Deceptive Advertising in the North Carolina Education Lottery

By: Representative Paul Stam

Speaker Pro Tem

March 10, 2016

Table of Contents:

“No Advertising may be Misleading, Deceptive…”

“Fools will play the lottery and now if we can attract more fools to play the lottery and they choose that, I’m not sticking a gun to their head.”NCGS § 18C-114 Powers and duties of the Commission

8 Little Rules the House had to Break to Pass a Lottery

Deception in the NC Education Lottery

8 pages previously presented to members of the Lottery Oversight Committee on February 11, 2016, featuring Powerball and its advertisements

Memo by the Fiscal Research Division addressing the Powerball jackpot of January 2016.

Memorandum from Rep. Stam on October 24, 2014, “New Lottery Ad is Extremely Misleading: “All or Nothing.”

Exhibits of the “All or Nothing” logo and advertisement

“What is N.C. after? Bucks, bucks, bucks!” Charlotte Observer, May 27, 2011

Advertisement revealing the top prize of $200,000 with the odds of winning at 1 in 3.9.

Letter to Senators Brown, Harrington, Hunt and B. Jackson on July 14, 2014 concerning SB 744/Lottery Advertising Component

Specifically responding to statements from the transcript of the Senate hearing on June 12, 2014.

Transcript of the Senate Appropriations Committee Meeting on the Lottery on June 12, 2014

Lottery Studies

Selling Hope State Lotteries in America, by Charles Clotfelter & Philip Cook

Do Lotteries Hurt the Poor? Well, Yes and No By: Charles Clotfelter

Transcription of the National Gambling Impact Study Commission Meeting, March 19, 1999.

Duke Professors’ contact information

Honest Lottery Act

House Bill 156 (Second Edition) and Fiscal Note

Internal Memoranda

Memorandum from Dylan Finch (Legislative Intern) to Representative Paul Stam on December 3, 2013 concerning “An examination of Lottery Funding and Sales for Six Counties in North Carolina.”

Memorandum from Brian Miller (Legislative Intern) to Representative Paul Stam on February 24, 2016 “Lottery Corruption” concerning Eddie Tipton.

Memorandum from Brian Miller (Legislative Intern) to Representative Paul Stam on February 24, 2016 concerning “NC Lottery: A Case of Subtle but Sure Injustice”- picking a winner before paying for the ticket.

Attached Report: Investigation by NCEL

Click HERE to see a condensed version of the handout.