Penn. Lottery gets advice from Illinois on privatization

Aug 9, 2012, 7:42 am (13 comments)

Pennsylvania Lottery

State trying to decide if privately operating the lottery is right approach

Pennsylvania is currently looking into privatizing its lottery, but one official with the Illinois lottery, the only private system in the nation, is warning the commonwealth to carefully plan how it would choose a company to manage day-to-day operations.

Illinois Lottery Superintendent Michael Jones says in the Land of Lincoln, potential overseers had to estimate how much money they'd be able to bring into the lottery. A company would be fined if it was selected and revenue didn't meet its expectations. Jones says Pennsylvania should find a better way to appeal to competing businesses. "At least, in Illinois, I think the emphasis on that complicated a system of evaluation is one of the reasons the competition was so limited to only two companies," he says.

Pennsylvania Department of Revenue Secretary Dan Meuser says the state's already heard from companies interested in running the lottery, which pays for programs benefitting older Pennsylvanians. He says commonwealth officials are debating whether or not to take the next step. "Once we do our due diligence, we will then determine whether or not to move on to the next phase, which would be an invitation for bids," he says.

Meuser says if the state decides to forge ahead with the privatization process, it could solicit proposals from interested companies this fall.

WITF

Comments

mcginnin56

Should be a smart move, if they can boost sales and increase market share. The potential company should also be rewarded if it exceeds its target

revenues. Picking the right companies with proven track records will be the hard part.

haymaker's avatarhaymaker

Hey PA. don't do this, also get out of the liquor buisiness and forget about making your stretch of Interstate 80 a toll road,

none of these are good ideas.

TheGameGrl's avatarTheGameGrl

I agree to disagree here. One: Yes, keep the Lottery with the State.

Two: Keep the liquor license in the Commonwealth's hands.  Our endearing neighbors are proof (no pun intended!), that going private does increase crime on both the business level and within the laws. Anytime chemicals are involved, its best to leave it to the state to control. THere is a reason that PA only alots so many licenses to establishments.

Our Lottery goes private and it lines another scoundrels pocket. PLus makes it that we have to pay taxes on our winnings. Think about it, are you willing to pay 25% to the state then..because that is the part that WILL happen. Gaming then becomes taxed. Right now we are tax free from the state level. Lets not ruin a good thing that still benefits us on the winning claims level.

Coin Toss's avatarCoin Toss

From another News thread:

Report: Ill. lottery manager short $100M on profit

The Illinois Lottery's private manager fell nearly $100 million short of the profits it promised to deliver for the state.

But the Chicago Tribune reported Tuesday that revenues generated by Northstar Lottery Group still set an Illinois record. Illinois has fallen behind other state lotteries for years.

Northstar promised $825 million in net revenue when it took over the lottery in July 2011. A Tribune analysis found it had collected $726 million by the end of June.

That could mean hundreds of millions of dollars in penalties. The same month the company got the contract, it began seeking a reduction in what it promised. An arbitrator will decide the matter.

https://www.lotterypost.com/news/249277

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I don't think the states should sell their lotteries too private firms. Illinois' finances are a nightmare and I think one reason Gov. Quinn did it was just to eliminate some state employees.

Northstar has done a lot of things marketing wise, but other than that, so so. The machines that were suppossed to let you check scratchers, insert playslips, etc... are already just glorified scratcher machines, at least in the part of the state I'm in.

Also, seems silly for states running a lottery to sell to private firms because they want the cash 'right now' yet they themselves prefer that jackpot winners go the annuity route. Think about that one.

Why sell a cash cow, a proven money maker?

Don't do it, PA, don't do it.

haymaker's avatarhaymaker

Quote: Originally posted by TheGameGrl on Aug 10, 2012

I agree to disagree here. One: Yes, keep the Lottery with the State.

Two: Keep the liquor license in the Commonwealth's hands.  Our endearing neighbors are proof (no pun intended!), that going private does increase crime on both the business level and within the laws. Anytime chemicals are involved, its best to leave it to the state to control. THere is a reason that PA only alots so many licenses to establishments.

Our Lottery goes private and it lines another scoundrels pocket. PLus makes it that we have to pay taxes on our winnings. Think about it, are you willing to pay 25% to the state then..because that is the part that WILL happen. Gaming then becomes taxed. Right now we are tax free from the state level. Lets not ruin a good thing that still benefits us on the winning claims level.

Wow, only one person from PA. and one formally of PA. have anything to say about this ?

rdgrnr's avatarrdgrnr

Quote: Originally posted by haymaker on Aug 12, 2012

Wow, only one person from PA. and one formally of PA. have anything to say about this ?

Was the one formally of PA wearing a tux?  Wink

haymaker's avatarhaymaker

Quote: Originally posted by rdgrnr on Aug 12, 2012

Was the one formally of PA wearing a tux?  Wink

LOL , good one.

rdgrnr's avatarrdgrnr

Quote: Originally posted by haymaker on Aug 12, 2012

LOL , good one.

Sorry haymaker, I couldn't resist.

haymaker's avatarhaymaker

Quote: Originally posted by rdgrnr on Aug 12, 2012

Sorry haymaker, I couldn't resist.

Its OK, a little levity never hurt no one.

rdgrnr's avatarrdgrnr

Quote: Originally posted by haymaker on Aug 12, 2012

Its OK, a little levity never hurt no one.

Yeah, but a man's gotta know his levitations.

haymaker's avatarhaymaker

Quote: Originally posted by rdgrnr on Aug 12, 2012

Yeah, but a man's gotta know his levitations.

Sounds like advice from Clint.

rdgrnr's avatarrdgrnr

Quote: Originally posted by haymaker on Aug 12, 2012

Sounds like advice from Clint.

Heh,heh,heh,heh,heh...

haymaker's avatarhaymaker

Now jersey is looking into privatization, again.

Jersey, don't do this.

Don't fix what ain't broken.

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