This is to inform you that I have no opposition to lottery sales along Wisconsin Avenue and M Street in Georgetown, based on the criteria established in ANC 2E Resolution dated April 1, 1987 (see attached). As you know, ANC 2E voted not to object to lottery sales in Georgetown subject to certain conditions specified in their resolution. I would appreciate the Lottery Board and staff working closely with the Georgetown community to implement this program in the best interests of Georgetown residents and businesses.

Sincerely,

John A. Wilson
Councilmember
Ward Two

ATTACHMENT A

Georgetown
Lottery
Language

LOTTERY AND CHARITABLE GAMES ENTERPRISE FUND

For the Lottery and Charitable Games Enterprise Fund established by the District of Columbia Appropriation Act for fiscal year 1982, approved December 4, 1981 (95 Stat. 1174, 1175; Public Law 97-91, as amended), for the purpose of implementing the Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Code, secs. 2-2501 et seq. and 22-1516 et seq.), $5,458,000, to be derived from non-Federal District of Columbia revenues: Provided, That the District of Columbia shall identify the sources of funding for this appropriation title from its own locally-generated revenues: Provided further, That no revenues from Federal sources shall be used to support the operations or activities of the Lottery and Charitable Games Control Board: Provided further, That the advertising, sale, operation, or playing of the lotteries, raffles, bingos, or other games authorized by D.C. Law 3-172 is prohibited (1) on the Federal enclave; (2) in any public building that is adjacent to the Federal enclave, is controlled by the Shipstead-Luce Act as amended by 53 Stat. 1144, and is designated as a Category I or Category II Landmark by the District of Columbia's Inventory of Historic Sites, prepared pursuant to the National Historic Preservation Act of 1966; and (3) in the Old Georgetown Historic District; except that:

(a) such prohibition shall not apply to the advertising sale, operation, or playing of lotteries on M Street Northwest from Rock Creek west to Key Bridge, and on Wisconsin Avenue Northwest from M Street Northwest north to the boundary of the Old Georgetown Historic District, except in any building designated as a Category I or Category II Landmark by the District of Columbia's Inventory of Historic Sites, prepared pursuant to the National Historic Preservation Act of 1966;

(b) there is hereby authorized a three-year demonstration project to study the economic and other effects of the advertising, sale, operation and playing of lottery tickets within buildings that are located within the Federal enclave by handicapped vendors operating under provision of the Randolph-Sheppard Act as amended, except that no such vending location may be licensed for purposes of

Georgetown
Lottery
Language

ATTACHMENT B

RESOLUTION

WHEREAS, ANC 2E has no opposition, in principal to the extension of Lottery sales into the Georgetown area on Wisconsin Avenue and M Streets only, under the following specific conditions:

Signage will be appropriate to this historic
district and will be subject to review by the
Commission of Fine Arts

Lottery sales will be restricted in the first three years of selling in Georgetown to no more than 12 licensees, unless this number is increased by a vote of ANC 2E

Any potential licensee to be found to abide by
all laws and regulations of the District of
Columbia as well as those of the Federal govern-

ment.

The D.C. Lottery and Charitable Games Board will
seek the advice of the Business and Professional
Association of Georgetown in selection of
potential licensees.

Potential licensee shall appear before a
meeting of ANC 2E for the purpose of community
review, prior to the issuance of his license.

Hours of ticket sales to be limited in Georgetown
to end no later than 11 p.m.

In view of the above-referenced conditions and the expressed willingness of the D.C. Lottery and Charitable Games Board to work with the Georgetown community in establishing the least destructive introduction of

lottery sales here, ANC 2E offers no objection, at this time, to the extension of lottery sales into this community.

Passed: April 1, 1987

4-2-0

Ms. LEWIS. We feel this vote of confidence is a clear indication that the legislative restrictions no longer reflect the sentiment and the attitude of this vital segment of our city. The effect of this action reaffirms the support of the Mayor and City Council for community determination and economic participation.

An increase of 50 agents for the Federal enclave and Georgetown is expected initially to increase annual sales 5 to 6 percent or approximately $5 million.

To continue this exciting and positive performance, we request your continued assistance and cooperation in accomplishing the coordinated decisions and needs of the citizens of the District. We are, of course, available to work with your staff and Subcommittee members to realize this objective.

