The Los Angeles Times from Los Angeles, California • 3

I Cos Angeles Slimes Sunday, January 19, 1986Part 1 3 California's Lottery Striking It Rich Per-Capita Ticket Sales Outstrip Those of Other States' Games s. it 2 i The California Lottery sold 800 million "instant game" scratch-off tickets at 1 each between Oct. 6 and the end of the year. In million of tickets START OF START Of mf SAME I SAME 1 CTl 21 28 know of "any place on the North American continent any place anywhere" that has sold lion worth in a year. But Batch, a veteran of the business who has managed lotteries in New Jersey, Illinois and Delaware during his career, said that based on California's special advantages and current sales, "it's reasonable to believe that they can achieve it." A lot of people agree.

"California has always been a place where the risk takers are at home," said William Roy, an asso- ciate professor of sociology at UCLA. "It goes back to the Gold Rush. People came here to get rich quick. They still do. "Take the movie industry.

It's full of people who are gambling, taking a chance, even though they risk getting nothing. It's the thrill of the risk, like climbing a dangerous mountain." Keeping Pace With Trends Like the movie industry, Roy said, other ventures that succeed in California have to keep pace with the latest trends. "Right now, the lottery is 'in Roy said. "It's something people are talking about with each other. People like to be "Take the lottery ads.

They're like Pepsi ads slick, quick and telling you to 'be with They make the lottery very attractive." Michalko is proud of the advertising, which tends toward the "soft-sell" approach, emphasizing the "fun" of gambling. Brad Forna-ciari, an account executive for Needham Harper Worldwide, the Please see LOTTERY, Page 29 By ERIC ALNIC, Times Staff Writer By any measure, the California Lottery has been a phenomenal success, selling more than $800 million in tickets in the first three months or about $30.30 worth for every man, woman and child in the state. A sociologist attributes it to traditions Californians inherited from the '49ers and from the movie industry trying to get rich quick, and trying whatever is trendy. The people running the operation here credit careful planning, good management and the state's diverse cultural heritage. Lottery officials in other states say that it was pretty much a case of being in the right place at the right time.

Outstrips Predictions But whatever the reasons, the California Lottery has outstripped even the most optimistic predictions, doing better, according to its director, Mark Michalko, "than any other lottery in the world." As far as anyone knows, he is right even when you allow for the fact that California is the largest state in the nation. By way of comparison, New York the nation's second-most-populous state had sales of only $196.5 million during its first three months, in 1976. That came to about $11.55 for each resident of that state, about one-third the per-capita rate in California. Each state that followed New York into the lottery business did better on a per-capita basis, with Arizona coming in at $15.92, the state of Washington at about $24.40 MARTHA HARTNETT Loa Angela Times 3, tO t7 24 31 OCT. Weak beginning 7 14 MOV.

and Colorado at about $25.28. And when California the latest to join the parade went on-line in October, it capitalized on what one industry observer calls a "lottery fever" that had been sweeping the nation. Gov. George Deukmejian never a fan of the lottery predicted at the time that sales here during the first full year of operation would total about $900 million, a figure that should be reached by the end of this month, less than a third of the way through that year. Michalko countered with his own estimate at the time of "about $1 billion, maybe $1.2 billion." But looking at the figures piling up on his desk last week, Michalko changed his prediction.

"Historically, after the first few months, there's more of a WITH ALAN CRANSTON 5 12 19 25 DEC. DAVID PUCKETT Loa Angelea Times drop-off," Michalko said. "I'm sure there will be one it's just a question of when. But even so, we should hit $1.5 billion by June 30, and top $2 billion by the em the first year." Michalko's $2-billion estimate is" a staggering figure more than the sales of 81 of the top 100 publicly held companies headquartered in California in 1984, as much or more than the budgeted general fund expenditures of 21 states in fiscal 1985-86. No other state has ever sold more than worth of lottery tickets in a year.

Ralph Batch, a director of the Maryland-based Public Gaming Research Institute, a private organization that does consulting and advisory work for state lotteries and other gambling interests, said he does not Across America" with celebrities As he embarks on his bid for a fourth term in the U.S. Senate, the California Democrat offers his views on the role of government, his fears for the Republic and his thoughts on a longtime political foe President Reagan. By KEITH LOVE, Times PoiittcaZ Writer Two years ago at this time, he was tramping through the snows of Iowa as a presidential candidate. His hair was dyed orange, his skin was artificially tanned both done to make him look younger and his rhetoric was decidedly liberal. But the other day, California Sen.

Alan Cranston was focused on another political goal winning a fourth term to the Senate in November. Looking relaxed and more natural with his fringe of white hair and pale skin, the 71 -year-old Democrat talked about his view of government, his fears for the Republic and about President Reagan, an old Cranston foe whose popularity is soaring. The interview found Cranston sticking to his guns, after appearing to moderate his liberalism and his criticism of Reagan a year ago, when analysts were discussing the increasing strength of conservatives. The conversation took place over lunch in Los Angeles. Cranston, a devotee of exercise and low-fat meals, had his usual tomato juice and barely cooked fish, quizzing the waiter closely on the preparation of his food.

