"I see an Enron style theft in the future if they are privatized.What if a Michael Milken runs one of these lotterys?" 

I wasn't arguing or disagreeing with you, Mike.  I only wrote my last comment because you mentioned Enron and Milken in the same sentence and he had nothing to do with the Enron scandal.  Kenneth Lay & Jeffrey Skilling were crooks who committed fraud and destroyed lives by lying to shareholders.  Although I personally believe Milken was a pawn in one of Giuliani's political games to gain media attention and power, that's not the issue.  If someone like Milken ran the lottery, it would be very successful.  He didn't rip off the American people like Enron and he's still a billionaire.

 "leaving those who chose to take an annuity jackpot holding the (empty) bag"

 I don't see how this could happen.  The annuities are guaranteed, since they are investments in bonds and other securities.  The Lottery doesn't keep the money.  Someone please correct me if I'm wrong.

By the way, this doesn't mean I think the lottery should be privatized.