The Schools Got Lucky, Too
By Dave Rosenberg, Yolo County Supervisor, 4th District and Chairman of the California State Lottery Commission
Almost everyone has an opinion about the Lottery. Some of the opinions are positive, some are negative. But the simple fact remains that the California State Lottery, since it was started in 1985 after a 1984 vote of the people, has sent almost $13 billion to our schools. This fiscal year alone, the Lottery will send the largest amount ever to our schools: over $1 billion.I know something about the California State Lottery. In March of 1999, within two months of taking office, Governor Gray Davis made me his first appointee to the California State Lottery Commission. I served as Vice Chairman of the Commission in 1999, and was selected as Chairman in 2000 and again in 2001. During my tenure on the Lottery Commission, about $3 billion has been sent to California education, including about $10 million to Yolo County schools.
Each school district in California receives lottery money, based on average daily attendance. Yolo County schools get their share as well. In the 1999-00 fiscal year, Yolo County schools received $3,441,284 broken down as follows: Davis $1,015,749; Woodland $1,227,058; West Sacramento $743,734; Esparto $111,517; Winters $248,929; and the County Superintendent of Schools $94,295. From 1985 to 2000, Yolo County schools received $41,318,114 from the Lottery. The two biggest school districts, Woodland and Davis, received $15,280,829 and $11,694,922 respectively during that period. The Lottery also provides funds to the community colleges, the state university and colleges, and to the University of California. The UC system, for example, has received $269,784,603 from the Lottery from 1985 to 2000. During the 1999-00 fiscal year, the UC system received $18,943,129.
The Lottery provides games of chance for the adult public, usually at $1 a chance. There are actually six different Lottery "products". I call them "products" because they are sold to consumers through 19,000 retailers, throughout California. Most consumers are only familiar with a couple of the lottery products. The most visible of the Lottery games is the "Super Lotto Plus" which is a traditional lotto game. Players pick six numbers with a chance to win millions. Recently, I presented the winning check to a $89 million super lotto plus winner. The other product which has become equally popular to super lotto plus is the "scratchers" game. This is an instant win game where the buyer scratches the ticket to determine if and how much they win. There are actually many different scratcher games to choose from at any one time. Some are $1 tickets, some are $2 tickets, and a few are even $3 tickets. Recently, the lottery sponsored a very popular Harley-Davidson scratcher where winners could actually win a Harley!
The other four lottery products are not as well-known, but seem to each have a loyal following. One is "Fantasy Five" which is a five-number lotto game (sometimes called "little lotto"). The prizes aren't as large as super lotto plus, but it's easier to win. Another is "Hot Spot" which is played primarily in lounges and resembles a "keno" game in appearance. Yet another is the "Daily Three" which is a pick three numbers game. Finally, there is "Daily Derby" which has a horse-racing theme where players pick winning horses as well as winning times for fictional races.
The Lottery also runs a television show called "The Big Spin". It's an extremely popular program and no one gives away more money than the Lottery. Players get a chance to spin the big wheel to win millions.
The Lottery dollar is strictly controlled by the Lottery Act. Here's how it works. For every dollar taken in by the Lottery, the division is as follows: a minimum of 50 cents must go back to the players in prizes; at least 34 cents goes to education; not more than 16 cents is spent for administrative costs. In fact, in recent years, about 52 cents has been going toward prizes to players, 36 cents has been going to education, and 12 cents has been spent on administrative costs. Those administrative costs, by the way, include between 6 and 7 cents which go back to the retailers in commissions, about 3 cents is spent for advertising and game costs, and only 3 cents is expended in actual administrative costs for running the Lottery. Pretty efficient.
As Chairman of the Lottery I get asked a lot of questions. Here are the three most frequently asked:
Question: Why does the Lottery insist on having those big $25 million or $50 million jackpots? Why not have 25 or 50 $1 million jackpots instead?
The Lottery, like any other business, caters to the demands of the consumers of its product. The Lottery doesn't insist on larger jackpots, the lottery players do. When jackpots are small, fewer people play. As jackpots get bigger, more and more people play. In fact, when jackpots get really large (in the $40 or $50 million range) casual players start to play. The Lottery makes more money for education when the jackpots are big.
Question: Does the Lottery target poor people?
Not at all. Statistically, the players of the California Lottery look like California in general. The only statistical abnormality I have seen is that men play more than women (about 55% of the players are men). There are all sorts of gaming and gambling choices available to Californians: About 40 Indian casinos, 125 card rooms, several horse racing tracks and all of Nevada gaming just across the border. The Lottery, at the standard price of $1 per ticket, is the cheapest form of gaming, and the beneficiary of the Lottery is education.
Question: Why does the State sanction gambling?
The Lottery is a creation of the people of California. In 1984, the people overwhelmingly passed the California Lottery Act, creating the Lottery Commission and a California Lottery. Lottery sales began in 1985. It's what the people wanted, and it's what they got. Poll after poll since 1984 reveals that Californians like and support their Lottery. The California Lottery is strictly controlled and carefully managed. It's meant to be entertainment. The dream of becoming an instant millionaire is what people get when they buy their $1 lottery ticket. And, with a little luck, they may find a winner.
For more information on the California Lottery, you can visit the Lottery web pages at www.calottery.com .