Ohio Governor Eyes Privatization of Lottery

While the Arkansas Lottery predicts declining revenues for fiscal year 2012.

March 16, 2011

CLEVELAND - Ohio Governor John Kasich is looking into privatizing the management of the state lottery, the Lottery Post reports. Kasich is not directly commenting on the issue until after Thursday??s release of the state budget.

The Legislative Service Commission has a proposal to switch the managing of the lottery out of a state agency. Last year as a state auditor, Lt. Governor Mary Taylor wrote a report that the lottery could be improved if it was transitioned to private management.

She indicated that the lottery would be better able to market its games with "modicum of exemption from the Ohio Administration Procedures Act." The state would likely retain some role of oversight of the lottery.

In 2010, the lottery registered record sales of $2.48 billion, exceeding 2009 sales by close to $70 million. Illinois became the first state to allow a private company to run a state lottery, but the change set off court cases and fights among businesses bidding for the lottery management contract.

Meanwhile, the Arkansas Lottery Commission estimates that the state lottery will bring in less money during FY 2012, which starts July 1, the Lottery Post reports. Net profits for next year will be down $5 million.

The upcoming year??s budget used actual revenue numbers, said Ernie Passailaigue, lottery director. The commission approved a new $20 instant ticket game that will debut in May.

"This $20 ticket will be a very good thing and will help us expand our player base," he said. The Arkansas Lottery began in September 2009.

The commission is still considering whether to join the state??s lottery with the multi-state regional game called Decades of Dollars.

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