North Dakotans' acceptance of a state lottery was slow in coming, but the lotto's chief sponsor hopes it will be launched quickly.
Rep. Andrew Maragos, R-Minot, will push for a two-thirds majority in passing legislation authorizing the lottery so it will take effect immediately.
"We want to get this done as quickly as possible," Maragos said. Voters approved the lottery by a majority of almost two-thirds in Tuesday's election, after rejecting three earlier ballot proposals dating back to 1986.
But Attorney General Wayne Stenehjem cautioned people to be patient -- it will be at least several months before lottery tickets will go on sale in North Dakota, given the many details legislators must address in establishing and managing the game.
One reason to act quickly is the projected state deficit. Forecasters predict a $67 million shortfall in the next biennium. Maragos estimates the lottery will generate $8 million to $15 million per biennium.
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But Maragos thinks it would be unwise to factor lottery proceeds in the next budget, since there is no accurate way to predict revenues.
Half of lottery proceeds will go to prizes, with another 20 percent anticipated for administration and promotion. That would leave 30 percent for state coffers, Maragos said.
"These are assumptions now," he said.
Legislators and lobbyists will be lining up with ideas about how to spend lottery revenues. Maragos' preference would be to use the money for education, rural development and local property tax relief.
"Our direst needs are still in education," he said.
In addition, Maragos will propose that a small portion be set aside to counsel people who develop gambling addictions. But he maintains that lottery games are not as addictive of other forms of gambling with instant results.
Maragos will advocate that North Dakota join the Multi-State Lottery Association, which administers the Powerball game, played in 21 states, including North Dakota's three bordering states.
"That would keep everybody at home," Maragos said. "There'd be no reason for North Dakotans to go to Minnesota, South Dakota, Montana."
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The state will invite vendors to submit bids for the equipment that will be needed to administer the lottery. Maragos envisions that every business with a valid state sales tax license would be eligible to sell lottery tickets.
"I don't know what that upfront cost will be," Maragos said. "We won't know anything until we get these companies to bid against each other."
Maragos hopes bid proposals will be ready about the time the Legislature convenes in January. He has directed the Legislative Council to draft legislation.
"It's just a starting document," Maragos said. "It will be vetted fully by the legislative process."
Readers can reach Forum reporter Patrick Springer at (701) 241-5522
