The Arizona Lottery’s director said he expects voters to support the expansion of the lottery in next November’s elections with the lottery’s sales up about 19 percent so far this year.

Jeff Hatch-Miller, executive director of the Arizona Lottery, said after action was taken by the Legislature last year that changed the way the lottery operates, sales for all of its products are up.

“There’s two ways you can run it: like a state agency or like a strategic business,” he said. “We went to a business model where you’re concerned more about what products you have on the shelf and the mechanism which you get them to the potential buyers.”

Hatch-Miller said because the Arizona Lottery is subject to a sunset provision — it has to be reviewed on a regular basis to determine whether the agency should be continued, modified or terminated — the lottery would discontinue on July 2012 if Arizonans don’t vote to support its expansion next year.

“So right now, the lottery is in discussions with the Legislature to put that issue on the ballot for the general election of 2010,” he said.
Rep. John Kavanagh, R-Fountain Hills, said he expects the Arizona Lottery to be extended beyond 2012.

“It’s popular, and … we will be needing an extension so that we can borrow future lottery’s revenues to plug this year’s $2 billion shortfall,” he said.

Hatch-Miller said the Arizona Lottery generates about $130 million a year for the state, all of which goes toward a number of agencies, programs, projects and the general fund. The state would have to come up with alternative funds to pay for those operations if the Arizona Lottery were not extended next year, Hatch-Miller said.

“For players that enjoy the lottery, a form of entertainment would be lost,” he said. “But more importantly, the programs that those players support would cease to have funding.”

Kavanagh said opponents of the Arizona Lottery, a minority, believe it is immoral or that government shouldn’t be involved in gaming.

“Played in moderation, [the lottery] can be entertaining, but I really hope nobody thinks it’s a solution to their finances,” he said. “People should use it more for low cost recreation than anything else.”

The Arizona Lottery’s increased sales show it is a reliable source of revenue but also show that in troubled times, Arizonans gamble more, he said.

“It’s people putting hope over reason,” he said. “When people are facing financial hardships, some people tend to set reason aside and look for a solution in [the lottery], which isn’t a great idea.”

However, Hatch-Miller said the Arizona Lottery considered this and looked at other forms of gaming in the state and nation, such as Arizona casinos, Las Vegas and other state lotteries, and found they are down in revenue and player activity.

“If it is because of the economy, we’re truly unique in Arizona because it’s having a negative impact on the other forms of gaming,” he said.
Parker Young, a business and tourism senior, said the Arizona Lottery is a good way for the state to make money.

“I’m not opposed to it because I’d rather the state make money through that than me pay more taxes,” he said.

Young, who doesn’t usually play the lottery himself, said he doesn’t think many ASU students play the lottery because they have low disposable incomes.

If they do, it’s likely for recreation, he said.

“I think that students would do it more for fun than they would for actually trying to win the money.”

Reach the reporter at
salvador.rodriguez@asu.edu