States Looking To Private Investors To Run Lotteries

States are seeing the potential for more revenue dollars in their state lotteries. More and more individual states are looking to private investors to run their lottery.

Lotteries are a way for state governments to raise money through legalized gambling. The hypocrisy that exists in this form of gambling can be seen in almost every state.

Politicians claim that they are against gambling, then turn around and support state lotteries. The lottery is the biggest legalized form of gambling.

Now, state officials are starting to find the advantage to leasing out their lotteries to individual private investors. The investors would have to pay a fee up front to win the rights to run the lottery.

In Vermont, the idea has been talked about heavily and is under serious consideration. Investment bank Lehman Bros. has put together a proposal for Governor Jim Douglas that includes an up front payment of $56 million, plus annual payments.

Other states have followed the ideas of Vermont and are currently looking into the options of leasing out to private groups. The guess is that once a couple of states implements the plan, others will then follow the lead.

January 20, 2008
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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