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Michigan latest state to consider selling its lottery

Michigan LotteryMichigan Lottery: Michigan latest state to consider selling its lottery

'Bad idea' continues its rampage through the USA

Michigan has become the latest in a growing list of states to consider selling off its state lottery in a scheme to fix the state's budget problems.

The move was being discussed at the Capitol as lawmakers and administrators look for ways to deal with an $800 million budget shortfall this year, and possibly even larger hole in the year ahead.

Democrat Gov. Jennifer Granholm is expected to announce plans for dealing with the state's structural deficit in her Feb. 6 State of the State address and Feb. 8 proposal for next year's budget.

Privatizing the lottery would net the state a large upfront payment and possibly smaller payments in later years. Critics say it would be a one-time fix and that schools, which got $688 million from lottery sales in the past fiscal year, would be left in the lurch down the road.

The governors of Illinois and Indiana are considering privatizing their state lotteries, despite the idea's lukewarm reception in those states.

Granholm may decide against such a move, in part because she'd rather find permanent solutions to the state's structural deficit. A constitutional amendment passed by voters in 2004 dealing with gambling could make it difficult to privatize the lottery because any changes would require a statewide referendum.

"We would never say never," Granholm spokeswoman Liz Boyd said Thursday of privatizing the lottery. "But while we're looking at everything, we're focused on the structural problem. It is a one-time fix. Generally you use one-time fixes for one-time problems."

Republicans were leery of the move.

A spokesman for House Minority Leader Craig DeRoche, R-Novi, said DeRoche would consider such a plan only if it's part of more fundamental budget reform.

Illinois Gov. Rod Blagojevich, a Democrat, estimates that leasing that state's lottery could yield $10 billion or more. Last year, the Illinois lottery generated revenues of $1.99 billion and a profit of $670.5 million, which went to Illinois schools.

Under his plan, a private company would take over the lottery for decades to come, or perhaps even permanently. The company would pay Illinois billions of dollars over the next few years and, in exchange, get to keep any money the lottery generates over the long term. Critics argue the plan means Illinois schools would lose any benefit from the privatization plan after 2025.

In Indiana, Republican Gov. Mitch Daniels wants to outsource the Hoosier Lottery to a private company for an upfront payment of at least $1 billion to fund new college scholarships and professorships. The plan has drawn skepticism from many members of both parties.

Although privatization may not be in the cards, Michigan already contracts with a private company to handle lottery ticket distribution and online lottery games. GTECH Corp., based in Providence, R.I., was handling online lottery games for the state when it got a contract in 1995 to take over warehousing, distribution and validation of instant game Lottery tickets.

The state pays GTECH about 2 percent of its annual lottery sales, which came to about $40 million in the last fiscal year, according to Lottery director Gary Peters.

AP

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11 comments. Last comment 10 years ago by JADELottery.
Page 1 of 1
liberal47's avatar - Rowlf
Holt MI
United States
Member #2244
September 4, 2003
69 Posts
Offline
Posted: January 27, 2007, 1:45 pm - IP Logged

Crap! The lottery is the one assset the State of Michigan has in it's favor, and these idiots are considering selling it. Granholm had better reconsider quickly. Her predesessor John Engler sold the all of the revenue producing assets Michigan had at the time, and still left the State deep in the hole. Why enrich OUT OF STATE business interests at the long term expense of the schools. Even the Republicans can spot this as a bad bet.

    JAP69's avatar - alas
    South Carolina
    United States
    Member #6
    November 4, 2001
    8790 Posts
    Offline
    Posted: January 27, 2007, 2:00 pm - IP Logged

    Cut public spending to make up the short fall.

    The gravy train is coming to a screeching halt in this country with spend more tax dollars than they have.

    The spending has gone beyond what the tax payers can afford.

    WHATT

      Bradly_60's avatar - disney37
      Atlantic Mine, Michigan
      United States
      Member #416
      June 23, 2002
      1614 Posts
      Offline
      Posted: January 27, 2007, 2:52 pm - IP Logged

      I saw this in our newspaper today.  I highly doubt it will happen here in Michigan though.  The Governor said she probably would turn it down.  I would rather pay an extra 1% state income tax or something else.  $800 millino is a lot to make up but selling the lottery isn't that good of an idea.  They are just throwing this around in MI...nothing substantial yet.

