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Embattled Arkansas Lottery director Passailaigue resigns after series of missteps


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Reported by: David Goins
Updated: 9/19/2011 5:50 pm Published: 9/19/2011 10:59 am
LITTLE ROCK, AR - A major shake-up at the top of the Arkansas Scholarship Lottery as embattled lottery director Ernie Passailaigue turned in his resignation letter Monday. The two paragraph resignation letter says he leaves October 7th and thanks the commission for the opportunity.

After 90 minutes behind closed doors the Arkansas Lottery Commission on Monday accepted the resignation letter of director Ernie Passailaigue.

"He gave no other reason than he just appreciated the opportunity to be here," commission chairwoman Diane Lamberth says.

Passailaigue is responsible for the quickest startup of any lottery in U.S. history in September 2009 with nearly $200 million in proceeds funding 30,000 college scholarships so far.

But the young lottery has been plagued by serious management missteps too, including an audit with a number of mistakes in 2010. And in August, the lottery revealed it owed the Internal Revenue Service approximately $100,000 after miscalculating a tax payment. The mistake led to the resignation of the lottery’s chief fiscal officer in August.

"On the whole you've got to give him credit for the speed and efficiency with which it was started but on the other hand there was a lot of controversy around the day to day operations," governor Mike Beebe says.

Passailaigue came to Arkansas from leading the lottery in his native South Carolina and earns $330,480 annually. Beebe says he is not concerned with where the next director hails from but told reporters Monday he would like to see the next lotto leader earn less.

Lottery Commissioner Steve Faris said today the commission wants someone with a different vision than Passailaigue.

"Whoever we select, I'd like to see a director that has a good idea of where they want it to go, they can pick on things that have been done here in a positive way and move forward,” Faris says. “I don't want to dwell on the past, the future is what is important to me."

That future no longer includes the man credited with starting the lottery

The lottery commission named Julie Baldridge as interim director. She's the public relations director for the lottery now but is not a candidate for the full-time job. Her salary of $107,000 will not be increased as a result of the new title.

Passailaigue started June 1, 2009. He does not work under contract, so he will not receive any buyout. In his resignation letter he says the October 7th date will allow the commission to select a new director and “get us past the launch of our new game, Arkansas 50/50 Raffle on October 1.”
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Ms Ellie - 9/19/2011 11:16 PM
0 Votes
I will be happy to apply for the job. I will accept 75K in salary, full benefits (insurance, 401K, etc.) & I'll pay for my spouse's insurance from my salary. I'll show up for work every day I should, I'll make sure the other staff are doing their job, I'll accept a full review of my actions at any time, my schedule will be posted on the web site & I'll post on YouTube all meetings I have, public & private so that there is no doubt as to what is said to who. I will be happy to drive my own vehicle to work... no state car for me. I can go to work at once & will not ask for a raise for two years. Any questions?

sparrowhawk60 - 9/19/2011 9:57 PM
0 Votes
Now what did people expect when you legalize gambling? Vultures feeding off gullible people's money. Did Arkansan's really think all that much was going to go for scholarships? I'm sure he's not the only one making a mistake. Mistake??? What a joke. Taking the fall for the rest of the vultures lining their pockets off gambling. Gambling is just what it is no matter how you do it. It just sad that it even got started. This is the tip of the iceberg as to what really happens to most of the money. Legalizing it was the biggest mistake.

brite - 9/19/2011 8:41 PM
0 Votes
The sad thing is that you Arkansaw hics just let Beebe cram this up your throats, hope he used a little vasoline

sjn12 - 9/19/2011 7:20 PM
1 Vote
Can't blame him - Everyone has picked at him and his salary from the get go- and they started way too many games- not necessary- to many fingers in the pie I think, he came with experience and Arkansans resented paying an outsider- hope you revamp the school lottery as well to proven students and so much per class regardless where you take them if it's a school that gives you credits or a degree or certificate-As well 100,000 doesn't sound like much of a mistake considering the proceeds they deal with- Sounds like you got to watch your back and "hope" for cooperation

howiseeit - 9/19/2011 2:52 PM
1 Vote
now why does this not surprise me ..... somebody been after him for a loooooooooong time

brite - 9/19/2011 12:40 PM
2 Votes
Way to go El-Beebe, now you need to take that same set of gonads and go clean house at UAMS, where Dr. Rahn "The Con Man" got in your pocket for 8 MILLION dollars for that worthless consulting firm to make little or no changes up there at-- "UAMS - where Mexicans have babies"

jluher - 9/19/2011 12:23 PM
4 Votes
First - when you are the one in charge yes you are the one held ultimately accountable. Second - overpaid, period! Third - too many put into place in jobs where they had questionable qualifications and/or accountability to. Fourth - the Lottery Commission isn't much better in its qualifications or ability to do their job. Lotteries aren't brain surgery, the first US lottery was Puerto Rico in 1934, the first lottery in the continental US was NH in 1964. Now 43 states run lotteries, it doesn't take much to go learn from any one of them, especially the ones in existence for a long period on how to run it! SC started their lottery in 2002 and AR hires the guy who ran it for a HUGE increase in salary as if he were THE GURU of lotteries - get real, gambling, the second oldest career choice probably will continue without Passailaigue in charge!

emergdoc98 - 9/19/2011 12:02 PM
1 Vote
Maybe the IRS should check him for personal income tax evasion too.

FJM347 - 9/19/2011 11:55 AM
1 Vote
Yes, this does come as a surprise. I dont think that he was responsible for most of the things that had come up during his job as Lottery Director. He was under alot of preasure for things that happened due to other employees. From the board to the govenor? At times he was blamed for the misteaks of others. As far as some of the deals that were stuck during his employ as director? Business is business and everyone is in business to make money It wouldnt surprise me if he already had another job lined up to go to. I wish him the best of luck

RGilbert - 9/19/2011 11:52 AM
4 Votes
+++Gov. Mike Beebe called the mistake "inexcusable" +++ Interesting to note The First Tobacco Tax Buzzard Of Arkansas (Mike Beebe) never calls any of his or his mafia (the lawmakers) mistakes "inexcusable". I wonder why.
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