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N.J. might privatize lottery, bring in $120M up front

Published: Tuesday, August 14, 2012, 6:50 AM     Updated: Tuesday, August 14, 2012, 8:02 PM

TRENTON — New Jersey is considering privatizing the state's lottery in a move that could bring the state $120 million up front.

The Asbury Park Press reported that the state asked lottery companies on Friday to submit their bids.

It's a path other states are considering. Illinois outsourced operations of its lottery last year. Indiana is planning to complete a deal by Nov. 1 to do the same and other states, including Pennsylvania, are looking into it.

The administration of former Gov. Jon Corzine considered the concept years ago and a task force recommended in 2010 that current Gov. Chris Christie do it.

The contract to run the New Jersey Lottery, the 8th-largest in the country, would begin as early as March 2013 and last until 2029.

It would be a gamble for the company.

The more the lottery brings in, the higher percentage of the income the company would be able to keep.

But if income projections are not met, the company would have to pay a penalty.

The state estimates that a company could make more than $1 billion over the life of the contract.

It's not clear how many of the New Jersey Lottery's 150 employees would lose their jobs. But the state estimated that expenses would drop to $13 million a year from the current $37 million.