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Governor 39% has a new plan to privatize yet another state institution. During next week's State of the State Address, Rick Perry plans on discussing a plan to sell the Texas Lottery to a private corporation, according to the American-Statesman.
Voters approved the state lottery in 1992 but profits have been shaky. Projected sales have not lived up to expectations, however according to the Texas Lottery website, the lottery has generated $13 billion since then. Since 1997, all of the revenue ($8 billion worth) has been allocated to public education. It is unknown why Perry would want to sell off a money making device that was approved by a majority of the voters in the state. Also the reason that state lotteries were formed in the first place, is because private lotteries were wrecked with corruption.
However, some citizens think the Texas Lottery is just as corrupt. I spoke with Dawn Nettles, the editor of the Texas Lotto Report, based in Garland TX. Dawn has been keeping track of the Texas Lottery Commission for years, and has proven vast discrepencies in its payouts and its stated jackpots. She stated the following when I asked her thoughts on Perry's new plan:
...My thought is that because the lotteries have been caught deceiving the public; cheating Lotto Winners; offering unfair games of chance to consumers; winners coming forward with horror stories about winning; the tax situation when someone wins... I think the reason states want to sell is because of the loss of revenue they've been encountering and will continue to encounter under current management practices.
So there may be some merit to what Perry is trying to do here. However, the real problem seems to lie within the Texas Lottery Commission itself and its shortcomings. The mismanagement may be leading to the lack of profits that were expected.
While states like Iowa and Illinois are ready to auction off their lottos to the highest bidder due to low revenues, Texas may not want to give up on it just yet. Privatizing the lottery would offer up some quick cash in the sum of billions of dollars.
But once the money is gone, what do we do then? Where will we get the $1 billion that goes to currently help fund education? If the Texas Lottery Commission makes the necessary changes to its games, as well as how it does business, the profits that have been lost over the years may very well come back.
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