Arkansas Lottery Could Dampen Profits in Surrounding States

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Arkansas Lottery Could Dampen Profits in Surrounding States

08/05/2008
LITTLE ROCK, Ark. -- Missouri, Oklahoma and Texas lottery sales could lessen if Arkansas voters approve a proposed constitutional amendment allowing a state lottery.

For bordering retailers, the proposed law could significantly impact sales, the Arkansas Democrat-Gazette reported. If passed, the Oklahoma's lottery expects to lose $10 million to $12 million in ticket sales a year, said Rollo Redburn, a spokesman for the Oklahoma Lottery Commission. Redburn told the paper that Freddy's One Stop convenience store and gas station near Roland, Okla., is the No. 1 ticket seller among 2,000 Oklahoma retailers selling tickets. Freddy's sales were $1.314 million in a year, including $969,712 in Powerball tickets.

In addition, Oklahoma's top six lottery retailers are within only a few miles of Arkansas. According to the Missouri Lottery, a rough estimate of potential losses in the first year equals $25 million to $30 million. While the estimate is based on Powerball sales, retailers estimate losses in gas and merchandise sales.

The Arkansas Democrat-Gazette reported that Mr. T's convenience store, located seven miles from Paragould, is the top lottery ticket seller among Missouri retailers. As of the calendar year ending June 30, it sold $5.6 million. Like Oklahoma, Missouri's top six lottery ticket retailers also are near Arkansas.

On the western border, Texarkana, Texas, has the No. 1 lottery retailer in Texas, the Stateline CITGO, which in 2007 sold $3.625 million in lottery tickets.