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Oregon Lottery Draws Gambling Payment Dispute
SALEM, OREGON --
Lottery officials are arguing with school support groups in Oregon over the division of gambling revenue. As revenue has declined, some naive activists have proposed that the state's share of the gaming split with local outlets be protected by lowering the percentage given to bars and restaurants hosting the gambling.
Lottery Director Dale Penn says that the unintended consequences of cutting the share paid to bars would be the closing of many bars, thereby reducing the number of gaming outlets and dropping revenue even further. Lottery sales are already off a quarter of last year's numbers.
Some have decried a subsidization of the bars by the lottery. But bar owners say they deserve the share the state pays them, for which they handle all the distributing for the state.
Bars currently get 24 percent of money lost on lottery gambling. The figure was originally set at 35 percent, as government thought two-thirds was tax enough, but that number has been lowered several times recently.
Last year bars and other lottery outlets received $187 million from gambling revenue. The state of Oregon collected almost $600 million, but says it is due more.
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