Lottery chief wants to thwart legal, illegal competitors

Friday, Jan. 28, 2005 | 9:33 a.m.

DES MOINES, Iowa -- The state's lottery is losing money to legal video games and illegal lotteries run by taverns and convenience stores, the state's top lottery official says.

The competition has cost taxpayers about $12 million so far, Iowa Lottery Authority Chief Executive Ed Stanek told lawmakers Wednesday.

He said Iowa's new video pull-tab machines, made available statewide last year, have not generated as much as previously expected because of competition from video games that pay out prizes.

Another problem is that imposter lottery tickets, being sold under the guise of coupons, have increased in sales, he said.

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