HIRING OF NEW EXECUTIVE DIRECTOR

In closing, Mr. Chairman, and members of the Subcommittee, I think it important to note for the record our concern with the few but unfortunate management problems experienced in the early years of our agency's development.

One very important step we have taken in strengthening our organization and its management and monitoring capabilities has been the hiring of an experienced executive to bring on as our Di

rector.

I would like to ask Mr. Bernard Edwards to make a few remarks for the record.

OPENING REMARKS OF NEW EXECUTIVE DIRECTOR

Mr. DIXON. Mr. Edwards, we are pleased to have you with us today.

Mr. EDWARDS. Thank you, Mr. Chairman, and members of the Committee. I am the brand-new Executive Director of the D.C. Lottery and Charitable Games Control Board and, for the record, a copy of my testimony has been made available to this committee as well as a copy of my biographical sketch.

You may have noted in that biographical sketch the experience referred to by Chairperson Lewis. I am recently from Pennsylvania, with four years' experience there as the Deputy Executive Director in charge of day-to-day operations of a $1.3 billion lottery. In this sketch, you may have noticed I have authored articles on lottery management as well as having been a National Conference Workshop leader and expert on lotteries. So it is from that viewpoint I have quite a bit of familiarity with the D.C. Lottery and Charitable Games Control Board. And it being one of the younger members in the industry, it has already attained a reputation of being a very solidly run organization.

In this very short time, the D.C. Lottery has introduced innovative methods in electronic fund transfers and cash management and cash mobilization, and has developed an aggressive approach to marketing and game design as well as established itself-and now ourselves as a leader in per capita sales, just to name a few of the things that have been done.

I am very much excited to join the present organization that has established such a solid base. Indeed, I place my future with the

D.C. Lottery and Charitable Games Control Board. I look forward to participating in the long-term growth and development of the D.C. Lottery.

Just with that brief statement, I would like to say thank you for the opportunity to make that statement, and say that we are now available for questions of the Committee.

Mr. DIXON. Thank you very much, Mr. Edwards.

LANGUAGE CHANGE IN THE APPROPRIATIONS ACT

Ms. Lewis, I notice that the Board is asking again this year for language changes which means some modification of the law. Ms. LEWIS. Yes.

Mr. DIXON. You may note from the history of this legislation that it came about through a coalition put together by this Committee. As politicians, I know we all understand that after you put together a compromise there are efforts made subsequently to break or chip away at that compromise. The first step is to put your foot in the door by compromising, and then worry about chipping away at it.

I am not expressing my personal attitude toward any of these language changes, but I am expressing the Committee's concern.

REDUCTION IN PROJECTED REVENUES

I notice that your projected revenues have dropped off somewhat. Your total revenue projections are down about $9 million from $146.4 million in fiscal 1987 to $137.5 million in fiscal 1988, and in fiscal 1987 you expect to turn over to the District Treasury $47.6 million as compared to $45.1 million in FY 1988.

Is that a correct statement?

Ms. LEWIS. The projected figure for 1988 is the $48 million, and for the 1987, I think that is correct; yes. I hope our Controller will correct me if I misspeak.

Mr. DIXON. Let me read this. I notice from last year's justifications you expected to transfer $47,634,000 to the District's Treasury; and in fiscal year 1988 justifications, you are planning to transfer $45,143,000, a reduction of $2.5 million.

Ms. LEWIS. In 1987.

Mr. DIXON. That is correct. So it is $2.5 million less in 1988?
Ms. LEWIS. Yes.

Mr. DIXON. And your projections for total revenues for the fiscal year 1988 are down $8.9 million?

Ms. LEWIS. We start that process, as you are well aware so far in advance of the actual time of delivery we oftentimes find ourselves adjusting figures. One of the concerns we have that I expressed in the statement, is shrinking markets. We do not want nor will be flooding the area of the city that have agents with new agents because we think there is a limit the city ought to carry. Therefore, we find it essential, if we are going to show continued growth, even closer to the rate we have shown in the last few years, to establish new markets. That is the sentiment beyond the real push to open up new markets.

Mr. DIXON. I, for one, would imagine that-and Mr. Edwards would have a better grasp of this-that when a lottery or some