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Schwarzenegger proposed privatized lottery11 May 2007SACRAMENTO, California -- As reported by the San Diego Union Tribune: "Gov. Arnold Schwarzenegger's plan to turn the state lottery over to a private firm could yield about $15 billion, but a powerful teachers union, Indian gaming tribes and some legislators are skeptical. "The governor's aides said two investment banking firms, Goldman Sachs and Lehman Brothers, have submitted proposals to run the underperforming lottery. Several other firms and financial institutions also are interested. "The lottery is lagging because sales per capita are half that of the national average, and the number of lottery ticket outlets is below average, said Fred Klass of the state Department of Finance. "The private firms believe they could dramatically increase ticket sales for the lottery, created by a ballot initiative in 1984, and make a profit while generating more revenue for the state. "...Under Schwarzenegger's plan, the state would lease the lottery, not sell it outright. He emphasized that no decision has been made and he wants to move slowly and discuss the plan with legislative leaders and all of the groups that have a stake in the lottery..." |