Gambling has generated more than $1.5 billion for South Dakota
Lottery a 'windfall' for state
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Marvin Robinson of
Rapid City is one of the people to win big during the almost 20
years that the South Dakota Lottery has existed. Robinson won
$68,995 in the Dakota Cash Jackpot on Feb. 16, 2006.
Robinson, who works
in Rapid City as a janitor at the South Dakota School of Mines
& Technology, is a longtime lottery player. He has been playing
in South Dakota for a number of years and played when he lived in
Indiana and Illinois.
Robinson used the
Dakota Cash Jackpot money mostly to pay off credit cards and his
motorcycle.
"I just paid off a
few bills," he said. "I didn't quit work or anything. I just paid
off a couple credit cards. It was like a small
windfall."
He said he plays
for excitement and the chance to win the big one.
Robinson calls
himself an "avid lottery player." He gambles once in a while in
Deadwood but mostly sticks to buying lottery tickets. He is still
waiting for the payout that will allow him to quit his
job.
"I'm just shooting
for the big one," he said. "I feel like I'm going to hit it one of
these days."
Robinson isn't
alone. Since the South Dakota Lottery system kicked off almost 20
years ago, it has generated more than $1.5 billion for the state of
South Dakota.
Over those years,
the lottery system has seen a lot of changes and challenges,
produced a lot of big winners, and more than likely quite a few
losers.
It all started
April 2, 1987, when the bill authorizing lottery in South Dakota
was signed into law. Then, on Sept. 30, the first scratch ticket
was sold. Video lottery was started Oct. 16, 1989, and the first
Lotto ticket was sold Nov. 15, 1990.
South Dakota
Lottery Executive Director Norm Lingle said the system was created
to generate state revenue.
"The lottery was
put in place to basically generate revenue for needed state
programs and projects," Lingle said. "It continues to be the
mission and goal of the lottery to continue down that
path."
Over time, the
system has done just that, raising money for a variety of different
entities in its almost 20 years of existence.
Since its inception
in 1987, the lottery has garnered $382,231,911 for the state's
General Fund, $25,274,474 for the Capital Construction Fund and
$1,155,387,308 for the state Property Tax Reduction
Fund.
The money for the
General Fund goes towards supporting K-12 schools, state
universities and technical institutes, according to information
provided by Mike Mueller, director of advertising and public
relations for South Dakota Lottery.
The Property Tax
Reduction Fund money goes to reducing local property taxes on owner
occupied and agricultural land, according to Mueller. And the
Capital Construction Fund money helps local communities pay for
rural water systems, community drinking water and wastewater
improvement projects and recycling and waste disposal
programs.
Over the span of
years that the lottery has raised those millions of dollars, it has
also changed technologically, Mueller said.
For instance,
scratch ticket winners used to have to redeem their prizes at the
stores where they bought the tickets. Since 1994, a tracking system
has centralized that system so winners can redeem their tickets
anywhere, Mueller said.
"I think that
really opened up the possibilities for our players, and they
responded well to it," he said.
Also lottery
terminals, which used to be connected by phone lines, are now
connected by satellites, which make transactions go much faster.
And the state has produced a more efficient system of printing
tickets, which leads to more money being available for state
funds.
"It's kind of a
matter of inches, I guess, is how I would describe it," Mueller
said. "As things come up that allow us to be more efficient, we do
that."
And just who is
buying all those lottery tickets?
Mueller said that
depends on age.
"Probably the
fewest players we have are between 18 and 24," he said. "Once they
get beyond 24, even 30, that's where we see the majority of our
players."
Mueller said buying
a lottery ticket is not as exciting for younger
people.
"I think the game
itself isn't as interesting to that age demographic," he said.
"Certainly I think that would be true with our lottery tickets,
where you buy your ticket and wait up to three days to find out if
you've won. It just may not hold as much interest to them because
they are so used to so many rapid-action entertainment
avenues."
A number of people
have won large prizes while playing South Dakota Lotto. The largest
was Bill and Tina Nguyen, who won $116,800,000 playing Powerball in
2006.
The second largest
was a $50,900,000 jackpot won by the Watertown 34 group in February
2003.
Although the
lottery has raised a large amount of money for the state and
produced many big winners, there are those who challenge whether
the revenue is worth it.
The most
controversial issue has been with video lottery. Video lottery has
faced challenges from the Supreme Court and has been voted on by
the citizens of South Dakota four times.
Dave Jetson, a
counselor for Jetson Counseling in Rapid City, works with a variety
of addicts, including those who are addicted to
gambling.
"I've seen it tear
up families - divorces, losing their homes, losing family
connections," he said. "Basically, they can lose
everything."
He said video
lottery is the most addicting of the three kinds of lottery in the
state.
"I think there's a
bit of an addiction (with scratch and Lotto tickets), but it's not
as devastating as video lottery because most people aren't going to
spend 5 or 10 thousand dollars," he said.
Jetson said video
lottery players gain more of an emotional attachment to playing and
receive a natural high from it.
He said there are
those who can play video lottery in moderation, but people who have
addictive personalities should stay away from the
machines.
Lingle said the
South Dakota Lottery does what it can to prevent people from
falling victim to gambling problems, including posting warning
labels and phone numbers for people to call if they think they
might be addicted.
"I think the
lottery has been very straightforward in recognizing that some
people may have an issue with the lottery … just as some people
have issues with alcohol and tobacco," he said.
Lingle also said
the South Dakota Lottery provides up to $214,000 per year to the
Department of Human Services to assist with gambling
treatment.
Lingle said the
future of the South Dakota Lottery looks strong, as long as the
system keeps the people's trust by being fair.
"Everyone has an
equal shot at winning the prizes," he said. "The randomness is
there. You have just as equal of a chance at purchasing a winning
ticket in Buffalo as you do in Sioux Falls."
He said lottery
officials are always looking to keep the "security and integrity"
of the lottery system.
Mueller said
lottery officials continue to come up with new ideas for the
lottery system, including about 25 new games each year for the
tickets. That includes a new scratch ticket that will come out on
Sept. 30. It will cost $20 but will have a possible payout of
$200,000.
As far as keeping
the controversial video lottery system around, Lingle points to the
choice of voters in South Dakota.
"The citizens of
South Dakota have voted four times specifically on video lottery,"
he said. "They have affirmed keeping that program
around."
Jetson believes it
will be around for awhile, too.
"I believe it's
here to stay. What drives the economy is revenue. And it's been a
great revenue producer for South Dakota," he said. "I wish there
would be a healthier revenue generator personally. But because it's
so profitable for the state, I don't see it changing anytime soon."
Contact Ryan
Woodard at 394-8412 or
ryan.woodard@rapidcityjournal.com
Posted in Top-stories on Friday, August 24, 2007 11:00 pm
/news/local
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