The Lottery Legislative Oversight Committee seemed satisfied today with the Arkansas Lottery Commission’s renegotiation of a controversial ccontract with vendor Scientific Games. It will cut Scientific Games’ cut of scratch-off ticket sales from 1.92 to 1.81 percent, which should produce about $430,000 in the new fiscal year, beginning July 1. Scientific Games has made other concessions as well since an internal auditor raised questions about a change in the original contract.
The committee also learned that the lottery projects a 34 percent gross profit on lottery sales in the year, 1 percent lower than where it is expected to finish this year June 30.
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Lottery Director Bishop Woosley said that the Lottery is cutting it’s salary expenditures by $930,000, and that one of its goals for 2013 is to introduce more players to online games, because the profit margin is higher. He’d also like to see increased ticket sales at claims centers, to cancel out the cost of running the centers.
Sen. Johnny Key, chair of the oversight committee, told Woosley, “If you have positions you’re not going to use, I’d like to see them eliminated from the legislation.” Woosley said he would analyze the situation and have a report before the next meeting.
The committee also heard about an expecting increase in applicants for scholarships financed by lottery profits and the expectation that reserves will be used to cover the rising cost for the time being.