New Jersey Governor Jon Corzine hopes his state hits the jackpot by possibly selling the rights to the state lottery. After all, the Garden State needs all the revenue it can get, as it forecasts a $2 billion budget deficit in the next fiscal year.
Bloomberg reported Wednesday, Jan. 31, that the former Goldman Sachs CEO is pushing for a lottery deal along with other state asset sales such as leasing the New Jersey Turnpike. The sale of the lottery, however, may have the best chance of gaining support by the state legislature. It's a service that, if sold, wouldn't necessarily affect the basic cost of living to a majority of New Jerseyeans unlike the privatization of the Turnpike, which could result in higher tolls thereby angering a majority of Garden State voters motorists.
A buyer would win the right to administer the lottery, which generated $36.4 billion in revenue in 2005; $14.7 billion of which went to the state. UBS, which the state hired to investigate asset sales, said the possible lottery divestiture is a "low-capital investment, highly commercial enterprise that lends itself to further consideration.'' And that's exactly what the former Wall Street dealmaker wants to hear. — Gerald Magpily
See story from Bloomberg
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