Governor Names New Manager of State Lottery : Gambling: The former head of Illinois’ game will try her luck at reversing the decline of California’s program.

Gov. Pete Wilson, hoping to reinvigorate the state’s ailing games of chance, on Friday named former Illinois Lottery Director Sharon Sharp as the new manager of the California Lottery.

Wilson, who conducted a nine-month search for a lottery director, said he selected Sharp because of her record at the Illinois lottery, which showed impressive sales gains during her tenure.

“Sharon’s track record . . . proves she can do the job here in California and turn the fortunes of the California Lottery around,” Wilson said in a press announcement.

Sharp, 51, replaces Chon Gutierrez, an appointee of former Gov. George Deukmejian who was in charge when lottery sales declined steeply.

Sharp accepts the $95,052-a-year post when the California Lottery is facing the worst financial problems in its six-year history. Sales have dropped sharply, the lottery’s contributions to education have dwindled steadily and it has faced rebellion from retailers who market the games.

At the end of the state’s fiscal year June 30, the lottery reported sales of $2.1 billion, a 14% drop from the previous year. A few weeks ago, retail grocers threatened to stop marketing the games if the lottery accepted a preliminary staff proposal to reduce their commissions. The proposal was quickly rejected.

Sharp said she knew of the lottery’s problems and expressed confidence that she will be able to improve the situation.

“I’m realistic about where the California Lottery stands now. I’m realistic about the problems. I know the situation. I also believe strongly that situation can be reversed,” she said.

She suggested that under her leadership, California’s lottery could “once again become the top lottery in the United States” but shied away from committing herself to sales predictions. Sales for the lottery peaked in 1989 at $2.6 billion.

Sharp, who is scheduled to start work Wednesday, also declined to reveal any plans for revitalizing the games, saying she wanted to meet with her staff before making final decisions. To reverse a decline in the game of Lotto, Gutierrez had recommended changes to improve the odds of winning. But state lottery commissioners postponed a final decision on his proposal after Wilson suggested a delay so the new director could act on the problem.

Sharp said Wilson had not given her specific directions for changing the lottery but he had made it clear he thought marketing was the key to a turnaround.

“It used to be in the old days that you would just put a ticket on the streets and it would sell itself. It’s not like that anymore,” she said. “The players need a lottery that keeps them excited and lets them have fun even when they’re not winning.”

Other lottery directors have described Sharp as having built a reputation at the Illinois lottery as a marketing expert.

“She’s a dynamite lady who I think will be very good for California,” said Rebecca Paul, former Florida lottery director who was Sharp’s predecessor in Illinois.

Sharp, a Republican, served as Illinois’ director from 1987 to 1991 under then-Gov. Jim Thompson. It was Thompson, among others, who had recommended her appointment to Wilson.

Sharp said she was replaced when a new governor took office and brought in his own team to run major state departments. Since then, she has worked as president of Sharon Sharp Inc., a consulting firm specializing in the marketing and advertising of lottery games.

Sharp said she took over the Illinois lottery under circumstances similar to those she faces in California. She said her marketing expertise enabled her to change that trend in Illinois and said she expects to achieve similar results in California.