In order to replace expected lost income from slot machines, Defense Department officials are proposing that military exchanges sell lottery tickets in states that sponsor lotteries. With up to 70,000 troops expected to withdraw from overseas bases, where slot machines are located, officials expect to lose up to 75 percent of morale, welfare and recreation revenue. Lottery sales would help compensate for that loss. The Army, which is the service most affected by the planned withdrawal, has been sending back a portion of the slot-machine income to MWR funds of overseas bases where the machines are located and retaining the remainder for new construction of Army MWR facilities in the States and abroad. The Army would channel part of the revenue from lottery sales to local MWR funds and part to the general fund. Costs of ticket sales would not be paid with taxpayer dollars.