SALEM – If you’ve had a favorite video lottery machine for the past decade, it’s time to start saying your goodbyes.

The Oregon Lottery intends to replace all of the terminals that date back to the early years of video poker by next spring, with 2,300 of the older machines headed for the recycling heap in October, lottery officials say.

Another 2,000 machines will meet their fates in early 2006.

Overall, the state has more than 10,000 video terminals in operation, said lottery spokesman Chuck Baumann.

The major replacement campaign may be jarring to those who feel nostalgic about the older models, but is expected to pay dividends for the state and for retailers who offer the games.

Roughly half of the older machines scheduled to be replaced lack the capacity to offer slot machine-style line games, which the state began offering in May. Since those games went online, the Lottery has seen profits jump by 19 percent compared to the same period a year ago, Baumann said.

In August, for the first time since Oregon starting offering video lottery games, the state hit $13 million in sales in a single week – and it happened twice, he said.

Another reason for the replacement: One of the older models, the Williams 300, circa 1994, is no longer supported by the manufacturer, so it’s difficult to get them fixed if they malfunction.

”It’s essentially an obsolete terminal,” Baumann said.

The first phase of the project will cost $22.3 million for 2,300 terminals; the state hasn’t yet bought the second batch of terminals but the projected rate is about $8,000 apiece, he said.

Machines will earn an average of $500 per week, so they will pay for themselves quickly, he said.

For the most part, you won’t see anybody shedding crocodile tears when the state comes to cart off the old machines, said Patti West, manager of the Sandbagger Saloon, adjacent to the Crooked River Ranch golf course.

The tavern has one older game that’s targeted for replacement, and it is the least popular of the bunch, she said.

Meanwhile, customers are flocking to the new slot-style games.

”People are really excited about the new stuff rolling out,” she said.

Under a new contract hammered out in the spring between the state and video lottery retailers, merchants decide whether they want to offer only video poker – or also add the line games. Those retailers who offer only video poker keep, on average, 28 percent of sales. Those who offer video poker receive 25 percent.

As of Friday, 86 percent of retailers were offering both games, Baumann said.

In the 2005 fiscal year, which ended June 30, the lottery recorded $940 million in sales and, of that, a record $579.7 million was from video terminals.

After paying commissions and overhead costs, the lottery sent $425 million to public education, economic development, state parks and stream restoration efforts. One percent of lottery proceeds pays for intervention for problem gamblers.