| Oregon Lottery | |
| Launch Date: | 1985 |
| Operator: | State of Oregon |
The Oregon Lottery is run by the government of the U.S. state of Oregon. It is a member of the Multi-State Lottery Association (MUSL).
The Oregon Lottery was authorized by “Oregon Ballot Measure 5” which was passed by voters in the 1984 general election. The measure amended the Oregon Constitution to allow a state lottery to be created. The Lottery began in eventually offering two types of games: scratch-it tickets, and a drawing game, Megabucks. The Lottery has introduced many games, while removing those that were not successful. In fiscal year 2006, the Lottery's sales reached $1 billion for the first time.
The following games (including those retired) have been offered by the Lottery:[1]
The allocation of lottery profits is determined by Oregon voters, who approve the broad categories that may receive Oregon Lottery funds.[2] Constitutional amendments have allowed using lottery funds for economic development (Oregon Ballot Measure 4 in 1984), public education (Oregon Ballot Measure 21 in May 1995) and natural resource programs (Oregon Ballot Measure 66 in 1998).[2] In 2016, Oregon voter approved Measure 96 that amended the state constitution to set aside 1.5 percent of Oregon's lottery funds for veterans programs. Measure 96 passed with 84 percent of voters in favoring the amendment.[3] [4] The Oregon State Legislature and Governor appropriate the remainder of lottery funds within those categories during each legislative session.[2]
As of 2012, over $5 billion of lottery proceeds have gone to public education, $2 billion to economic development, $900 million to natural resources (including Oregon State Parks and watersheds), and over $50 million for problem gambling treatment programs.[2]
Oregon dedicates about 1% of lottery proceeds for problem gambling prevention and treatment programs.[5]
Like other U.S. lotteries (and gambling in general), the Oregon Lottery has drawn its share of controversy. Topics of debate include: the morality of legalized, government-sponsored gambling; the disproportionate economic impact that gambling (of all kinds) has on the poor; and, the suitability of lottery dollars as an alternative (to taxes) revenue source.[6] Several issues have been unique to Oregon, however.
In 2009, the lottery was criticized for calling its most frequent players "loyal customers", when many of them may in fact be problem gamblers that contribute a large percentage of revenues.[7]
Other controversies include the 1992 introduction of video poker machines, which may be installed in a wide number of locations, such as bars and other adults-only establishments. In 2005, the lottery added electronic slot machines.[8]
In 1989, the lottery added Sports Action, a parlay game allowing wagers on National Football League (NFL) games. The reaction from the sports world was negative. The NFL was highly displeased by this move, though legally powerless to stop the Oregon Lottery as the game took care to avoid infringing upon any NFL trademark (no NFL team names were used; NFL teams were identified by city). They even stated that Oregon would never have an NFL team as long as the betting continued.[9] The revenues were used to provide funding to intercollegiate athletics in the state.[9]
In 1990, National Basketball Association (NBA) games were added (excluding games involving the Portland Trail Blazers.) This prompted a lawsuit from the NBA; however, betting on basketball did not prove financially viable, and the lottery discontinued NBA betting the following year (settling the lawsuit with the NBA thereafter). Still, wagering on football proved highly successful for Oregon, bringing in over $2 million yearly in proceeds. The National Collegiate Athletic Association (NCAA), long opposed to sports betting, took the position that no post-season basketball games (which are played at neutral sites) would be held in Oregon so long as Sports Action was available;[9] the NBA criticized Oregon even after its wagering on NBA games was discontinued.
Many proponents of the lottery rebuffed such criticism, noting that the Oregon Lottery, with a maximum wager of $20, was "small potatoes" compared to the Las Vegas sports book and the various illegal sports books throughout the country. Further, it had been pointed out that the overwhelming popularity of the NCAA Men's Division I Basketball Championship is driven by office pools and other forms of gambling.
In 1997, a bill was introduced to eliminate the lottery game,[9] but was not enacted into law. In 2005, House Bill 3466 was passed by the Oregon State Legislature and signed into law by Governor Ted Kulongoski; this bill outlawed Sports Action game as of the conclusion of the 2006–2007 NFL season.[10] As a result, the Rose Garden arena was awarded regional games in the 2009 NCAA men's basketball tournament.[11]