The lottery: will business win?

• Position: Indiana state lottery - Briefs

Although nearly everyone expects the lottery referendum in November to pass, Indiana business is not likely to benefit from the vote, say three Indiana University researchers.

IU professors John L. Mikesell, C. Kurt Zorn and Larry DeBoer studied the economic impact of the lottery. They concluded, DeBoer says, that "economic development for the state from the introduction of a lottery would probably be negligible."

Lottery supporters say approximately $140 million leaves Indiana every year to buy tickets for lotteries in Illinois, Michigan and Ohio. If Indiana hosted its own lottery, proponents argue, that money would support Indiana retail lottery outlets instead.

According to State Sen. John D. Bushemi, a Gary Democrat, studies conducted in lottery states demonstrate increased general sales activity in ticket outlets. He also describes a lottery "spin-off effect," by which lottery ticket sales commissions paid to outlets lead to their hiring more employees.

"The citizens of our state support a lottery," Bushemi says. "The General Assembly has a responsibility to take action."

Zorn disagees. He maintains that...