Proposal to Privatize Lottery Operations

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(Sacramento, CA)
Thursday, May 10, 2007

Administration officials say privatizing lottery operations would bring the state far more money than it makes now.  David Crane is a special Advisor to the Governor.  He says the state earned just over a billion dollars in the last year from the lottery and over the last eighteen years the return has declined. 

 “At the right value for leasing the lottery even just depositing the savings into a savings account could end up generating more revenue for the state…”
Officials did not say exactly how much more such an arrangement could bring the state.  They did say six companies have already expressed interest in the proposal.   Some lawmakers are questioning the plan—one Democrat says it could be a slippery slope to expansion of gaming that voters never intended when they first approved the lottery.