2018 snapshot

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Message from the Director

More than $2.6 billion in prizes and $725 million to state and local programs, that's the bottom line for FY 2018. With an eye towards sustainable revenue growth, Lottery also began laying the foundation for modernizing the games we offer, the way we offer them and the way we operate. 

Whether upgrading the system we use to manage Video Lottery, exploring a return to sports betting, launching our first mobile application, or reimagining the way we run the agency, Lottery strove to improve our player experience, strengthen connections with our community and strike the appropriate balance between profits and public good. While Lottery continues to focus on profits to fund state and local programs, our commitment to responsible gaming and support for problem gambling treatment is stronger than ever, woven into the core of the Oregon Lottery brand. But don't simply take my word for it. In Dec. 2018, Lottery earned the highest level of certification for our responsible gaming framework from the World Lottery Association (WLA).

Oregonians have counted on the Lottery to deliver funds to programs they care about for more than three decades, and the work accomplished in FY 2018 will help ensure continued delivery of that Lottery promise for decades to come.

—Barry Pack
Director, Oregon Lottery

It Starts with Our Mission

Our Brand Promise

Oregonians count on us to provide funding to programs they care about. We collaborate, we listen and we partner. Our gaming products are fair, legal, promote gaming responsibly and we proactively support help and care for Oregonians with gambling issues.

Honesty's Our Policy

Honesty and integrity are the foundation of our business dealings and our work with each other. It's our nature to do what we say and say what we do.

Together We're Better

We are stronger and more effective together. By collaborating and partnering with government, community, industry and each other, our relationships help us all meet our financial, community and business goals. We respect our partners and each other and believe that diversity and inclusion make us stronger, better, smarter. When we can trust each other, we can accomplish anything.

When Players Play, Oregon Wins

The Lottery is the state's second largest source of discretionary funding after personal income tax, contributing more than $12 billion to state and local programs since 1985. Of every dollar played in FY 2018, 97 cents ended up in winners' pockets, and in the budgets of programs Oregonians care about.

2018 Impact

Creating Revenue For Oregon

In FY 2018, Lottery games raised more than $725 million for state and local programs important to Oregonians. "Together, we do good things," is more than a tagline: Lottery dollars make a difference in every corner of Oregon.

Lottery Dollars Do Good Things for Oregon

Oregon voters decide what Lottery dollars fund; by direct vote, or through their elected representatives.  With Lottery dollars, jobs are created, schools are supported, parks are maintained, watersheds are improved, veterans are supported, more 5th and 6th graders attend Outdoor School, and Oregonians with gambling issues receive treatment.

Balancing Profits and People

Awareness of Free Treatment

The Lottery runs an integrated, ongoing marketing campaign promoting the availability of free, confidential, professional help that works. This includes multi-cultural broadcast and digital advertising, search engine marketing, website content, collateral, billboards and other out-of-home marketing.

Meet Kitty, she is recovering from a gambling disorder

Contacting the Helpline

The Lottery promotes the Helpline number, 1.877.MyLimit, in all responsible and problem gambling advertising and collateral. Additionally, 1.877.MyLimit is featured on Lottery games and equipment including stickers on Video LotterySM terminals and printed information on ticket stock and “how to play” brochures.

Find out what happens when you call the helpline

Good Things Spotlight

Delivering economic development dollars

Since 1986 nearly $3 billion in Lottery revenue has been dedicated to creating jobs in every corner of the state across a wide range of industries. Take for example, Benny's Donuts in Corvallis.

Benny Augeri was attending college in Corvallis when he realized there were only a few donut shops. In 2016, with $2,000 he had from a student loan, he took his family recipes and started a donut delivery service. He set up a website for what he calls a "one-click" donuts.

"A friend had a commercial kitchen and I made 2,400 donuts," he said. "I thought it would last a week, but I had to shut down in the first hour of being open. I thought the website was broken."
So Benny did what any good entrepreneur would, he got more product, and made more of his family's delicious donuts.

"The third day I sold out in 9 minutes and 54 seconds. That's when I realized I had a business," he said.
When Benny wanted to open a store front last year, Business Oregon assisted him with a loan made possible with Lottery dollars. With a band of friends, Benny built his storefront as a do-it-yourself project using reclaimed wood from all over the state.

