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California considers privatized lottery

23 April 2008

CALIFORNIA -- As reported by the Sacramento Bee: "Gov. Arnold Schwarzenegger and some lawmakers are newly interested in a push to privatize the state lottery as one of the least painful possibilities for addressing the state's financial troubles.

"But it's become clear that in order to make the business enticing to private investors, voters would have to agree to authorize bigger jackpots and allow games that are currently banned.

"An analysis prepared by Lehman Bros. for the Schwarzenegger administration revealed private investors would want to target middle-class Californians by installing more terminals and vending machines where they frequently shop, such as Target or Costco. It would boost revenues by running aggressive marketing campaigns and selling ads on lottery tickets. Click here to find out more!

"Schwarzenegger's finance director, Michael Genest, said leasing the lottery to an investor like Lehman Bros. would likely require a statewide vote.

"...Beyond that, there may be opposing gambling interests to consider. Many Indian casinos have exclusive rights on electronic gambling devices, and a lottery expansion might conflict with newly minted state compacts..."

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