Lottery sell-off plan ridiculed

Critics are debating the wisdom of Governor Rod Blagojevich's plan to lease the state's lottery to a private bidder to help ease the state's fiscal crisis. So far, reaction has not been very positive.

The Chicago Tribune reports:

"Blagojevich has proposed a long-term lease of the state lottery, though the plan has met with lackluster legislative support. [GOP challenger Judy Baar Topinka, the state treasurer] recently proposed a land-based Chicago casino and additional gambling positions at existing casinos.

Blagojevich said his proposal seeks "a new way to take advantage of a state asset" and said Topinka's plan "relies on a significant gaming expansion and on misguided budget priorities." Topinka said Blagojevich's plan "has been ridiculed statewide" and said her proposal "uses a stable funding mechanism" that will be sustained.

Blagojevich's proposal would make Illinois the first state in the US to lease its lottery to a private vendor. The Democratic governor has suggested that a sale or lease could generate as much as $10 billion over a 4-year period. The money would go to fund Illinois schools.

Blagojevich recently said that the response to the idea from potential partners had been "warm enough" that his financial advisors have significantly revised estimates of the payoff a deal could bring. "We think we can get 10, 12 maybe 15 billion dollars," he said.