DOJ says privatizing state lotteries illegal

Comment #11

myzeus — Tue, 25 Nov 2008 05:01:28 GMT

I know Gov Rick Perry of Texas was trying to privatize the Texas Lottery awhile back. I don't hear anymore about it so maybe DOJ told Gov Rick Perry the same thing.

Comment #10

time*treat — Sat, 01 Nov 2008 03:46:22 GMT

Doesn't look like Daniels is trying to fill out a change-of-address form anytime soon.

Comment #9

jim695 — Thu, 30 Oct 2008 06:40:24 GMT

Excellent point, KY Floyd; the laws you reference can be found under Title 18 of the United States Code which, ironically, also contains the RICO statutes.

During our four-year investigation into the Hoosier Lottery and their crooked practices, LosingJeff and I were told by three different Indiana law firms, What you have is probably sufficient to convict on at least three RICO predicates (Wire Fraud, Conspiracy to Commit Wire Fraud and Misappropriation/ Conversion of Public Funds).

Non... [ More ]

Comment #8

KY Floyd — Thu, 30 Oct 2008 05:56:42 GMT

Thanks. Nowadays RICO statutes apply are often applied to anything that is criminal and shows a pattern of repetition. RICO is an acronym for Rackateer Infuenced and Corrupt Organizations and was originally intended to help fight organized crime. Since its inception it has been used against people who certainly weren't part of organized crime in the typical sense, so long as their crimes are among those covered by the statutes. Gambling, of course, is one of them. The Key West police department... [ More ]

Comment #7

Littleoldlady — Wed, 29 Oct 2008 21:49:26 GMT

I personally think that if they shouldn't be able to lease their state's lottery. The people voted for a state run lottery NOT a state leased run lottery.

Comment #6

Stack47 — Wed, 29 Oct 2008 18:17:13 GMT

Geez, If I bought a Lotto ticket, would I have to confer with the Feds before I went an Leased my ticket to someone else??

When we sign the back of a ticket we establish ownership and the worth of the ticket is determined by the state's lottery rules and regulations. We've heard about many court cases where the ownership of tickets was in dispute but I don't think any of them disputed the state's lottery rules and regulations. A legal contract to lease your ticket should conform to federal a... [ More ]

Comment #5

konane — Wed, 29 Oct 2008 15:00:13 GMT

KY Floyd, you have a keen legal mind ..... aren't lotteries, their operation plus the operation of legalized gambling in the US covered under RICO Laws

Comment #4

KY Floyd — Tue, 28 Oct 2008 21:25:38 GMT

Whether or not any federal monies are involved has absolutely nothing to do with it. While some might think they only have an opinion, the Federal government very definitely has laws regulating lotteries and that very definitely gives them a say until such time as any such laws are ruled invalid, or the scope of the laws is limited,by a federal court.

Comment #3

MADDOG10 — Tue, 28 Oct 2008 20:16:14 GMT

Daniels said in a statement that he was surprised by the opinion from the Justice Department's Office of Legal Counsel.

Actually, the Feds have NO say so in the matter, because NO federal funds were used to start , or maintain the Lottery in any State. They may have an opinion, but thats as far as it goes. You know, like everyone else has got an (***hole)....! .

If they interperet that they have a regulation as to what a State can do with it's own Lottery, then maybe they should be puttin... [ More ]

Comment #2

BaristaExpress — Tue, 28 Oct 2008 19:19:49 GMT

Maybe you are not an attorney But, you do need to learn how to read a little better though.

The best legal advice available to us had suggested that the OLC would not interpret federal lottery statutes as preventing the long-term lease of state lotteries, he said.

Now the key words in all of that above is Interpret Federal Lottery Statutes! Yes, it seems the Feds have that covered too with regulations.

Comment #1

Drivedabizness — Tue, 28 Oct 2008 15:32:11 GMT

I'm not an attorney BUT...

The Feds have limited ability to manage the operations of state government (the principle at work here is Federalism).

Federal dollars go into welfare programs (as per example at the end of the article) and are disbursed by the States. No federal dollars go into state lotteries and it is unclear to me that they have significant say in this area.

Looks to me like opponents of privatization (which has more than enough of its own issues on the meri... [ More ]

DOJ says privatizing state lotteries illegal

Lottery Post — Tue, 28 Oct 2008 12:25:43 GMT

Indiana drops privatization plans after DOJ issues opinion

Indiana Governor Mitch Daniels said Friday that he is dropping the idea of privatizing the Hoosier Lottery as an option of funding a college scholarship program after the U.S. Department of Justice said such a move would not comply with federal law.

The Oct. 16 opinion, which Daniels' office said was requested by Indiana and New Jersey, says states would not comply with federal law if they enter into long-term private management ag... [ More ]