A Look Back at the Oregon Lottery®
Introduction:
As a result of two voter initiatives, the Oregon Lottery® was created in 1984 to support economic development and job creation throughout Oregon. In the 24 years since it began selling tickets, Lottery proceeds have benefited education, the environment, and economic and community development across the state. By law, at least 84 percent of total annual revenues must be returned to the public; of that at least 50 percent must be returned to the public as prizes and the remainder used for the public purposes authorized by voters. No more than 16 percent of total annual revenues can be used for administrative expenses. Lottery expenses are currently at 2.8 percent of revenue. The Oregon Lottery is entirely self-funded and receives no tax money or other revenue.
Commission:
The State Lottery Commission is comprised of five members appointed by the Governor and confirmed by the Senate. At least one of these members must be a Certified Public Accountant and another member must have at least five years of law enforcement experience. The Director is appointed by the same process and is responsible for the day-to-day administration of the Lottery and its employees. The Director also serves as the Secretary and Executive Officer of the Lottery Commission.
Games:
The Oregon Lottery offers a wide variety of games, ranging from Scratch-it tickets
SM to Video Lottery
SM games and more.
On April 25, 1985, the Oregon Lottery issued its first instant ticket game. By November of that year, Megabucks
SM followed as the first on-line, computer-operated lottery game in Oregon. In 1989, Sports Action was introduced and became the first sports lottery game in the nation based on the outcome of professional athletic events. The proceeds generated by Sports Action funded academic scholarships and intercollegiate athletics. Scoreboard, a second game based on the outcome of professional athletic events, was introduced in 2003. The 2005 Oregon Legislative Assembly removed the Lottery’s authority to offer all sports wagering games, including Sports Action and Scoreboard, effective July 2007.
By 1992, the Oregon Lottery was also offering Keno, Powerball®, Daily 4, Breakopens (pull-tabs), and Video Lottery games throughout the state. The Video Lottery gaming system served as a milestone, as it was the first 24-hour, centrally controlled gaming system in the country.
The Lottery’s current product mix includes Instant Scratch-its, Megabucks, Keno, Powerball, Pick 4
SM, Win For Life
SM, and Lucky Lines
SM. The Lottery also offers Video Lottery games that include both poker and line games.
Lottery Proceeds:
From 1985 to 1995, Oregon Lottery proceeds benefited economic development and job creation, as authorized by voters. In May 1995, Oregon voters directed a portion of annual Lottery proceeds to be used to finance public education. That ballot measure also established the Education Endowment Fund and dedicated 15 percent of Lottery proceeds to that fund. Voters amended the Constitution in 2002 to increase the amount to 18 percent and change the name of the fund to the Education Stability Fund. In 1998, the voters passed a Constitutional amendment requiring 15 percent of Lottery proceeds to be used for state parks and natural resources, including watershed conservation and salmon habitat.
As a result of these votes, there are currently three voter-approved uses of Oregon Lottery proceeds. The Legislative Assembly is responsible for allocating those Lottery proceeds not dedicated in the Constitution, within the three categories approved by voters.
From the introduction of the Lottery in 1985 through June 2008, over $5.9 billion in profits has been allocated to public education, economic development, parks, and natural resource programs. During that same time period, Oregon Lottery players have won over $16 billion in prizes. In addition to the statewide allocations, every county receives a portion of total Video Lottery net receipts for local economic development projects.
Current Organization:
The Oregon Lottery is comprised of five internal divisions, including the Director’s Office, Security Division, Marketing, Support Services and Retail Operations.
The Director’s Office is responsible for the overall administration of the Lottery, as well as external activities, operational support, public affairs, internal audits, rules and policies, retail contracts administration, liaison to the Lottery Commission, and legislative matters.
The Lottery contracts with the Oregon State Police to partially staff the Security Division, which also includes Lottery employees. The division oversees all security aspects of the games operations, as well as physical security for the agency. This includes ensuring the integrity of Lottery personnel, retailers, contractors, manufacturers, lottery games, drawings, winning claims, and ticket validations. Security also performs background checks in accordance with personnel decisions and retailers. The division conducts investigations in the event of criminal activity against the Lottery. Ensuring the security, integrity, honesty, and fairness of its games and operations is the Oregon Lottery’s top priority. The Oregon Lottery Assistant Director for Security is an Oregon State Police Major.
The Lottery’s Marketing department is responsible for product research, game development, new product development, advertising, and promotions. This department also creates awareness of Lottery-funded projects and develops and promotes responsible gambling messages.
Support Services maintains payroll, human resources, product distribution, inventory, training and development, information systems, and facilities maintenance. This department also records and monitors daily financial activity and reports to the Commission, Governor, and public interests.
Retail Operations manages sales and service throughout Oregon. Product sales, equipment maintenance, and retail training are also managed by this department.
