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OHIO LOTTERY HEADING FOR PRIVATE SECTOR
June 15, 2011

The new legislation in Ohio could finally privatize the state lottery. The state budget’s latest bill also has language, masterminded by GTECH, which would put control of the $2.5 billion Lottery in the hands of the corporation. However, the problem arose because no public hearing was held on the matter, and some claim there might be some special interests at play here.

“This is not how a transparent government should work,” Democratic State Sen. Mike Skindell of Cleveland stated. “This is of great importance to the state and worth a lot of money and is not getting a proper vetting.”

Republican Pat McDonald, the Chairman of the Ohio Lottery Commission, stated that the commission had absolutely no say in the new legislation. “One can question how a vendor with a history at the lottery and self-interest can get that legislation infused in the budget bill,” he said. National lottery

Mike Dawson, a GTECH lobbyist, sent the legislation to the desk of Senator Chris Widener, the head of the Senate Finance Committee. Widener is the man who decides what gets on the budget bill and what is left out.

“As I said to you, my client wishes to have a level playing field and a transparent process,” Dawson wrote in a co. “We believe that this is in Ohio’s best interest and all potential bidders’ best interest.” Widener introduced the language just days after receiving Dawson’s letter.

But still, the bill does a pretty good job of saying what the prerequisites of running the lottery are and how much power the winning company would have over the lottery. The company would receive a management fee consisting of 5% of the total annual revenue, and it would be exempt from taxes. US lottery

“The management fee, including any performance-based incentive or other compensation paid to the private lottery manager, shall not be subject to any type of taxation by this state or any political subdivision of this state,” the legislation reads.

“We are taking a look at the Senate language now, but at first blush, we are encouraged by the fact that they have embraced the idea of trying to increase the Lottery’s benefit to education by exploring private sector options,” Governor John Kasich stated. The Governor also added that there were extensive talks about taking the lottery to the private sector and that he plans on developing a master plan for state gambling. Mega lottery

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