The Oregon Lottery was created through the initiative process in November
1984 when voters approved by 66% an amendment to the Oregon Constitution
requiring the establishment and operation of a State Lottery. Backers of
the initiative believed economic development was the most pressing need
at that time, and Lottery profits were earmarked "to create jobs and
further economic development." In May 1995, voters approved a Constitutional
amendment adding the "financing of public education." Similarly,
voters added parks and salmon restoration projects to that list of allowable
uses of Lottery proceeds in an election held in November 1998.
The Oregon Lottery's statutory mandate is: "The Lottery... shall be
operated... to produce the maximum amount of net revenues... commensurate
with the public good." The Oregon Lottery's own Mission Statement is:
"Operate a Lottery with the highest standards of security and integrity
to earn maximum profits for the people of Oregon commensurate with the public
good."
Ensuring the security, integrity, honesty & fairness of its games and
operations is the Oregon Lottery's highest priority. It contracts with the
Oregon State Police to oversee all security aspects of the Lottery's games
and operations. The Oregon Lottery's Assistant Director for Security is
an Oregon State Police Lieutenant.
The Oregon Lottery's responsibility is to develop, produce, and market its
games; pay its winners; cover its expenses; and turn the remaining net profits
over to the State. From April 1985 through June 2002 almost $8.3 billion
has been awarded in prizes, and over $3.4 billion has been transferred to
the State Economic Development Fund. Almost $2 billion has been paid to
Oregon businesses and citizens for services and supplies needed to operate
the Lottery.
The Governor and Legislature are responsible for allocating Oregon Lottery
funds for economic development, job creation, public education, and parks
and salmon programs.
The Oregon Constitution requires "At least 84% of the total annual
revenue from the sale of all Lottery tickets or shares shall be returned
to the public in the form of prizes and net revenues benefitting the public."
The Lottery currently returns approximately 95% to the public.
By law, at least 50% of the Lottery's annual sales must be returned to the
public in the form of prizes. The Lottery currently pays out Traditional
game prizes at a combined rate of 64%, and Video Lottery game prizes at
an average rate of 94%. No more than 16% of annual sales may be used for
administrative costs (game vendor expenses, retailer commissions, and Lottery
operating expenses). The Lottery currently operates on less than 4% of its
total annual sales. The remaining balance of net profits is turned over
to the State for economic development, financing public education, and parks
and salmon restoration programs. Profits from the Sports Action game are
dedicated to Intercollegiate Athletics and Academic Scholarships.
The Oregon Lottery is entirely self-financed through ticket sales, and does
not receive or rely on any General Fund or other tax dollars.
The Oregon Lottery had nearly 1,000 retailers when Scratch-it ticket sales
began in 1985, and that number grew to 1,400 by the end of the first year.
The Oregon Lottery now has about 3,300 retailers in total: 1,400+ "Traditional
Game" retailers; 800+ "Video Lottery Game" retailers; and
1,200+ retailers who sell both types of Lottery games.
* All Lottery dollar figures are as of June 30, 2002, unless otherwise noted
