I am still trying to find an economic theory that promotes how cutting your sales force will sustain or increase revenues. The proposal our industry presented brings much-needed stability to business, the Lottery and Oregon's schools. The approach does not change the blended rate paid to retailers, nor change the basic rates in the system. I believe it will increase transfers to the State in Fiscal Year 2011 by more than $50 million. I feel strongly that this is a simple solution for the Lottery, and I hope it is their final decision. The main goal for the Lottery is to “maximize revenue to the state.” You can certainly get bogged down with a discussion on retailer compensation percentages, but you can not make the case that reducing your sales force during this challenging economy gains you “more revenue.”
We are all looking for more revenue, and the Lottery Commission clearly has a way to produce more by combining their “two option” system into a blended tier system. Fixing the current rate structure is a solution to maximize revenue, and no one has to get “punished” in doing so. Cutting commissions and machines in the field is the real gamble and the odds are against you!