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Privatization of The Ohio Lottery

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Started 8 months ago by News
Latest reply from dirtgirl

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News
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Kasich Wants Consultant To Look At Ohio Lottery
By: Associated Press
Published: August 30, 2011

Gov. John Kasich wants to hire a consultant to determine whether the state should let a private company run the day-to-day operations of the Ohio Lottery.

The administration wants to find out the full value of the lottery and how to maximize it, said Rob Nichols, a spokesman for Kasich.

The governor, who already is privatizing Ohio's job creation operation and some state prisons and also wants to explore leasing the Ohio Turnpike, hasn't yet made a final decision on putting the Ohio Lottery in private hands, reported The Plain Dealer.

READ MORE: http://www2.ohiovotes2011.com/news/2011/aug/30/kasich-wants-consultant-look-ohio-lottery-ar-712569/

Posted 8 months ago #
joev
Merion Village
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STUPID idea. This is one-time money guv!

Posted 8 months ago #
berdawn
near that stretch of N. High Street in the Short North
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joev said:
STUPID idea. This is one-time money guv!

But if he gets rid of all the revenue, just THINK of all the savings he can pass on through cuts!

Posted 8 months ago #
alexs
Limestone bluffs of the Scioto
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Former state auditor Mary Taylor, who is now Ohio's lieutenant governor, issued an audit of the lottery last year that showed it was well managed but could make more money if it was free of legislative oversight.

There you go, remove public oversight and turn the task over to someone who can get 'r done behind closed doors.

Posted 8 months ago #
Twixlen
Westgate, Columbus
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It's like the whole state is under a fire sale. We need dudes with spinnie signs at all the borders.

Posted 8 months ago #
berdawn
near that stretch of N. High Street in the Short North
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Twixlen said:
It's like the whole state is under a fire sale. We need dudes with spinnie signs at all the borders.

I think WV already does that.

Posted 8 months ago #
Twixlen
Westgate, Columbus
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alexs said:

Former state auditor Mary Taylor, who is now Ohio's lieutenant governor, issued an audit of the lottery last year that showed it was well managed but could make more money if it was free of legislative oversight.

There you go, remove public oversight and turn the task over to someone who can get 'r done behind closed doors.

Interestingly, I could also make more money with no legislative oversight.

Posted 8 months ago #
Twixlen
Westgate, Columbus
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berdawn said:
I think WV already does that.

Huh. That's a competition with no winners.

Posted 8 months ago #
rus

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Twixlen said:
Interestingly, I could also make more money with no legislative oversight.

Gee, how would that work... oh... HEY NOW!

Posted 8 months ago #
berdawn
near that stretch of N. High Street in the Short North
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Twixlen said:
Huh. That's a competition with no winners.

loser gets called Texas?

Posted 8 months ago #
Walker
The KLD / Downtown
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Twixlen said:
It's like the whole state is under a fire sale. We need dudes with spinnie signs at all the borders.

I was thinking maybe Kasich could do a Groupon and start selling off divisions of the state government for 50% off. ;)

Posted 8 months ago #
joev
Merion Village
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If Kasich keeps playing fast and loose, he's going to get indicted soon. Blago II.

Posted 8 months ago #
berdawn
near that stretch of N. High Street in the Short North
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joev said:
If Kasich keeps playing fast and loose, he's going to get indicted soon. Blago II.

I don't think he's personally getting $$$ (yet...I'm sure the beneficiaries of his policy making will smile on him when he leaves office)

Posted 8 months ago #
joev
Merion Village
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berdawn said:
I don't think he's personally getting $$$ (yet...I'm sure the beneficiaries of his policy making will smile on him when he leaves office)

He's getting close. Why sell off the pieces of the government that turn a profit? He's creating a crater in funding for those programs that government must do and do not have self-funding possibilities.

Posted 8 months ago #
rus

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This bit is interesting from TFA:

A pair of conservative groups in June predicted there would be many lawsuits if the state moves forward with privatizing lottery operations and adding slots-like video lottery terminals at horse tracks.

The opponents argue that state law says the lottery must be run by a state agency and that its proceeds can't be taken away from education. Some anticipate that schools would sue to protect their lottery payouts.

Supporters say limiting privatization to management is a legal way around the requirement that money goes to schools.

Posted 8 months ago #
dirtgirl
University District
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rus is right, I went to that press conference. not only does the Ohio Constitution pretty clearly state that it must be run by a state agency, but the US Department of Justice has said the same thing. I blogged about this back in June. Basically, all they can legally do is what Illinois has done, which is outsource some marketing and sales activities, but all decision-making must be retained by the state, including what new games to offer and how much tickets should cost. The vendor even has to preserve any collective bargaining agreements that are in place. Can't see how that's going to command much money on the market.

What gets me about all of this is that this is the THIRD time the Governor has hired an outside consultant just to help him with gambling. What is the use of the 5,000 or so patronage positions he's allowed to fill as Governor, and the highly-paid staff he's surrounded himself with, if they can't manage a project like this on their own? Are his appointees at the Lottery so inept they can't figure out an appropriate price to pay for what they do every day? Or, rather, is this just another way for him to funnel contracts to his private sector buddies?

Meanwhile, ODOT just got 14 bids from potential consultants to advise the state on leasing the Turnpike. Here's who applied: Citigroup Global Markets Inc., Morgan Stanley, KPMG Corporate Finance, UBS Investment Bank, BMO Capital Markets, Greenhill & Co., Macquarie Capital, Public Financial Management, RBC Capital Markets, Lazard Freres & Co., William Blair Co., law firm Ice Miller, and Seel Jackson Consulting. The Kasich administration is becoming a jobs stimulus act for investment bankers.

Posted 8 months ago #
Krobar
Victorian Village
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Can we get a consultant to see how much we can make privatizing the Governors Office? Oh.....

Posted 8 months ago #
Twixlen
Westgate, Columbus
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dirtgirl said:

Meanwhile, ODOT just got 14 bids from potential consultants to advise the state on leasing the Turnpike. Here's who applied: Citigroup Global Markets Inc., Morgan Stanley, KPMG Corporate Finance, UBS Investment Bank, BMO Capital Markets, Greenhill & Co., Macquarie Capital, Public Financial Management, RBC Capital Markets, Lazard Freres & Co., William Blair Co., law firm Ice Miller, and Seel Jackson Consulting. The Kasich administration is becoming a jobs stimulus act for investment bankers.

Oh, for fuck's sake. All contacts he'd have made "working" for Lehman. Good times.

Posted 8 months ago #
dirtgirl
University District
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Twixlen said:
Oh, for fuck's sake. All contacts he'd have made "working" for Lehman. Good times.

probably not shocking, then, that Moelis, his gambling consultant who got a $13.5million "bonus" from the state is packed to the gills with former Lehman staff.

Posted 8 months ago #