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NJ court rules against union's effort to stop state lottery privatization

New Jersey LotteryNew Jersey Lottery: NJ court rules against union's effort to stop state lottery privatization
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TRENTON, NJ — A state appeals court last week ruled against a public workers union in its effort to stop New Jersey from privatizing parts of the state lottery.

Despite months of objections from Democratic lawmakers and union leaders, the state announced last June that it signed a 15-year contract for a private company, Northstar New Jersey, to manage the sales and marketing branches of the lottery. Gov. Chris Christie's administration said the move will bring New Jersey a surge in revenue.

But the Communication Workers of America, which represents the state's lottery workers, took the matter to court. The union claimed the plan violated the state constitution and included a bid that was unlawfully approved by the state Treasury Department.

The three-judge panel ruled against both arguments last Wednesday.

The lottery is New Jersey's fourth-largest revenue source. It generates nearly $3 billion in annual ticket sales, and the state receives more than $900 million of it, helping finance scholarships and programs for military veterans and the disabled.

But state officials said the agreement with Northstar will bring even more money. The company paid the state $120 million up front and promised to bring New Jersey at least $1.42 billion in revenue over the next 15 years. Northstar would keep 5 percent of the increases if it meets its goals.

Officials stressed that the state would continue to maintain control and regulation over the lottery. Christie, a Republican, can also end the deal if the firm fails to increase revenue for two years.

But critics said they were bothered that Northstar was the only bidder for the contract and were worried that the deal would lead to job losses.

The CWA added that the state constitution says the lottery can be conducted by the state only and not by a private entity. The appeals court, however, ruled July 3 that it does not read the law that way.

The union also said the director of the Treasury Departments Division of Purchases and Property unlawfully approved Northstar's a $4.75 million annual management fee. But the court said the director "properly exercised her discretion."

A spokesman for the CWA did not immediately return a message seeking comment.

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5 comments. Last comment 5 months ago by THRIFTY.
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Get paid's avatar - Lottery-062.jpg
texas
United States
Member #152331
February 11, 2014
59 Posts
Offline
Posted: July 8, 2014, 1:02 pm - IP Logged

God I hope this is not a Trend.

    RedStang's avatar - mustangshow zps61f7119e.jpg
    Dutchess NY
    United States
    Member #121966
    January 21, 2012
    2743 Posts
    Offline
    Posted: July 8, 2014, 2:09 pm - IP Logged

    There's only a few unions left that still have power. They rest are dying. Their building a new bridge near NYC so the steel workers union got excited. Then they announce their using robotic welders to do some work.

      user71926's avatar - batman34
      New Member
      New York, NY
      United States
      Member #156556
      June 22, 2014
      14 Posts
      Offline
      Posted: July 8, 2014, 10:15 pm - IP Logged

      I hope this is not a trend too!  Else, I'll so move to NY, I did lol!  I love the lotteries but privatizing it just sounds and smells fishy!

        grwurston's avatar - Lottery-012.jpg
        Goal. $1,500 a week.
        bel air maryland
        United States
        Member #90253
        April 24, 2010
        2593 Posts
        Offline
        Posted: July 9, 2014, 9:47 pm - IP Logged

        $1.42 billion over 15 years works out to a $94.6 million a year increase in revenue. But these private companies never say how they plan on raising this money. Rest assured, the players will get screwed before they're done.

        "You can observe a lot just by watching."  Yogi Berra, Hall of Fame baseball player.

        The numbers will tell you what numbers to play. Pay attention to the numbers.

          THRIFTY's avatar - darth vader-face.jpeg
          NEW YORK
          United States
          Member #90537
          April 29, 2010
          3339 Posts
          Offline
          Posted: July 13, 2014, 9:55 pm - IP Logged

          There's only a few unions left that still have power. They rest are dying. Their building a new bridge near NYC so the steel workers union got excited. Then they announce their using robotic welders to do some work.

          I did not know that unions were involved in the lottery business.