Gov. John Kasich's administration moves closer to privatizing lottery
CLEVELAND, Ohio -- Gov. John Kasich is taking another step toward privatizing the operations of the Ohio Lottery Commission .
The administration plans to hire a consultant to look at the nuts and bolts of converting the $2.6 billion lottery into a quasi-government agency and determine its value.
This will make the third contract the administration has awarded to a gaming consultant. The Lottery Commission will formally request proposals from consulting companies in the coming weeks.
Kasich spokesman Rob Nichols said a consultant is needed to provide a "top-to-bottom strategic review of the agency to ultimately determine whether privatizing should be considered and how to maximize the asset to the fullest."
He compared the process to the administration's effort to evaluate and lease the Ohio Turnpike.
"We are looking for the consultant to tell us the highest value," Nichols said.
The state is already paying Spectrum Gaming Group of Linwood, N.J. to advise the governor on such things as whether Ohio should allow additional gambling beyond the lottery and the four casinos approved by voters in 2009.
Ohio also is paying Moelis & Co., an investment firm based in Los Angeles, to advise the state on gambling taxes and fees and what taxpayers should get from the companies vying for a piece of Ohio's gambling industry.
The state's contract with Moelis is a source of controversy because it allowed the company to net $13 million in incentive fees for negotiating higher license fees from casino companies and for helping close a deal to bring video lottery terminals, or VLTs, to horse race tracks, a move initiated by former Gov. Ted Strickland. Moelis also receives a monthly retainer worth $200,000.
As Ohio auditor last year, Lt. Gov. Mary Taylor released a performance audit of the lottery that concluded it was well managed but could be improved if it became a quasi-corporate agency free of legislative oversight. She said that if the Cleveland-based agency could obtain a "modicum of exemption from the Ohio Administration Procedures Act," it could better react to the market and implement its games, ultimately generating more revenue.
Ohio Lottery Rules - News
Earlier this month, the administration revised rules that would govern the operation of VLTs. The Ohio Lottery Commission signed off on the changes that include lowering from 50 percent to 33 percent the tax rate race tracks would pay the state on VLT
16. Madewell also said that lottery-selected participants will be required to pass a proficiency test and meet additional requirements prior to receiving a permit. Continued participate during the Ohio archery deer season, which begins Sept. 24.
Some older studies show that problems are more likely to spike when casinos are introduced to a gambling-naive area, but gambling isn't new to Ohio. It has horse tracks, the Ohio Lottery, weekly poker games, church bingo, and Internet cafes.
Players won the genetic lottery for athleticism, which also comes with a free education, campus celebrity status and perks the brightest kids on campus will never see. Simply, they are representatives of the University by virtue of their status as
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Ohio Lottery Rules - Bookshelf
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