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Governor Plans To Lease State Lottery

Critics Say Blagojevich Proposal Would Send Lottery Payouts Plummeting

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CHICAGO (CBS) ― A plan to lease the state lottery is running into some stiff opposition.

As CBS 2 Political Editor Mike Flannery reports, critics say the proposal could send lottery payouts plummeting by tens of millions of dollars.

Lottery sales produced $650 million for Illinois's Common School Fund last year -- a lot less than originally promised, but about 30 percent more than a few years ago.

After telling political supporters during last year's campaign that he would try to raise $10 billion by leasing the lottery for up to 75 years to a private operator, Gov. Rod Blagojevich has put out a Request for Qualifications, asking potential bidders to prove they can actually do such a gigantic deal.

On page two, it says a private operator would have to pay out in prize money at least half of the cash collected from sales.

Based on current numbers, that would mean about $50 million less for those who play the lottery, alarming some critics.

"Whatever we end up agreeing has to be something that is responsible and doesn't do damage to a population that needs help, doesn't need money being sucked out of it," said Miguel del Valle.

The governor's chief operating officer suggested that a private operator would not be allowed to market more heavily to ethnic minorities, but that profits are still a must.

More details will come in the governor's March 7 budget address to a joint session of the General Assembly.

(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)

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