"The Lottery money really helped me open the store, and it's becoming a destination in Corvallis," he said. "We are always trying new products and sourcing local ingredients."

Meacham Creek, an Oregon creek set free

A valuable partnership between the Oregon Watershed Enhancement Board and the Confederated Tribes of the Umatilla Reservation recently brought Meacham Creek back to where it started and "first-foods" back to the local tribes of the Columbia River Gorge.

Lottery dollars turn on the tap

When residents of Lebanon wash their dishes, get a glass of water, or run a hot, steaming bath, the water that flows to homes across the community is from a treatment plant that was built in 1946.
So Lebanon is in the process of building a new plant that is going to cost approximately $35 million. Oregon Lottery funding through Business Oregon's Special Public Works Fund is helping to pay for approximately $11 million of the total cost of the project.

With the last major update to the plant in 1981, the plant can filter and distribute approximately 3.75 million gallons a day. It has no backup systems, so each time work needs to be done on the aging plant, it has be taken offline. In addition, with a 5-percent population growth between 2010 and 2015 according to the US Census, the city of Lebanon realized that they were going to need a more reliable, plant with more water capacity.

"A reliable supply of water is a vital need for any community," said Gary Marks, Lebanon City Manager. "Lebanon's existing water treatment plant, built in 1946, is not as reliable as it once was and does not provide the capacity to support anticipated growth.  The new treatment plant, which will begin construction this spring, will give Lebanon the supply of clean water it will need to meet the demands of its growing community."

The new plant will increase the water capacity to 6 million gallons per day and have a new water intake from the South Santiam River. The city is also repairing water and sewer lines around the city that are reaching the end of life.

Extending the outdoor pool season in Southern Oregon

Imagine an outdoor swimming pool that you can swim in all year round. You can do that at the Ella Redkey Municipal Pool in Klamath Falls—renovated last year with support from Lottery dollars.

"The pool is very important to us," said Joe Wall, Management Assistant to the City Manager. "The Ella Redkey Pool is the community's only public pool and allows for active, low-impact exercise for all age groups."

The Ella Redkey Pool is a 360,000-gallon, 75-foot-long public pool with 11 swim lanes and a spiral-tube slide. Warmed by geothermal heat, it's one of the most interesting and toasty pools in the state. And, thanks in part to funding from the Oregon Lottery, the pool has a cover that will keep the temperature of the water up during the winter months. This allows the pool to stay open longer and serve more people.

Top Ten Winners in FY 2018

Donald Devore

Troutdale
$54,747 Keno 8-Spot

Donald Devore of Troutdale is an unlikely Keno winner, when you consider the series of events that led to his $54,747.20 Keno 8-spot win.

Devore attended a birthday party for a friend who was turning 60. The only problem was that the friend sent out the wrong location. Devore, who meets regularly with the friend, showed up at their normal hangout, Chu's Eatery in Portland.

"He had sent the wrong location out, so there were only four of us at the location he wanted," Devore said. "We all decided to start playing Keno."

When Devore filled out his play slip for his Keno 8-spot game, he accidentally only selected six numbers. "So I had to do another play slip. I used our birthdays. I like 56 and 57 Chevys, so I used those numbers, and then two other numbers at random," he said. "When the numbers came up, I thought I had won $4,700, which was the 8-spot bonus. Then I realized I had played for $2, so I had doubled my base prize to $50,000!," he said. "It was ridiculous."

Now Devore is talking about taking his friends to Bora Bora, however, Kelly, Devore's wife, said she would like new carpeting. The couple from Troutdale own a marketing company.

Joe Martin

Prineville
$30,000 Scratch-it

Nothing makes an impression on a date like winning $30,000 playing an Oregon Lottery Scratch-it.

Joe Martin of Prineville was taking his girlfriend, Dani, on a camping trip, when the two stopped for groceries, and Joe picked up a $3 Scratch-it.

The couple then drove to the campsite and played the Scratch-its.

"She was taking a picture of a butterfly near a campfire and I was sitting there and scratched the ticket," he said. "When I saw the three, I thought I had won my money back, then I saw a bunch of zeroes. When I saw the comma I said 'NO WAY!' We both looked at it and knew it was a winner."

Martin said for the rest of the day all he could say was "Dude" and giggle uncontrollably.

