A trade group representing roughly 85% of Arkansas’ convenience stores announced its support Tuesday for a proposed state-run lottery, The Morning News in Arkansas reported.
Lt. Gov. Bill Halter’s proposed constitutional amendment, which has been certified for the Nov. 4 general election ballot, could create a lottery to fund college scholarships. Analysts estimate the lottery could create $100 million for college scholarships.
“Our members are losing thousands of Arkansas customers and millions in sales to lottery retailers in the border states,” said Ann Hines, executive vice president of the Arkansas Oil Marketers Association, in an announcement on the association’s Web site.“We’re losing business and the state is losing tax revenue.”
The top-selling lottery retailers in Missouri, Oklahoma and Texas are located near the Arkansas border.
The association represents about 3,000 of the roughly 3,500 convenience stores in Arkansas. Retailers make about 30% more in gross receipts from lottery customers than non-lottery customers, according to NACS.
Lottery retailers typically earn a commission on lottery ticket sales ranging from 5 to 8%.