Pennsylvania Lottery Fears Slot Machines

While the rest of the state cheers the close arrival of Pennsylvania slot machines and slots parlors, one establishment is anxious for completely different reasons.  The Pennsylvania Lottery has great concern over how slot machine gambling will affect their profits and customer base.  If the relationship between the lottery and gambling in the states of Michigan and Illinois are any indicator of problems to arise, their concerns are well founded. 

Senior citizens are certainly concerned about the fate of the state Lottery.  Not only does the Pennsylvania Lottery revenue sponsor senior programs like subsidized prescriptions, it is about to extended to helping pay for property tax and rent rebates for impoverished senior citizens and long-term nursing care.

Governor Ed Renell’s top budget adviser, Michael Masch said, “I don’t think we’re in any trouble.”  Masch has shown confidence in the preparatory maneuvers made by Pennsylvanian officials before the big change.  The last four years have seen a more than $1 billion increase in annual lottery revenue due to the introduction of new games with better odds and establishing more retail locations. 

It is clear that the Rendell administration had enough foresight to begin finding solutions when the 2004 law approving slot machines was passed.  The law possessed a clause mandating that the 14 approved slots parlors sell lottery tickets. 

State officials seem confident in the Pennsylvania lottery although budget projections indicate that in the next four years, lottery sales will not exceed 1 percent.  This is most likely due to the introduction of slot machines at the end of this year.  Still, even Gregory C. Fajt, the state’s top revenue official, insists that the Pennsylvania Lottery is not as vulnerable to casino interference as other state lotteries.  Fajt does not think slot machine players and lottery players are a part of the same customer base.  That, unfortunately, is not the story beginning told from evidence in Delaware and Iowa. 

Milton Leontiades sees an obvious connection between the two forms of gambling.  Leontiades is Rutgers University School of Business in Camden’s former dean.  His rationalization is that, “You spend your money and hope to get more than you put in.  As a generalization, I would think it tickles the same nerve ending.

The general trend across the nations is that the sale of state lottery games have climbed.  However, upon the introduction of slot machines or casino gaming, sales have either planed out or decreased. 

Many states have saved their lotteries with exciting new ad campaigns.  In Pennsylvania, each of the past four years have witnessed a revenue increase of no less than 10%.  The run of success can be attributed to at least three factors: a 20% expansion of their retailer ranks, the appearance of their new pitchman Gus the Groundhog, and several brand new online games with better odds. 

Lottery director Ed Manhlman stated confidently, “We certainly believe that we’re going to be in great shape in the year to come and beyond.”

Masch does have a plan of action, should things not go as well as planned.  In an effort to keep double digit increases in important programs, such as nursing care and drug prescriptions for low-income seniors, Pennsylvania will have to squash programs like transportation for the elderly. 

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