The feds put the kibosh on Gov. Daniels’ desire to privatize the lottery on account of, well, it’s illegal. The U.S. Department of Justice said states would not comply with federal law if they enter into long-term private management agreements to operate their lotteries.
The ruling said federal law requires that a state exercise actual control over all significant business decisions made by a lottery enterprise and retain all but a minimal share of the equity interest in the profits and losses of the business.
It also said a state had to retain the rights to the trademarks and other unique intellectual property or essential assets of the stateâ€™s lottery.
I’m certain, however, that the Governor will remain diligent in his efforts to find other property of the state to sell.