The Alaska Citizen's Guide to the Budget


5.2.11 New Revenues to Fill the Fiscal Gap—Lottery
and Other Gambling

State Administered Lottery

Proceeds vary considerably by state for the 36 states that had lotteries in 1994. The western states had net proceeds of between $9 and $687 million in 1994.

State-administered Lottery Proceeds in 1994 in million $
 
Ticket Sales
Prizes
Administration
Proceeds to Govt
Proceeds / Sales
Total of 34 states
$26,588
$15,296
$1,543
$10,119
38%
Washington
$315
$168
$44
$103
33%
Oregon
$703
$441
$154
$109
16%
Idaho
$73
$41
$14
$17
23%
Montana
$35
$18
$8
$9
26%
California
$1,816
$966
$163
$687
38%
Source: U.S. Dept of Commerce, June 1996, Census and You (monthly newsletter).

With the introduction of video lotteries, the proceeds from state lotteries have increased. The gross income (net of prizes paid out but before payment of costs) from the imposition of video lotteries in Alaska has been estimated to be between $72 and $164 million annually after 5 years. After operating costs the net income would be divided among the owners of the terminals, the owners of the facilities where the terminals are located, and the state. If the state received 50% of the net income, it would be between $36 and $82 million (Workshop on Tools for Fiscal Policy Analysts, UAA fall 1999).

Charitable Gaming

The net proceeds of charitable gaming in Alaska in 1998 were $23 million, based on gross receipts of $284 million—a ratio of net proceeds to gross receipts of less than 10 percent. The net proceeds go to nonprofit charities.

Charitable Gaming in Alaska in 1998
  
Gross Receipts (000)
Prizes (000)
Expenses (000)
Net Proceeds
(000)
Total
$283,924
$216,991
$43,965
$22,967
Pull-Tabs
$215,620
$167,631
$30,193
$17,795
Bingo
$59,513
$44,967
$11,934
$2,610
Raffles
$6,263
$2,315
$686
$3,262
Fish Derby

$1,350

$876
$220
$254
Other
-
-
-
-
Source: Alaska Department of Revenue, Income and Excise Audit Division, Gaming Unit 1998 Annual Report.

 

Casino Gaming

No estimate.

Parimutuel Betting

No estimate.

 

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Page updated January 13, 2003

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