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Maine Lottery Considering Privatization
Maine Lottery Considering Privatization
Many states are now facing serious budget shortfalls and are looking for ways to fill empty state coffers. Raising taxes would be politically unpopular and most politicians are reluctant to raise taxes. Some states are trying to raise additional revenue by boosting the sale of lottery tickets. Some states have installed lottery vending machines and have had some success. Other states are considering the sale of online lottery tickets once federal regulations are clarified. At present many credit card companies will not process lottery related transactions for fear of running afoul of the Justice department and ambitious prosecutors. Illinois and Iowa are both looking into the possibility of online ticket sales.
Some states are considering privatizing their lotteries. Several states already have outside companies operating their lotteries and in most cases the results have been positive. Usually states retain ownership of the lotteries and lottery management firms are responsible for marketing, providing lottery machines, developing new games and selling tickets through lottery retailers. This arrangement can be very lucrative for government and the private operators. Illinois is now talking to several gaming giants about privatizing their lottery.
Maine is another state with serious budget problems and legislators are discussing the privatization of Maine’s state lottery. Maine Governor Baldacci has instructed all state agencies to explore more efficient and cost effective ways to provide services and this includes the state’s lottery. Maine has considered privatizing the lottery in the past but the idea was rejected but serious budget problems is making Maine take another look at privatizing the state’s lottery. Some lawmakers are concerned that while the sale of the lottery may bring a huge onetime payment the state would lose money in the long run. Another concern is that a private lottery operator may decide to change agreements with lottery retailers. Currently the Maine lottery pays more than $16 million dollars annually to lottery retailers providing much needed income for small businesses. Maine Representative Linda Valentino, D-Saco stated, “The lottery is huge for helping small businesses stay in business. I would rather be spreading this money out to small businesses than giving it all to some company that is running the lottery.”
Federal regulations also complicate plans for lottery privatization. Under federal law state lotteries must have government employees in charge of day to day lottery operations. Maine Lottery Director Dan Gwadosky stated, “Many states have looked to find ways to further privatize their operations, but they all have run up against the Justice Department rulings. But they are still looking, and we are still looking.” Some lottery experts believe that if the political climate in Washington shifts after the 2010 elections it could open the door for lottery privatization.
N Carolina to Add Mega Millions
North Carolina to Add Mega Millions
In the recent past most states offered lottery players either Powerball or Mega Millions. Many states are starting to offer players both mega jackpot lotteries in an attempt to boost lottery ticket sales and add more revenues to strapped state treasuries. Recently Tennessee agreed to offer its lottery players both lotteries and now North Carolina will offer players both Powerball and Mega Millions.
North Carolina’s lottery commission recently voted to add the multi state Mega Millions lottery to North Carolina’s lottery menu. The Mega Millions lottery is expected to be available for North Carolina lottery players by January 2010. The addition of Mega Millions will give players four chances to win every week during two weekly drawings. Mega Millions jackpots routinely top $100 million dollars. Despite astronomical odds both Powerball and mega Millions attract millions of players on a regular basis. Powerball odds stand at 1 in 195,249,054 and Mega Millions odds are 1 in 175,711,536.
States that offer lotteries usually offer only one of the multi state games. Both Virginia and Georgia are expected to offer both games in the future. Many see the addition of both lotteries in many states as a move towards a national lottery which could be offered as early as fall 2010. North Carolina Lottery Executive Director Tom Shaheen, who is also president of the association of Powerball states, expects a significant increase in ticket sales. An 18 to 25% increase in ticket sales is predicted which could mean $38 million to $52 million more lottery dollars.
Dipak Desai, manager of the Ballantyne BP on Ballantyne Commons Parkway which is one of the biggest Charlotte area Powerball ticket sellers stated, “In a bad economy like this, people are trying to look for every bit of luck they can find.” The addition of Mega Millions could actually create a few new jobs in North Carolina. Cathy Oreshack, a clerk at the BP station located at Spring Forest Road in Raleigh said, “Both of them are going to have huge jackpots two days a week, and that’s going to require more manpower in the store.”
If states want to get serious about increasing lottery generated revenue they may want to consider allowing the sale of online lottery tickets. Allowing players to buy online lottery tickets would boost sales and be a big convenience for players. Ideally players could buy online lottery tickets from a home computer or mobile device. Adding 21st century technology would easily benefit state lotteries and help states to close budget gaps.