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House Bill 2007

 

Protecting Neighborhoods from Casino Lottery Parlors

Establishes a definition of "casino" for lottery retailers

House Bill 2007

Problem:

When voters approved a change to the Oregon Constitution to permit lottery games, they were not voting to support the creation of casinos in their own neighborhoods. In fact, the Constitution only allows for casinos on tribal land. However, today, some lottery retailers operate as de-facto casinos because they are able to receive more than half of their net income from lottery profits while keeping their reported lottery sales under 50% of their gross revenue. The Oregon Lottery Commission currently monitors retailers through a process of defining a "casino" in Oregon Administrative Rules (OAR 177-040-0061). There is no statutory definition of "casino" for lottery retailers. Since the rule only speaks to gross revenue, some retailers have been able to concentrate most of their business on lottery sales with impunity. The proliferation of bars and "delis" solely catering to lottery users has affected community livability and has become a public safety issue.

Solution:

House Bill 2007 defines a "casino" as an establishment with more than 50% of its net profit derived from lottery sales. Having such a rule in statute will provide clear and improved guidance to the Oregon Lottery Commission to regulate the activities of lottery retailers. The new definition will:

 Assist the state in honoring the wishes of the voters.

 Allow for better identification of lottery use in the state by appropriately clarifying the income streams to establishments which utilize the Oregon lottery for a sizeable portion of their business.

 Provide neighboring retailers and residents the protection of not residing near bars and "delis" whose primary business is the lottery and selling inexpensive liquor and cigarettes.

For more information, please contact Michelle Rogelstad in Speaker Tina Kotek’s

office at 503-986-1444 or rep.tinakotek@state.or.us.