LITTLE ROCK — The Arkansas Lottery Commission on Monday accepted the resignation of Director Ernie Passailaigue, who oversaw the creation of the lottery but also dealt with a number of problems.
Passailaigue, who was hired in June 2009 from the South Carolina lottery, survived multiple previous attempts to dismiss him after leading the startup of the agency, which sold its first ticket in September 2009.
In a brief letter of resignation, Passailaigue didn't give a reason for stepping down effective Oct. 7. He did say he wanted to give enough time to pick a successor and to roll out Arkansas 50/50, a new game set to debut Oct. 1.
"It has been both a pleasure and a privilege to serve the Commission as the director since the start up of the United States newest lottery," Passailaigue wrote. "Thank you and the Commission for all the courtesies that have been extended to me over the last two and a quarter years."
The commission discussed the resignation during an hour-and-a-half executive session and later, after emerging from the private meeting, voted unanimously to accept it. Julie Baldridge, currently the Director, Public Affairs and Legislative Relations, will serve as interim director. She will not be a candidate for the permanent job.
Dianne Lamberth, chairman of the lottery commission, thanked Passailaigue for his work in creating what she called the "most successful lottery startup" ever. She said he faced no pressure of being fired and wasn't asked to resign.
Passailaigue had been at the helm during a number of problems at the lottery, including issues over its accounting practices and policies on staff travel and reimbursements. Most recently, the lottery was assessed nearly $100,000 in penalties by the Internal Revenue Service, which said the agency was late in depositing taxes on prizes.
Lamberth said his legacy shouldn't reflect the problems. She said Passailaigue should be commended for starting the agency, choosing to leave a successful job leading the South Carolina lottery "to come help Arkansas students."
"I think he needs to be remembered fantastically," she said. "He started the lottery in record time. We have more money than we thought we would ever have for student scholarshiping. He leaves us in sound financial shape. He leaves the lottery in good standing. I think we are so pleased to have had him."
Passailaigue, who had a salary of $330,000, did not receive any severance, Lamberth said. His resignation letter was dated Monday, but Lamberth said she received it Friday.
Passailaigue didn't speak as he left the commission meeting before it went into executive session and he didn't return to the meeting room when the commissioners voted. A message left at his office was not immediately returned.
Passailaigue did address the commission during its regular meeting, although he offered no hint that he had already submitted his resignation.
In a meeting abbreviated so commissioners could attend a 1 p.m. memorial service for Maria Haley, Passailaigue offered a rundown of August sales and said the lottery needs to increase the percentage of its tickets sold for online games like Powerball. In August, about 84 percent of sales were for instant, scratchoff tickets.
Read tomorrow's Arkansas Democrat-Gazette for full details.
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