Lottery Privatization in New Jersey Casts Doubt

With just one bid, concerns are deepening about the chances for New Jersey to privatize its lottery.

January 02, 2013

TRENTON - A New Jersey lawmaker??s initial concerns at the state??s efforts to privatize its lottery have deepened now that only one bid was submitted for the work, MyCentralJersey.com reports.

The bid was submitted by GTECH Corp., a joint venture that includes two American-based lottery companies and a Canadian pension fund that owns a British lottery company. Regardless of the experience of the parties, Assemblyman Vincent Prieto said New Jersey??s lottery is efficient and does not need to become privatized.

"For a plan that was troubling from the start, the fact that only one bid was submitted in response to a request for proposals only increases my concern," Prieto said. "This casts further doubt on whether this is a smart move. How do we know we are getting the best deal if we have nothing to compare it to?"

Hetty Rosenstein, New Jersey area director for the Communications Workers of America, which represents many lottery employees, opposes the deal.

"It would be a dreadful mistake. This is one of the few areas of government where revenues are coming in higher than expected. We have a good and clean lottery system, and now they??re reviewing a bid from a company that has a terrible reputation in this area," Rosenstein said.

New Jersey is looking to award a 15-year contract to a private company that can increase lottery revenues while assuming marketing and advertising.

A private manager would have to pay New Jersey $120 million up front according to the request for proposal.

Details of GTECH??s bid will be revealed after negotiations are completed.

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