Lottery plan threatens sales in bordering states

James Hannah

Thursday, Dec. 6, 2001 | 10:09 a.m.

RICHMOND, Ind. -- When the Powerball lottery jackpot approaches $50 million or so, it gets a little crazy at Big Red Wine and Spirits.

Cars choke the store's 10-space parking lot as security guards direct traffic streaming off of U.S. 40, about a mile from the Ohio-Indiana state lines. Lines of customers seeking Powerball tickets snake out the door. Waits can be up to an hour.

"It can be pretty wild," owner Tim O'Leary said.

O'Leary estimates that 75 percent of his Powerball business comes from Ohio. "We can draw 75 to 100 miles," he said.

He and other lottery agents in surrounding states worry about losing customers if Ohio decides to join a multistate lottery to help plug a $1.5 billion budget deficit.

But on the Ohio side, lottery ticket sellers were ready to grab the additional business.

Ohio Gov. Bob Taft and the Senate support joining a multistate lottery, in addition to offering Ohio's Lottery, but the House was reluctant.

Taft estimates that Ohio's participation would generate an additional $41 million a year, beginning in 2002.

The richest lottery prize in U.S. history was $363 million in the Big Game won in May 2000. Powerball had a $295.7 million jackpot. By contrast, the biggest Ohio Lottery jackpot was $54 million.

A big Powerball jackpot is "a second Christmas" because he also benefits from increased liquor sales, O'Leary said. He earns only up to 7 cents profit on a lottery ticket.

He estimated he would lose 75 percent of his $500,000-a-year sales of Powerball tickets and some of his liquor sales, of which Ohioans account for 35 percent.

Possibilities for Ohio would include Powerball, the 21-state lottery that includes Indiana, Kentucky and West Virginia, and the Big Game, a seven-state lottery that includes Michigan.

"I personally would vote for Ohio to come in," said Jim Kipp, acting commissioner of the Michigan Lottery. "The benefit would probably be just a larger overall player pool, which would probably make the jackpots bigger."

Kipp said some retailers on the Michigan border might lose some sales, but that most of the state's sales outlets would benefit.

Michigan began offering the Big Game in 1996. Last year, it produced $152 million in sales, or 9.4 percent of Michigan's total lottery sales.

The Big Game also includes Georgia, Illinois, Maryland, Massachusetts, New Jersey and Virginia.

Those participating in Powerball are Indiana, Kentucky, West Virginia, Delaware, Connecticut, Rhode Island, New Hampshire, Louisiana, Missouri, Iowa, Wisconsin, Minnesota, South Dakota, Nebraska, Kansas, New Mexico, Arizona, Colorado, Montana, Idaho, Oregon and the District of Columbia.

Powerball, which has been played in Indiana since 1989, accounts for about 20 percent of the state's lottery sales.

Jack Ross, commissioner of the Hoosier Lottery, said Ohio's entry into Powerball would make jackpots go up faster and increase lottery sales for all Powerball states.

But he said Indiana is in a nice position because three of its four border states don't have Powerball.

"From an Indiana perspective, we do quite well in our border counties during high jackpot runs," Ross said. "We like those Ohio folks coming to Indiana. I'd have to take a close look at the pros and cons."

Ross said entry into Powerball must pass two votes by member states. On one ballot, each state has one vote. On the second ballot, the more Powerball sales a state has, the more votes it gets.

O'Leary's view was echoed by Gloria Hussey, manager of nearby Low Bob's Discount Tobacco.

Hussey said 70 percent of her Powerball ticket business is from Ohio. When the Powerball jackpot is high, she said, people wait 20 minutes just to get a parking space.

Just across the Ohio line, it's a different story. Lottery outlets in the village of New Paris watch potential customers drive by on their way to Richmond.

"This used to be Ohio's biggest lottery seller before Indiana got the lottery," said James Dale, owner of a Sunoco station. "We had people from Indianapolis. They would line up."

Dale said selling Powerball would be good for his business. Ohioans would no longer have to go to Indiana for tickets, and he might get additional customers from Indiana who would come to buy both Powerball and Ohio Lottery tickets, he said.

However, Dale said he has not lobbied state officials for Powerball because he doesn't feel the additional business at his store is worth the trouble.

Down the street at Marathon Garage Mini-Mart, Jan Snyder was buying Ohio lottery tickets. Snyder, 38, of nearby Lynn, Ind., said he would like to see Ohio join Powerball.

"It would be more money to win," Snyder said. "That's what it's all about."

Some lottery sellers on the Ohio border don't care if Ohio joins a multistate lottery.

Tom Butscha sells Powerball tickets at One Stop Liquors in Bellevue, Ky., just across the Ohio River from Cincinnati.

"We get so much local business," Butscha said. "Right now, the people who buy Powerball tickets are the people that come in every day."

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