend that video poker could be part of the ``blank check'' given the Legislature if voters approve a lottery.

Fifteen of 18 states with casinos allowed them an average of eight years after approving a lottery, according to the Palmetto Family Council's anti-lottery literature.

Q: What about problem gamblers?

A: Some revenue from a lottery likely would go to assisting problem gamblers if South Carolina follows Georgia's lead. Georgia spends $200,000 a year on problem gambling, according to the North American Association of State and Provincial Lotteries.

Q: When can I get in line for a ticket?

A: Most experts' best guess is that it would be well into next summer or later. It took nearly eight months in Georgia, which already had enabling legislation in place, between the public vote and the first ticket sales. South Carolina has no legislation in place, and the Legislature won't convene again until January.

Q: What would be the odds of winning?

A: For South Carolina, nobody knows yet. In Georgia, with a $1 ticket, your chances are one in 47 to win $3 to $6 and one in 9.37 million to win Lotto Georgia. In the multistate big-money games, the odds can run above 100 million to 1.

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