An obscure public official for many years until he ran for President, Cranston seemed delighted at being recognized as he walked to his table. An elderly woman whispered loudly to her companion, "It's Alan Cranston." The reservation was not in Cranston's name, but the waiter had seen that bald head somewhere and he fussed endlessly "But of course, senator," "As you wish, senator." Question: If the Gramm-Rudman Act which you voted against is not the way to attack the federal deficit, what is? Cranston: Well, first of all, now that Gramm-Rudman is the law of the land I want to try to help make it work. But it is going to Residents of Taft join hands along Center Street to sing "Hands All of Taft's a Stage and Proud of It Townfolk Turn Out to Help Film Video for Anti-Poverty Fund-Raiser By STEVEN R. CHURM, Times Staff Writer make drastic cuts in programs that everybody needs in law enforcement, air safety, education. There is another way out that is not as painful.

It is to make some cuts in domestic spending but be more restrained in military spending and to pick up new revenues and that doesn't mean an increase in income taxes. The easiest way is to have tax reform close some loopholes and make sure there is a minimum tax so that no person or corporation can get away with paying no taxes at all. And also, we shouldn't cut tax rates, as the current tax reform bill would do. I have talked to a number of well-to-do Californians, and repeatedly they have said to me that they would love to have their tax rates cut but they don't need it and the country can't afford it. Is the country more secure today after five years of a Republican presidency? In an economic sense it is probably less secure because of the accumulated debt we have.

Militari PAUL HORSE to raise funds for nation's poor. by attempting a coast-to-coast human chain over Memorial Day weekend. An estimated 6 to 10 million people will be required for the line stretching from Los Angeles to New York, and at $10 a head for the privilege of participating, sponsors hope to raise up to $100 million. To attract some of that help and tap the pocketbooks of America Kragen and award-winning video producer Bob Giraldi picked Taft to film a video that will be shown for the first time before next Sunday's Super Bowl football game. "It is the spark to light the fuse," said Fred Drooz, the national director of Hands Across America.

"We came to Taft because it is Middle America. America is not L. A. or New York. It's 100 miles inland from the East and West coasts." More accurately, Taft is about 110 miles north of Los Angeles, and it's been called a lot of things.

Middle America is among the nicest. Cultural Landmarks "This town has been called everything from hick, tiny and backward and a few things you can't even print," said Jerry Gibby, 40, who was born and raised here and is now the town's historian. "But when they say we're middle class, it's right. People here care about one another. And this town is movin' up.

We got a McDonald's last year and this spring we're gonna get the first four-way signal in town." Gibby was one of 1,200 locals issued special tickets to star in Please see TAFT, Page 34 'What Reaganomics has done to the economy is what is Sen. Alan Cranston AFT, Calif. A cadre of Hollywood heroes and several thousand residents of this small oil town lined Center Street Saturday and held hands in what was billed as a show of solidarity for America's poor and hungry. But the only hand Carolyn Smith wanted to hold belonged to Kenny Rogers, the handsome, silver-haired country singer who is a favorite among the farmers and oil men of the San Joaquin Valley's west side. When Smith spotted Rogers, she shrieked like a schoolgirl half her age.

"I need some oxygen, call 911," hollered Smith, a local paramedic. Seconds later, she bolted toward Rogers, who was talking with a group of celebrities, and grabbed his hand. "I'll never wash this hand again," she said, mission accomplished. And so Holly wood met Taft. Not Entirely New This was not the first time that the lights, cameras and titillating action of the film industry had touched Taft.

But when super-agent Ken Kragen and company, representing the fund-raising organization Hands Across America, descended on this town of 6,100 Saturday, about a third of the population turned out to get in on the act. Kragen, manager of such rock stars as Rogers and Lionel Richie, was the mastermind of last year's USA for Africa campaign, with its recording "We Are the World." The song led to a multimillion-dollar outpouring for African famine victims. Now, Kragen has set his sights on delivering relief to America's poor and hungry ly, it may be somewhat more secure, but not to a vast degree. The fact that we are talking to the Soviets again is a plus, I think. My view of them has not changed: I have never trusted them and I know that they are adventuristic and that they deny fundamental rights to their people, but I believe that they share with us a desire to avoid nuclear war.

Has Ronald Reagan been a good President? He has been good in his capacity to lead in the direction he wants to lead. Is that a direction in which you want to be led? Laughter Not exactly! What Reaganomics has done to the economy is what is wrong. But many people feel the economy is doing just fine. People feel it is in good shape, yes, but they are also very uneasy because of the deficit. And there are some people who are Please see CRANSTON, Page 34 I ivW Life! Lot Angeles Times Kenny Rogers, with son Christopher, and Juice Newton took part..