08:08 AM PDT on Wednesday, September 3, 2003

By PETER PRENGAMAN, Associated Press Writer

The Oregon Legislature's budget for the next two years includes an extra $67 million in revenue from the Oregon Lottery, one of the state's biggest money makers.

But lawmakers who adjourned last week gave the Lottery little direction on how to raise the money.

(AP File Photo)

With thousands of problem gamblers in Oregon, however, no one is in a hurry to take credit for advancing the state's dependence on the Lottery.

"No, we haven't gotten the nod" to put in video slots, said Lottery Director Brenda Rocklin. "But given the fact that the Legislature went home without that discussion, it will be left to the Lottery Commission."

Oregon depends on profits from lottery games to pay large chunks of such state services as public schools. In the fiscal year ending June 30, the Lottery sent $387 million to state coffers, mostly from video poker, said spokesman Lou Torres.

Although the Lottery has the authority to institute new games, the commissioners are appointed by the governor. That means any major policy decision, like adding video slots, must at least have tacit approval.

Mary Ellen Glynn, a spokeswoman for Kulongoski, said the governor hasn't decided whether he'll approve the video slots.

Jeff Marotta, manager of the Problem Gambling Services branch of Oregon's Department of Human Services, says the video slots would add to the 75,000 Oregonians -- or about 2 percent of the state's residents -- who have a gambling problem.

During the last weeks of the session, Kulongoski pressed lawmakers to pass a law defining how the extra $67 million would be raised, but they didn't.

Lawmakers did pass one law to allow bar and tavern owners to put in a sixth video poker machine, up from the current ceiling of five. The law also allows race tracks to go from five to 10 of the machines.

Rocklin estimates that increasing the number of machines will raise another $14 million, leaving $53 million to be raised.

She said the Lottery will tap new games, like Monday Night Score Board, in which players bet on how many points will be scored during quarters of Monday Night Football games. At least for the first year, the game won't include any other football games.

Rocklin said the commission will also look at cutting administrative costs and lowering the percentage of proceeds that tavern and bar owners are allowed to keep, from the current level of 31 percent, she said.

Legislative attempts to lower commissions have met strong resistance from bar and tavern owners, who have a contract that sets their rates until 2004.

Other changes aside, the Lottery is expected to look seriously at video slots.

"To get that amount of money, obviously line games is the highest volume solution," said Bill Perry from the Oregon Restaurant Association. "You are not going to get $67 million from cutting costs and commissions."

Rocklin said before the commission makes any decisions, it will hold community forums to see what people think about video slots.