Kansas lottery pushes for self-service electronic dispensers bill

Installation of the machines in retail locations would translate into an additional $8 million to $10 million yearly in transfers to the state general fund, said Sherriene Jones-Sontag, deputy executive director of the Kansas Lottery.

Legislators in the past have been lukewarm to the idea, but an election of more moderate Republican and Democratic lawmakers and the immense pressure to erase a state budget deficit of nearly $350 million could change the political debate.

Jones-Sontag said net sales for the Kansas Lottery during the previous fiscal year reached a record $273 million.

“This is the third year in a row the lottery has set a new sales record,” she told the House Federal and State Affairs Committee.

“

“

The state general fund received $78 million from the state lottery in the year ending in June 2016, while $150 million in prize money was distributed during that 12-month cycle

”

Retailer commissions totaled $16 million in that year, she said. The state also snagged $1.7 million in unpaid state income taxes by withholding prize awards.

Jones-Sontag said sales with the lottery had totaled $128 million across all games at the mid-point of the current fiscal year. That’s about 5 percent ahead of this time one year ago, she said, but it’s not clear that trend will hold through July.

In terms of the three state-owned casinos, Jones-Sontag said, $80 million was transferred to the state treasury in the last fiscal year from that gaming activity. A fourth casino is under construction in southeast Kansas.

Rep. John Whitmer, R-Wichita, said he was opposed to the statewide indoor smoking ban, but was curious whether the controversial exemption granted for casinos in Dodge City, Mulvane and Kansas City, Kan., might be altered.

“It would reduce the revenue,” said Keith Kocher, gaming facilities director for the Kansas Lottery. “In other states, they’ve seen a pretty severe diminution of revenues.”

Rep. Vic Miller, D-Topeka, said more information should be provided to the House committee about use of $7.3 million transferred to the state from the casinos for the Problem Gambling and Addictions Grant Fund. In the past, lawmakers sounded alarm bells because little of the funding was flowing directly to people with an addiction to gambling.

“Where does that go?” Miller said. “Who decides how it is spent?”