The couple purchased the ticket at the Main Station Express on Main Street in Prineville.

He said he was going to use the prize to put into his glass art business.

Spencer Hardman and Zak Sowards

Gresham $1,912 and $5,100
Video Lottery

Spencer Hardman and Zak Sowards deserved to have a little fun at the end of last week.

The two men, who work for Alpha Environmental, spent the week replacing a 1,000-gallon septic system. "Yeah, it was cold and rainy and we were standing in the muck all week," Hardman said. "So on Friday we decided to go out."

While they were out, they swung by a Dotty's in Beaverton and played Wild Witch on Video Lottery. "When I won $1,912 I thought the weekend was turning around," Sowards said. "We were having a lot of fun and it was even better when we won."

So Saturday, after seeing a movie with his fiancé, Hardman decided to try Wild Witch again.

"I put in $25 and within three spins I'd won $5,100!" Hardman said. "I didn't mean to show Zak up, but I guess with our week at work, we deserved to have some good luck."

The two men claimed their prizes together at the Oregon Lottery's Wilsonville Claim Center. They said they still couldn't believe their luck. Hardman had just bought his fiancé a ring and now doesn't have to worry about the cost. Sowards said he hadn't made plans with what to do with his winnings.

"Overall it was a great end to the week," Hardman said.

Marisa Luebs

Sweet Home
$100,000 Scratch-it

If the first wedding anniversary is called the paper anniversary, then Marisa and Charles from Sweet Home know how to celebrate—they have 100,000 pieces of green paper thanks to an Oregon Lottery Scratch-it.

The couple were bored one night and decided to purchase some Scratch-its at the US Mini Market in Sweet Home. The first ticket they played, in the parking lot, was a $100,000 winner.

The couple said they never purchase Scratch-its more than $5, but they were feeling adventurous and decided to try the $10 Scratch-its.

"We were sitting in the car and I just kept scratching it, I couldn't believe it," Marisa said. "At some point I ran out of stuff to scratch on the ticket and we took it inside. The machine made noise and the lady at the store almost didn't know what was going on. She did tell us the sign the ticket immediately."

They are putting the money in the bank and plan on using some of it for a down payment on a house, a better car and to have some savings.

"We want to make sure we save a lot of it to have a good future," she said.

How We Did It

A Variety of Games

We offer a variety of games for everyone, including jackpot games, scratch-its, Keno and Video Lottery, so there's something for everyone—over 18!

Working with our Business Partners

Retailers are the primary outlet for Oregon Lottery games – selling more than $1 billion in FY 2018.

Retailers receive a commission for selling games. Lottery supports sales by providing the games themselves, Video Lottery terminals, and service and marketing support.

A Shared Commitment to our Players:
6,356 retailer employees completed responsible gaming training in 2017-2018.

Oregon Lottery Profile of Retailers (for Fiscal Year 2018)