      Brad

        Avatar
        Columbia City, Indiana
        United States
        Member #2978
        December 9, 2003
        381 Posts
        Offline
        Posted: January 27, 2007, 6:22 pm - IP Logged

        Okay, time out ...

        Now, I understand why our evil little gnome of a governor wants to sell our lottery; if he doesn't get rid of it soon, he might be implicated in any criminal charges the Hoosier Lottery eventually generates (and monkeys might fly out of my butt ... Well, they could ...)

        But why would Illinois want to sell theirs??? The Illinois Lottery has comparatively little overhead, since they use Iowa's numbers, so what, exactly, would Illinois like to outsource, and how, exactly, will it save them, or make them, any money?

        This business of "outsourcing" state assets seems to be nothing more than a not-so-clever ruse, cooked up by our elected leaders to make incoming state revenues even more difficult for the general public to track. The only reason a state lottery would lose money is because of bad management; if the lottery made money last year, it follows that it will also make money this year, and next year, and the next, and so on.

        The problem, in my opinion, is that our legislators spend our money like drunken sailors in a brothel, and when it's all gone, they steal OUR stuff and make a bee-line for the local pawn shop. After all, why should they suffer just because our taxes don't keep up with their spending habits? Moreover, I think it should be obvious to all of us by now that they simply don't know what they're doing, and they're either too stupid or too stubborn to admit it. Consequently, rather than confess the job is just too much for them, Indiana's lawmakers quietly voted themselves legislative and judicial immunities from the laws they write to govern the rest of us. Then, they approved a bill which states we can't have a referendum vote in Indiana unless the legislature approves it by unanimous vote. Shortly thereafter, they passed another law which outlaws recall elections so, now, Indiana citizens can be arrested just for gathering signatures for a recall petition against an elected official. This pretty much guarantees that NONE of them can lose their jobs for ANY reason.

        Nice work if you can get it ...

        Come, Pinky; we must prepare for tomorrow night...

        Jim

          Amazing Grace's avatar - lion
          rainbow lake
          Canada
          Member #25177
          November 2, 2005
          10764 Posts
          Offline
          Posted: January 27, 2007, 6:34 pm - IP Logged

          'Bad idea' continues its rampage through the USA

          Michigan has become the latest in a growing list of states to consider selling off its state lottery in a scheme to fix the state's budget problems.

          The move was being discussed at the Capitol as lawmakers and administrators look for ways to deal with an $800 million budget shortfall this year, and possibly even larger hole in the year ahead.

          Democrat Gov. Jennifer Granholm is expected to announce plans for dealing with the state's structural deficit in her Feb. 6 State of the State address and Feb. 8 proposal for next year's budget.

          Privatizing the lottery would net the state a large upfront payment and possibly smaller payments in later years. Critics say it would be a one-time fix and that schools, which got $688 million from lottery sales in the past fiscal year, would be left in the lurch down the road.

          The governors of Illinois and Indiana are considering privatizing their state lotteries, despite the idea's lukewarm reception in those states.

          Granholm may decide against such a move, in part because she'd rather find permanent solutions to the state's structural deficit. A constitutional amendment passed by voters in 2004 dealing with gambling could make it difficult to privatize the lottery because any changes would require a statewide referendum.

          "We would never say never," Granholm spokeswoman Liz Boyd said Thursday of privatizing the lottery. "But while we're looking at everything, we're focused on the structural problem. It is a one-time fix. Generally you use one-time fixes for one-time problems."

          Republicans were leery of the move.

          A spokesman for House Minority Leader Craig DeRoche, R-Novi, said DeRoche would consider such a plan only if it's part of more fundamental budget reform.

          Illinois Gov. Rod Blagojevich, a Democrat, estimates that leasing that state's lottery could yield $10 billion or more. Last year, the Illinois lottery generated revenues of $1.99 billion and a profit of $670.5 million, which went to Illinois schools.

          Under his plan, a private company would take over the lottery for decades to come, or perhaps even permanently. The company would pay Illinois billions of dollars over the next few years and, in exchange, get to keep any money the lottery generates over the long term. Critics argue the plan means Illinois schools would lose any benefit from the privatization plan after 2025.

          In Indiana, Republican Gov. Mitch Daniels wants to outsource the Hoosier Lottery to a private company for an upfront payment of at least $1 billion to fund new college scholarships and professorships. The plan has drawn skepticism from many members of both parties.

