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Despite strong opposition, Indiana moves ahead with selling lottery

Indiana LotteryIndiana Lottery: Despite strong opposition, Indiana moves ahead with selling lottery

Indiana is considering a Wall Street investment firm to help it pull together a plan to lease the Hoosier Lottery, despite legislative skepticism that could kill the deal.

Gov. Mitch Daniels said Friday the administration is negotiating a contract with Morgan Stanley to test the market. A similar contract with Goldman Sachs & Co. to market the Indiana Toll Road last year was worth about $20 million.

The Toll Road eventually was leased for 75 years for $3.8 billion, and the state has estimated that a 30-year lease of the lottery would bring in $1 billion upfront, plus additional money annually.

"A billion dollars is just our best estimate. It could be more," Daniels said.

The governor noted that some other states such as Illinois and New Jersey also are exploring putting their state lotteries in the hands of private management.

House Speaker B. Patrick Bauer said Daniels is moving too fast.

"The bill to sell the lottery has not yet even been heard (in the legislature), and they're already putting out apparently feelers for it," said Bauer, D-South Bend. "I just think that's jumping the law, if not the gun. I think 'presumptuous' is too soft a word to say when the governor goes ahead and ignores the fact that that bill hasn't passed."

So far, legislators in both parties have had more questions than praise for the proposal, and some — including Bauer — have said a private firm would have to expand gambling greatly in Indiana to make a profit.

Indianapolis Star

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3 comments. Last comment 10 years ago by psykomo.
Page 1 of 1
BobP's avatar - bobp avatar.png
Dump Water Florida
United States
Member #380
June 5, 2002
3106 Posts
Offline
Posted: January 24, 2007, 1:49 am - IP Logged

Simple math tells us this can't be a good deal for anyone.

If business would make money buying the state lottery that's money the state could have made just as well.  Selling off the people's assets to private industry for short term gain is not in our best interest. 

Business is always ready to buy, devalue, cheapen, take a profit and abandon.  Like any over paid takeover the customers pay the price in less for more. 

It isn't like we're ever going to see a lottery for the people with a 95% return.  BobP

    psykomo's avatar - animal shark.jpg

    United States
    Member #4877
    May 30, 2004
    5124 Posts
    Offline
    Posted: January 24, 2007, 11:41 am - IP Logged

    Let's........be fair & tell-all-truth

    "Little People"....LUV's TUNA too!

    (make min.-wage available to ALL..not SOME)

    Another WON ......INDY LOTTERY!!!!!!!!!!!!!

        "BITES THE DUST"

    (WHO is IT??????........L@@K'n OUT for the "LITTLE PEOPLE"???)

    No Pity!No Pity!No Pity!Red DevilRed DevilRed Devil Thinking of...SantaNoel

      psykomo's avatar - animal shark.jpg

      United States
      Member #4877
      May 30, 2004
      5124 Posts
      Offline
      Posted: January 28, 2007, 10:06 am - IP Logged

      Let's........be fair & tell-all-truth

      "Little People"....LUV's TUNA too!

      (make min.-wage available to ALL..not SOME)

      Another WON ......INDY LOTTERY!!!!!!!!!!!!!

          "BITES THE DUST"

      (WHO is IT??????........L@@K'n OUT for the "LITTLE PEOPLE"???)

      No Pity!No Pity!No Pity!Red DevilRed DevilRed Devil Thinking of...SantaNoel

      $ell.....$ell......$ell.......Moe MONEY & Moe MONEY!!!

      and..............Another WON......

        "Bites De Dust"

      Gee....our LEADERS have to make HARD CHOICES

      for all......"US" LITTLE  people Hurray!Hyper   WinkCoffee   US Flag     Agree with stupid  WinkSleep  PatriotGuitar  Agree with stupid