Iowa Lottery brings $1.2 billion in state revenue over 25-year history

Iowans have taken that old Iowa Lottery jingle: “You can't win if you don't play” to heart.

For the past 25 years, we've been playing, a dollar at a time, for the most part, to rack up $4.8 billion in lottery sales even though more than 20 percent of Iowans have never played since Iowa Lottery was introduced in 1985.

As in any gaming, the house always wins. In this case, that's the Statehouse, which has realized $1.2 billion in revenue from Iowa Lottery games.

Players have cashed in, too, capturing $2.6 billion in prizes ranging from $1 to the $200.8 million Powerball jackpot a Fort Dodge couple won in October 2006.

“It'll always be a game of chance, but there's a guaranteed payout,” says lottery President and CEO Terry Rich, who says, “the best part of my job is writing the checks.”

As much as the silver anniversary is about the successes of the past 25 years, Rich is focused on the future to ensure lottery games continue to be a source of revenue supporting education, economic development, environmental projects, veterans services and the array of state services. Lottery proceeds have contributed $15.7 million to the Iowa Gambling Treatment Fund even though, as Rich points out, less than 6 percent of those who call the 1-800-BETSOFF hot line are having problems due to with lottery games.

The lottery future won't be all scratch-off and pull tabs. Rich anticipates electronic games as well as lottery games delivered to smart phones.

Players, especially younger, tech-savvy players, “aren't doing much on paper,” he says. “They're on smart phones, they use debit cards and they're connected on places like Facebook and Twitter. That's where businesses need to go, too, if they want to be successful.”

There's already movement toward electronic lottery games, Rich says. An electronic lottery game tested in Canada drew such interest on its first day that the server crashed.

He foresees games involving groups of people who pool their money to play together via social media, such as Facebook and Twitter. Rich doesn't rule out the possibility that the state lottery will be involved in sports betting and online poker someday. Both are illegal today, but he points out there is discussion at the congressional level about legalizing, regulating and taxing both forms of gaming.

“It won't be around for years,” Rich says about online poker and sports betting.

As for the electronic games, Rich expects a state will introduce one within 12 months and others will follow over the next few years.

“Surely, we won't be the first,” he says. “We want to make sure the pubic and elected officials are aware of the future so they don't get caught flat-footed.”

Rich sees no end to the public's appetite for lotteries.

“Everybody likes to dream, to take a chance, if it doesn't cost too much” he says.

The beauty of the Iowa Lottery, he adds, is that even those who don't play are winners.

“It's optional revenue unlike a tax that everyone has to pay,” he says. “But even if they don't play, they benefit.”

To the tune of nearly $61 million in state revenue last year. Most of it $1 at a time.

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