lllinois could be in for more bad luck if no budget gets passed by the end of the day on Friday.
Greg Smith, acting director of the Illinois Lottery, told the House Revenue and Finance Committee on Wednesday that the state's ability to participate in Powerball and Mega Millions games will be discontinued if Illinois has no authority to pay.
The Powerball drawing on Wednesday would be the last sanctioned one, barring legislative action.
The issue, Smith said, is not exactly a lack of funds but the removal of the state's authority to pay prizes. The money, he said, would get tied up in limbo, with no ability to cut a check to a winner.
Smith said sales of Powerball have already dropped 10 percent after news that the state’s ability to pay prizes could be in jeopardy.
“The players of these games react by not playing the lottery,” Smith said.
Retail partners, he said, would be hurt by a trend toward cross-border purchases.
“They incur a loss of revenue,” Smith said.
Citing a prior payment suspension from October to December 2015, Smith said lottery workers have tried to avoid similar situations. Smith said he was approached by Powerball and Mega-millions gaming groups the week of June 14 and put on notice that the state’s ability to participate was tenuous.
If a budget is in place, game sales could be continued pretty easily, he said.
“If we are granted the authorization to pay prizes by July 1, then we can re-enact sales,” Smith said.
Rep. Greg Harris (R-Chicago) suggested that a standalone lottery authorization bill could solve the problem, and Smith agreed.
“We don't need a budget, do we?” Harris said, citing the ability to simply pass a bill allowing the state comptroller to release funds to winners. “This problem goes away overnight.”
Regardless, Harris lamented what he called “the height of political stupidity”: playing fast and loose with a program that’s set up to deliver revenue to the state.
“Lottery is the goose that lays golden eggs, and we’re screwing around with it,” Harris said.
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