Technology/Services

State Budget Issues Taking Toll on Retailers

Lottery standoff hurts cigarettes, gasoline, other c-store sales

SPRINGFIELD, Ill. -- Since announcing in August that prizes over $600 would not be paid immediately due to state budget problems, the Illinois lottery has seen a significant decrease in ticket sales. But lottery ticket sales aren't the only thing suffering, according to a report in the Madison Record.

illinois lottery

William Fleischli, executive vice president of Illinois Petroleum Marketers Association/Illinois Association of Convenience Stores, said the lottery issue adds to challenges already at play for small businesses close to state borders.

Small businesses like gas stations, convenience stores and smoke shops in Illinois, particularly those in communities close to state borders that rely heavily on revenue from lottery sales, are feeling the pinch, he told the newspaper.

In addition to reduced revenue from lottery tickets, local businesses are also reporting loss in revenue from the sale of cigarettes, gasoline and other items lottery players typically purchase when they buy their tickets.

“Border communities in Illinois face a marketing challenge with or without the lottery sales,” said Fleischli. “We have the highest taxes on gasoline and the highest taxes on cigarettes in the surrounding states. So there is already an incentive to go across the border. So this [budget impasse] doesn't help.”

Meanwhile, lottery officials are trying to reassure lottery ticket winners that they will get paid.

"Our winners will be paid," lottery superintendent B.R. Lane told WLS Chicago. "Once we get the go ahead from a legal perspective, they will be paid."

Governor Bruce Rauner and Democratic leaders who control the state legislature have not been able to reach a budget agreement for the fiscal year that began on July 1.

Legislators won't re-authorize payment of lottery winnings until January at the earliest, officials have said.

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