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Trend? States Starved for Cash Privatizing their Lottery

I’m starting to see this interesting trend all over the country. States starved for money are considering leasing their lottery business to private corporations in return for an immediate influx of billions of dollars.

Latest to consider this option is the Illinois Lottery, which could raise $10 billion for building roads and schools by privatizing its state-run lottery for a period of 50 years, under a plan the Illinois House approved Wednesday night.

The lottery lease, approved 75-38, was a major step forward for Illinois House Democrats, who acknowledged they have warmed to the idea because they can’t get agreement on any other way to fund a long-delayed capital construction program.

It could be a year before all the pieces are in place to hire a contractor.

Illinois Democrats said they are moving more carefully over letting go of the lottery, created in 1974 to help fund public schools, and which lately has earned $650 million annually for education.

No lease that raises less than $10 billion would be approved. It would run at least 50 years but not more than 60. The state would get 20 percent of the vendor’s earnings and promise at least $600 million for schools.

I’ll be keeping an eye on Illinois and keep you informed of what happens.

We could see more and more of this happening in the future.

What’s happening in your state? Let me know.