"More College Athletic Departments Partner With State Lotteries"

From Athletic Business


Review by Justin Thorpe in KIN 435 (section 1)

The article I reviewed was entitled More College AD’s Partner with State Lottery. This article went into detail explaining how the state lottery has certain sponsorships with NCAA football teams and is expanding their reach across the country. For example, the article talks about Oregon State and the University of Oregon and how they are somewhat involved with the lottery. Oregon State chose to allow the lottery to use their trademarks in the lottery’s promotion of the “Civil War” and allows the lottery to set up displays and advertisements on only two game days; whereas the University of Oregon did not chose to lend their trademark to the lottery yet allows them to promote the lottery at all of their home games for the season. By teaming up with the lottery both Oregon State and the University of Oregon will gain roughly $60,000. Since 1990, the University of Oregon has received around $11.3 million and Oregon State has received around $10.9 million dollars in lottery proceeds. The article also talks about hypocrisy among some of the colleges in that they are willing to receive money from the lottery proceeds but do not want to allow the lottery to use any of their trademarks that may come from their football program or school.

Some college athletic departments think that there is no harm in teaming up with the lottery and allowing them to use their trademarks whereas others think that they may either not be ready to take their program to that level or do not want to be promoted in that fashion. Although the lottery can provide some benefits to colleges and/or universities such as money and promotion, not all are willing participants of using the lottery as a way to portray their image.

My take on College programs being sponsored by their state lottery is it SHOULD NOT be used at all. The NCAA is strict on ever other subject that involves players gambling, receiving extra benefits, or getting paid for play, college teams should in no way be affiliated with a corporation that promotes gambling. There is no way that the NCAA should allow college football rivalries like Oregon and Oregon state be used to promote gambling on a scratch ticket. I was intrigued by this quote in the article; the lottery is an advertiser, and the sports networks that carry the games reach an audience all across the state," says Mary Neubauer, the Iowa Lottery's vice president for external relations, adding that lottery proceeds benefit the Iowa Veterans Trust Fund and the state's general fund, which benefits education at every level. "So advertising obviously is a big component of it, but the opportunity to spread the word about good things in our state is another, and that's what we're doing with this current promotion." I feel as if that quote is a cop out for the state lottery because in actuality all they want to do is sell lotto tickets with the college programs on them so that they can increase their revenue. That’s my take on College Athletics being involved with state lotteries.

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Review by Daniel Marchesani in KIN 435 (section 2)

I’ve never seen a state university partnering up with the state lottery, and after reading this article I think it is a great idea. I find that it is beneficial to both organizations because the schools are getting money and advertising out of it and the lotto is getting free advertising. For example over the past 20 years Oregon has received more than 11.3 million dollars and Oregon State has received 10.9 million dollars from the state lottery. Along with all that money, they have gotten ton of free advertising having its rival football game, the “civil war” written on thousands of lottery tickets. In return the lottery is allowed to advertise at the team’s home games. This is a great marketing strategy for both organizations (the lottery and whichever university they are with at the time) because they are mutually helping one another out to benefit themselves while doing know harm to anyone. "The lottery is an advertiser, and the sports networks that carry the games reach an audience all across the state," says Mary Neubauer, the Iowa Lottery's vice president for external relations. The lottery proceeds benefit the veterans in Iowa through a trust fund and go towards the states general fund which is money that goes to the education department. Mary goes on to say, "So advertising obviously is a big component of it, but the opportunity to spread the word about good things in our state is another, and that's what we're doing with this current promotion."

While others and I feel positively about this, some are against the fact that the lottery and Universities are working together. Michael O’Hara a longtime psychology professor at Iowa stated, “Gambling has been a big problem in sports, particularly college sports, and I would consider it a public-health issue.” He is strongly against the fact that State Universities are starting to associate themselves with such an issue. He believes it may end up hurting the Universities in the long run rather than continue to make it money.

Universities and the lottery working together seem to be working for both sides, while it is a great promoter for both organizations it is also a great money maker for both the school and the lottery.

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Review by Tommi Nissinen in KIN 435 (section 1)

The article discusses the recent trend of college athletic departments partnering up with state lotteries in an attempt to raise more money for their programs. While some universities are seizing the opportunity with little hesitation, others don’t feel as comfortable about getting involved. Since many schools have been accepting indirect lottery proceeds from their states for years, it seems rather hypocritical not to get involved with the latest trend.

According to the article, one of the latest examples of the phenomenon is the Civil War scratch-it lottery ticket, which is based on the rivalry game played every year between two Oregon powerhouses, Oregon State and the University of Oregon. While the lottery ticket clearly displays the trademarks of Oregon State, the University of Oregon chose not to lend its trademarks to the state lottery. Hypocritical, some might say, especially after receiving more than $ 10.9 million from the Oregon state lottery since 1990.

Chris Bjork, an Oregon IMG Sports Marketing senior account executive, helped draft a contract which allows the lottery a promotional presence at all seven home games of the season, but doesn’t allow the school trademarks to be used in the Civil War scratch-it ticket. “Hey, you know what? We don't feel as comfortable yet. We understand that the lottery does provide the university with some significant dollars, but we're just not there yet."

Despite of denying the use of the school trademarks on the actual lottery ticket, allowing state lottery to promote during the home games brings in $ 60,000 from the state lottery, which is the very same amount that is received by Oregon State for allowing using their trademark in the scratch-it. So basically both universities are getting the same amount of money from the same sponsor. The only difference is the way they choose to represent their brand image. Oregon State is fine with having their trademarks on a lottery ticket, whereas Oregon is fine with having the state lottery promote on their campus.

Despite of their different approaches to marketing and strengthening their brand image, there is one aspect of the story both schools seem to have very few problems agreeing with.

And that is exactly 60,000 dollars.