Cons of Privatizing the State Lottery
A recent report from the California Budget Project dissects the governor’s proposal to privatize the state lottery and finds it wanting in several respects. According to the report, the proposal overestimates the amount of money that the state would likely get from privatization (in the range of $13-18 billion rather than the $37 billion claimed by the governor’s office).
Privatization would also likely conflict with existing or pending tribal gaming compacts. It would also more likely than not wind up enticing low-income Californians, who already buy the bulk of lottery tickets, to spend more money on the lottery.