July 25, 2013 – The nine-member board of the Wyoming Lottery Wednesday authorized the search for a $1 million line of credit – “enough money to get us started,” said board member Ross Newman.
The Billings Gazette reported that the board will begin sending out loan applications to Wyoming banks Thursday.
The money will help the fledgling Lottery take big steps in getting off the ground by its target launch date of January 2014.
Among their largest expenses will be a salary for the yet-to-be hired CEO. The search for leadership began late last week, after board members agreed on essential qualities and posted a job description on industry website lotteryinsider.com.
The loan, which is likely to be secured quickly, will also help the Lottery move into office space in Cheyenne and find a vendor to produce and distribute games.
Vice Chairman Barry Sims told the Gazette that banks would have until Aug. 9 to reply to loan requests, and the money will come sometime before Aug. 30.
Board members have said that Wyoming banks already expressed interest in lending start-up funding.
“Most banks were receptive to the idea because you don’t see lotteries fail,” board member Mark Macy said.
The board expects to bring in about $20 million in profits in the first year of operation, and acknowledge they’ll be in debt once they get off the ground.
But not for long – many lotteries are able to pay off their start-up loans within the first few weeks of operation. Florida’s lottery managed to settle their debt in under three weeks, and Tennessee’s was back in the black in just 10 days.