State’s dependence on gambling revenue deepens

Friday, Dec. 3, 2004 | 9:35 a.m.

SALEM, Ore. -- After it first was created by voters in 1984, the Oregon Lottery was a simple scratch-off ticket operation that generated about $30 million a year for the state.

The lottery has expanded over the years to one that now produces $400 million a year, mainly as a result of moves by the Legislature to draw more money from the lottery, including the 1992 introduction of the highly lucrative video poker game.

Now, Gov. Ted Kulongoski has ordered a further expansion of the lottery -- and the state's dependence on gambling revenue -- by adding slot machine-type games to the lottery's video poker terminals.

The governor estimates the new games will yield an additional $120 million in lottery profit in the 2005-2007 budget period to maintain state police patrols at current strengths.

The move dismays critics who say the state should move no further into new gambling ventures as a way to raise money to plug holes in the state budget.

"It's easy revenue, but there are social consequences," said Bob Baker of Ecumenical Ministries of Oregon. "This new line of video games will attract new gamblers, and for some it will lead to problems."