New state lottery game looks likely

Tuesday, February 28, 2006 posted 10:42 AM EST

The odds are good that the North Dakota Lottery will add at least one more game to boost ticket sales that have already topped $40 million since March 2004.

Chuck Keller, director of the North Dakota Lottery, told a legislative committee that the lottery plans on adding one or two more games to the four already available by 2007.

"We need to keep the players consistently attracted to playing the lottery's games," Keller said.

Keller presented a report on the lottery to the Judicial Process Committee on Monday in the Capitol.

Rep. Kim Koppelman, R-West Fargo, said constituents are asking him why the state needs more lottery games because some people were under the impression that the state would only offer one game.

"Is this really what we bargained for in North Dakota?" Koppelman said. "'When is enough enough?' is the question I'm being asked."

The lottery officially began on March 25, 2004, with Powerball, a popular multistate lottery. Hot Lotto was added in June 2004, followed by Wild Card 2 in September 2004 and 2by2 on Feb. 2 of this year.

Keller said the lottery is enjoying broad public support, but it will be a challenge to increase sales each year. Keller said having a variety of games with a range of odds helps players stay interested.

The new game, 2by2, has proved to be a success in its first month of operation. The game, which has drawings six days a week, offers better odds than other games, but has a jackpot of only $20,000.

Keller said 2by2 already has had sales of almost $500,000 since it began.

None of the legislators questioned the integrity of the lottery, but Sen. Stan Lyson, R-Williston, questioned if lottery subscriptions result in people having problems with gambling.

Players get lottery subscriptions by purchasing tickets that are good for 26, 52 or 104 drawings.

"Is that really being sensitive to problem gambling?" Lyson asked.

So far, the lottery has sold 527 subscriptions, worth $45,760, but Keller said the lottery is on track to meet its goal of 2,000 subscriptions.

Rep. Kathy Hawken, R-Fargo, said problem gambling isn't as prevalent with the lottery as it is with other forms of gambling.

Hawken said you rarely see a person "up to their knees" in lottery tickets, like you do with pull tabs or other forms of gambling.

Of the total annual lottery ticket sales, about 1 percent ($400,000) goes to a fund to prevent compulsive gambling, 29 percent goes into the state's general fund, 47 percent to prizes and the remainder for retailer commissions and other expenses.

Keller said projected sales for the 2005-07 biennium are estimated to be $38.5 million, with about $10 million of that amount being deposited into the state's general fund.

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