California Lottery Falling Short of Revenue Expectations

The state legislature in California has concluded that California's lottery system, approved by voters back in 1984 to help increase revenue for the public school system, is not living up to its financial goals and the private sector could do better.

In an announcement this afternoon, California Governor Arnold Schwarzenegger plans to privatize the state lottery, a move that has never happened before in the US.

Just about all states have lotteries, a popular source of revenue for the state legislature, but many state officials are reconsidering their benefit because of the expenses of operating them. If California opts to let the private sector take on its lottery system, smaller states will probably follow suit.

California receives approximately $1 billion a year from lottery ticket sales, or less than 1% of total revenue.

"The goal is to maximize the return for the taxpayers of California," Schwarzenegger said on a conference call.

Despite the change in management, players will not really notice a difference. Most of the games will remain the same, that includes scratch-off tickets and the weekly million-dollar drawing, according to a spokeswoman at the Governor's office.

Citizens of California are urged to contact their local representatives to support HR 2046, the Internet Gambling Regulation and Enforcement Act of 2007. The new bill, introduced by Congressman Barney Frank a few weeks ago, would help solve the revenue shortage in states like California by charging taxes to online casinos and online poker rooms. The new bill would also provide assistance to those with gambling addiction problems and provide safeguards against underage betting.

May 11, 2007
Posted By Susan Torres
Staff Editor, CasinoGamblingWeb.com    Previous Page | Internet Gambling | Top Online Casinos | Submit News!