Mississippi House lottery study committee
A special House committee to weigh the pros and cons of a state lottery held its first meeting.
Geoff Pender
A special House committee took a “lottery 101” course on Thursday, as it begins studying the pros and cons of enacting a Mississippi lottery, which has been a source of political, moral and economic debate since statehood 200 years ago.
“The intent of this group is not to make recommendations, but present facts,” said House Gaming Chairman Richard Bennett, R-Long Beach. He is also chairman of the modern Mississippi House Lottery Study Working Group, which held its first meeting Thursday at the Capitol.
Some state leaders — including Gov. Phil Bryant — and many citizens have been advocating the creation of a Mississippi lottery to lend a hand with anemic revenue and ameliorate lost dollars from residents buying tickets in surrounding states.
But others, including House Speaker Philip Gunn, oppose a lottery on religious, moral or socioeconomic grounds. Gunn created the modern lottery study committee. He said he is giving the committee free reign and not pressuring it toward findings but expects empirical study will show a lottery would not be the windfall proponents claim. He said thorough study should precede any stern legislative attempt to pass a lottery.
Lottery 101
► Merchants in Italy started the first “real” lotteries in Italy during the Middle Ages.
► English Queen Elizabeth chartered the first government lottery in 1566.
► A lottery was used to support the Jamestown settlement in America in 1612, and American Colonies used lotteries to finance public projects, lacking means to levy taxes or issue public debt. Although not included in Thursday’s presentation, George Washington and others used lotteries to raise money for the Continental Army in the Revolutionary War.
► Opposition to lotteries grew by the 19th century “because of the belief that they were morally corrupt, operated dishonestly and created social problems.” By the end of the century, U.S. states and the federal government outlawed lotteries.
► Despite bans, the Louisiana Lottery Co. was formed in 1868 and operated nationwide through the mail, seeing large profits because it had a monopoly.
► In 1890, Congress prohibited sale of lottery tickets by mail and in 1895 prohibited all lottery activity by interstate commerce. By then, 35 states, including Mississippi, had explicit constitutional prohibitions against lotteries.
► From 1894 to 1964, no legal lotteries operated in the U.S., although the Depression had spawned numerous proposals among states. In 1953, legislation to establish a national lottery failed in Congress.
► Support for lotteries grew, and Congress enacted legislation paving the way for state lotteries. New Hampshire established the first modern lottery in 1964, followed by states including New York, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts and Vermont through the 1970s.
► Nearly two dozen states enacted lotteries in the 1980s and 1990s, including Florida, Georgia and Louisiana. In the 2000s, Arkansas, North Carolina, North Dakota, Oklahoma, South Carolina, Tennessee and Wyoming. Today, 44 states have a lottery. Those who don’t are Mississippi, Alabama, Alaska, Hawaii, Nevada and Utah.
Mississippi and the lottery
► Although voters repealed the constitutional ban, lotteries remain illegal in Mississippi, with Section 97-33-31 of state law saying anyone convicted of operating a lottery “shall … be imprisoned in the penitentiary not exceeding five years.” The Legislature would have to repeal this law to create a lottery.
► In a 1990 case before the Mississippi Supreme Court, then Attorney General Mike Moore argued that bingo games constituted illegal lotteries. The court ruled otherwise. The Legislature soon after defined lottery in the Gaming Control Act when casinos were legalized.
► Lottery bills have been introduced in the Mississippi Legislature every year for the last 25 years. Most years, they die in committee without a vote. But the House for the last two years has passed lottery measures, although they were considered mostly protest votes and done as amendments and not considered stern attempts. Bryant, after opposing a lottery for years, last year became the first Mississippi governor to voice support for one in 25 years.
Lottery revenue
Nationwide lottery sales for fiscal 2016 were $80.5 billion. The highest total sales were New York, at $9.7 billion and lowest, Wyoming, at $33.4 million. After prizes and expenses, New York netted $3.3 billion, Wyoming, $2 million.
Purposes for net lottery proceeds
Governance
Lottery players
A 2016 Gallup Survey showed 40 percent of people who bought a lottery ticket in the last 12 months make $36,000 or less a year. It showed 53 percent earned $90,000 or more a year. The survey also said participation in lotteries in the U.S. has declined in recent years.
Casinos urge diligence
Bennett said the lottery study committee will gather info from other states, including advice on things they would do differently in hindsight. He said the group will take field trips to Louisiana and Arkansas to view lottery operations there. He said the group’s next meeting, yet to be scheduled, will look at “operational issues,” followed by meetings on social and economic issues surrounding a lottery.
Bryant had considered adding a lottery to the agenda of a June 5 special legislative session. But this week he told The Clarion-Ledger he has decided against that, largely in deference to Gunn and the study committee.
In the past, Mississippi’s casino industry has lobbied against creation of a lottery but has recently remained relatively tranquil. The Mississippi Gaming and Hospitality Association, prior to the modern committee’s meeting and Bryant’s outlining the special session agenda, wrote a letter to Bryant and the committee. It urged Bryant not to add the issue to a special session, and for the state to thoroughly study the issue before lawmakers make any decision.
But the MGHA did not say it opposes a lottery. One casino lobbyist among several at Thursday’s meeting said his clients want to make sure that if a lottery is enacted, casinos can sell tickets. Bennett several years ago worked on a proposal that would allow Mississippi lottery tickets to be sold only in casinos, but never brought such a bill before his committee.
“First, we believe a lottery bill should be addressed in the course of a full legislative session so that it can be fully vetted,” the MGHA letter said. “… In addition to avoiding unintended and potentially harmful consequences, our members would like to ensure there is ample time to study the economic impact. While a lottery in Mississippi potentially may be a funding source to address the infrastructure needs in our state, it is important that the economic impact be fully considered.”
Thursday’s inaugural lottery committee meeting at the Capitol drew a crowd of about 40, mostly lobbyists and media.
Bennett said that while he supports creation of a lottery, and Gunn opposes it, the committee will be autonomous and present “just the facts.”
“If it’s decided to implement (a lottery), we don’t need to jump out there blindly,” Bennett said. “If it happens, we want it done right.”