          Although privatization may not be in the cards, Michigan already contracts with a private company to handle lottery ticket distribution and online lottery games. GTECH Corp., based in Providence, R.I., was handling online lottery games for the state when it got a contract in 1995 to take over warehousing, distribution and validation of instant game Lottery tickets.

          The state pays GTECH about 2 percent of its annual lottery sales, which came to about $40 million in the last fiscal year, according to Lottery director Gary Peters.

          BONE HEAD GOVERNMENT.

          End the war in Iraq.

          What effect would that have on the general budget?

          Never mind somebodys, Mommy or Daddy Sister,brother,Friend who ever

          gets to come home.

          Now the schools will suffer,

          Its just a money shuffle into the Govts pocket.

          Whose idea is it, the people can replace them.

          Democrat Gov. Jennifer Granholm is expected to announce plans for dealing with the state's structural deficit in her Feb. 6 State of the State address and Feb. 8 proposal for next year's budget.

          Secret to $uccess=Law of Attraction

            Avatar
            Qabloc!zewana
            Neutral Zone
            Member #14628
            April 29, 2005
            31 Posts
            Offline
            Posted: January 27, 2007, 9:10 pm - IP Logged

            What do Canucks know about American government, anyway.  Don't you have your

            own stupid liberal problems up there to deal with?? 

              Avatar
              detroit/michigan/usa
              United States
              Member #12322
              March 11, 2005
              36 Posts
              Offline
              Posted: January 28, 2007, 2:07 am - IP Logged

              rather than trying to hit the lottery, perhaps I should be researching the companies that are considering buying state lottery programs.  In the long run, might be a better investmentParty

                fbird's avatar - nw archer.jpg
                White Lake,Mi
                United States
                Member #1495
                May 12, 2003
                5546 Posts
                Offline
                Posted: January 28, 2007, 8:23 am - IP Logged

                A republican from Novi proposed this.....the governor has said she does not like the idea ..the republican party thinks that some times a private or business could run things better or more efficiently than the gov't  ( remember they wanted to do this with the post office ).....but from what I read in the papers this has as much chance as a fart in a windstorm...LOL!!!!!!!

                VAL

                Don't walk behind me; I may not lead. Don't walk in front of me: I may not follow.

                Just walk beside me and be my friend.

                          Albert Camus

                  psykomo's avatar - animal shark.jpg

                  United States
                  Member #4877
                  May 30, 2004
                  5114 Posts
                  Offline
                  Posted: January 28, 2007, 9:44 am - IP Logged

                  Crap! The lottery is the one assset the State of Michigan has in it's favor, and these idiots are considering selling it. Granholm had better reconsider quickly. Her predesessor John Engler sold the all of the revenue producing assets Michigan had at the time, and still left the State deep in the hole. Why enrich OUT OF STATE business interests at the long term expense of the schools. Even the Republicans can spot this as a bad bet.

                  ANOTHER>>>>>>Won......

                  "Bites De Dust"

                  Maby the Gov. should consider putting her office up 4-sale.............

                  one year at a time for the next 4-years at $200 million a YEAR!!!!!!

                  US Flag Let the bidding....BEGAN$$ US Flag

                   I Agree!P***ed          White BounceWhite BounceWhite Bounce        Party

                    Avatar
                    Delaware
                    United States
                    Member #30273
                    January 14, 2006
                    494 Posts
                    Offline
                    Posted: January 28, 2007, 1:33 pm - IP Logged

                    ANOTHER>>>>>>Won......

                    "Bites De Dust"

                    Maby the Gov. should consider putting her office up 4-sale.............

                    one year at a time for the next 4-years at $200 million a YEAR!!!!!!

                    US Flag Let the bidding....BEGAN$$ US Flag

                     I Agree!P***ed          White BounceWhite BounceWhite Bounce        Party

                    Didn't they sell the governor's office, and the state legislature, out years ago? Green laugh

                      JADELottery's avatar - MeAtWork 03.PNG
                      The Quantum Master
                      West Concord, MN
                      United States
                      Member #21
                      December 7, 2001
                      3675 Posts
                      Offline
                      Posted: January 28, 2007, 5:18 pm - IP Logged

                      Money Junkies looking for that Quick Fix High.

                      Yeah, you always shoot yourself in the foot when you're bleeding from the neck.

                      Presented 'AS IS' and for Entertainment Purposes Only.
                      Any gain or loss is your responsibility.
                      Use at your own risk.

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