FY18 COUNT % OF
RETAILERS
REVENUE % OF
REVENUE
AVG. REVENUE
PER RETAILER
COMMISSIONS AVG. COMM.
PER RETAILER
All Retailers 3,961 100% $1,322.9M 100% $334K $249.7M $63.1K
PRODUCT
Retailers with
Video Lottery
2,230 56% $1,052.8M 80% $472.1K $225.5M $101.1K
Retailers with
Traditional
Lottery Only
1,731 44% $270.1M 20% $156K $24.2M $14K
INDUSTRY
Convenience Stores 1,285 32% $163.9M 12% $127.5K $14.1M $11K
Restaurants 908 23% $355.9M 27% $391.9K $79.3M $87.3K
Bars and Taverns 802 20% $380.6M 29% $474.6K $81.8M $102K
Other Industries 365 9% $78M 6% $213.7K $15.8M $43.4K
Grocery Stores 315 8% $83.2M 6% $264.2K $8M $25.3K
Limited Menu/Café 286 7% $261.3M 20% $913.7K $50.8M $177.6K
REGION
Portland-Vancouver-
Hillsboro
1,735 43.8% $684.6M 51.8% $394.6K $128.5M $74.1K
Salem 395 10.0% $129.6M 9.8% $328K $25.3M $64.1K
Eugene-Springfield 353 8.9% $107.3M 8.1% $304.1K $20.1M $57K
Medford-Grants Pass 312 7.9% $93.1M 7% $298.3K $17.3M $55.5K
Albany-Corvallis-
Lebanon
180 4.5% $50.9M 3.8% $282.9K $9.6M $53.1K
Bend-Prineville 166 4.2% $56.2M 4.2% $338.5K $10.6M $64K
Roseburg 134 3.4% $29.1M 2.2% $216.8K $5.3M $39.4K
Pendleton-Hermiston 91 2.3% $23.8M 1.8% $261.7K $4.5M $49.4K
Klamath Falls 79 2.0% $18.6M 1.4% $234.8K $3.5M $44.4K
Astoria 73 1.8% $20.2M 1.5% $276.2K $4.1M $56.5K
Coos Bay 63 1.6% $13.5M 1.0% $213.8K $2.4M $38.1K
Ontario 45 1.1% $17.9M 1.4% $398K $35M $78.2K
The Dalles 33 0.8% $10.9M 0.8% $330.1K $2M $61.8K
La Grande 27 0.7% $6.3M 0.5% $233K $1.2M $44.4K
Brookings 25 0.6% $4.4M 0.3% $177.2K $777.8K $31.1K
Hood River 24 0.6% $7.8M 0.6% $325.6K $1.5M $63K
Remaining Oregon
Counties
226 5.7% $48.8M 3.7% $216K $9.4M $41.7K
INDEPENDENT/CHAIN
Independent Retailers 2,895 73% $926M 70% $319.9K $188.6M $65.2K
Chain Retailers 1,066 27% $396.9M 30% $372.3K $61.1M $57.3K
TENURE
Average Tenure 12.5 years            

Using Lottery Dollars to Improve Business

Josh Hector has a plan when it comes to his 80-year-old bar and restaurant, The Barge Inn in Newport, and the Oregon Lottery is a big part of that plan.

"I took ownership about five or six years ago and we really started working on the place," Hector said. "We've changed it from a local bar to someplace where tourists feel like they can come and visit."

He has worked to improve the atmosphere, menu and entertainment, in part, thanks to the Oregon Lottery and the revenue he has seen from Lottery games.

"We plan to do a project each year with the revenue we make from the Lottery," Hector said. "We see the games as an important part of the entertainment we provide."

Projects have included better TVs, more Keno monitors and new chairs for the Video Lottery area.

Hector said total food sales are up about 30-percent overall and that Lottery games were the "third leg of the stool" when it comes to revenues. He also said that 90-percent of his Lottery sales were Video Lottery; however, he expanded his Lottery offerings to increase sales.

"About 50-percent of Video Lottery players also play Keno, so we added that," Hector noted. "Then we also added a limited number of Scratch-its for our coffee groups that come in and chat. I really believe that if you make it fun and comfortable, people will want to spend time at your business. It's a win-win-win. A win for the Lottery, a win for the businesses and a win for the customer."

Paying it Forward with Selling Bonus

By providing access to Lottery games, retailers play a critical role in delivering needed funds to state and local programs. Sometimes they go above in beyond, like Jimmie Musselwhite in Forest Grove.

When Musselwhite, who owns the Mini Mart in Forest Grove, learned he sold a $1 million Powerball ticket he first thought, "I am sure we are going to sell a bunch of Powerball tickets tomorrow." Musselwhite continued, "Selling a million dollar ticket, and having the jackpot still be so high, I think people will come here to get their tickets."

His next thought, what to do with the $10,000 bonus check he received from the Oregon Lottery for selling the winning ticket. With 14 years of serving the Forest Grove community, the decision was easy, bonuses to his staff and a donation to a local homeless shelter.

Looking to the Future

Meeting Market Demands

In response to customer expectations, Lottery is working to expand both the types of games we offer, and the way we offer them—allowing us to continue delivering funding to an increasing number of state beneficiaries.

For more than three decades, the Oregon Lottery has raised crucial funding for state and local programs by selling Jackpot, Scratch-it, Keno and Video Lottery games through a network of retailers. While the retailers remain a critical component, Lottery must expand and improve its digital presence to meet current and future customer demands.

In addition, national developments in sports betting regulation have opened the door for the return of sports betting in Oregon—providing a new type of Lottery game that has the potential to attract new players.

Keeping the Promise Into the Future

Oregonians count on us to provide funding
to state programs they care about.