$61.5 million annual lottery revenue would be unstable and unfair

Low-income families would bear higher proportion of lottery tax, see less benefit

LITTLE ROCK - A proposed state-sponsored lottery would raise 40 percent less money than proponents contend and would force a host of problems on the state's most vulnerable residents, according to an analysis by Arkansas Advocates for Children and Families.

Lt. Gov. Bill Halter's proposed lottery could generate about $61.5 million in revenue for college scholarships, according to "Gambling on Our Future: Why a State-Sponsored Lottery is Still a Bad Bet for Education & Families in Arkansas." That's far less than the $100 million that lottery supporters say the state would bring in each year.

In addition, our analysis of several studies and lottery revenue in other states shows that:

• Lotteries threaten the economic security of low-income people who spend a higher proportion of their income on gambling than do wealthier people.
• Lotteries provide unstable revenues that fluctuate even in good economic times.
• Lottery-supported scholarships tend to subsidize students who would attend college anyway and don't create more college graduates.
• Lotteries and other forms of gambling can lead to unintended, negative social and economic consequences for children and their families.

"Most low- and middle-income families in Arkansas are struggling just to make ends meet," said the report's author, Ginny Blankenship, research and fiscal policy director. "A state-sponsored lottery would do far more to hurt than help the vast majority of them."

Arkansas Advocates for Children and Families applauds the state for looking for ways to provide more college scholarships. However, lottery proponents are over-estimating the revenue that a lottery would bring, and worse, underestimating the long-term damage it would do to Arkansas children and families.

"We've always been committed to increasing educational opportunities for all Arkansans," said Rich Huddleston, executive director. "But we want those opportunities to be supported by everyone in the state - and in a fair and reliable way."