Oregon Governor Quietly Pushes for Larger Lottery Share

SALEM, Oregon – As reported by the Oregonian: "Gov. Ted Kulongoski has become a quiet backroom force in pushing the Oregon Lottery into considering a nearly 50 percent cut in the share of proceeds that bars, restaurants and taverns receive for the lottery's new electronic slot games.

"People close to Kulongoski say he has become more involved than previous governors in determining how much money retailers should get for offering video gambling, which last year totaled $531 million in sales.

"Kulongoski prodded the new lottery director, Dale Penn, to propose that retailers get a 15 percent share of sales from the slot games, which will be introduced in July. Retailers currently get an average commission of about 29 percent for video poker games, which are expected to fade quickly in popularity once the new games begin.

"Leaders of the Oregon Restaurant Association, which represents many of the 2,000 video lottery outlets, say they're disappointed the governor has gotten involved. The push to slash commission rates could depress sales and cost the state money, they say.

"…But Steve Novick, a longtime critic of lottery rates, said he was pleased Kulongoski was getting involved.

"…The Democratic governor's push for a hard bargain with the politically powerful retailers could reap millions of dollars for schools and other government programs. That could help him win support from school advocates who have become increasingly vociferous in contending that retailers get an overly generous deal from the state…"