Oklahoma
State Senate
Communications Division
State Capitol
Oklahoma City, OK 73105
405-521-5774
For Immediate Release: January 18, 2008
Sen. John Ford
Sen. Ford Files Bill to Privatize Lottery
While the people of Oklahoma
voted in favor of a statewide lottery in 2004, it has consistently
failed to produce the amount of education revenue supporters had
claimed it would. That’s why Sen. John
Ford, who represents Craig, Nowata and Washington Counties,
has filed legislation that could result in the privatization of
the lottery.
“I did not support the lottery, and I’ve never bought
a single Oklahoma Lottery ticket, but in 2004, the majority of
voters said this is what they wanted and I respect that,”
Ford said. “However, many people voted yes believing it
would result in a large boost for education funding. We all know
that hasn’t happened. Since the lottery is now a reality
that has been mandated by the citizens of Oklahoma, perhaps at
the very least, we should look at privatization as a way to run
the lottery more efficiently, and get the government out of the
gambling business.”
Ford’s legislation calls for the creation of an eight-person
Oklahoma Lottery Asset Review Board to be chaired by the Lt. Governor,
and would include the Attorney General, the State Treasurer, the
Chancellor for Higher Education, the State Superintendent of Education,
the Career Tech’s executive director, as well as appointees
by the Senate Pro Tempore and the Speaker of the House. The panel
would have the responsibility to examine options for privatizing
the lottery. Ford said the commission would expire by December
31, 2008.
The board would be charged with studying various options and defining
what provisions must be included in a privatization agreement
to maximize potential income to education, Ford said. The Oklahoma
Asset Review Board would then seek bids from approved private
sector companies or other private entities through a competitive
and fully transparent process.
“When the bids are returned, it will be the responsibility
of the board to determine if any of the bids will enhance the
value to education while still meeting the intent of our citizens
when creating the education lottery,” Ford said.
If six of the eight board members agree on a winning bid, they
will forward it to the Governor for his review and potential final
approval. The Governor would then have 14 days to approve the
bid. The lottery would then be transferred to out of state operations
and awarded to the private operator under the terms and conditions
of the agreement. If the Governor does not approve the recommended
bid, the lottery will continue under its current state management
and operation.
Ford also strongly emphasized that the state must always maintain
ongoing oversight of the lottery so that failure to meet the predetermined
concession terms and standards will result in Oklahoma revoking
the lottery from the concessionaire.
If approved, all net proceeds from the concession will be deposited
into the Oklahoma Education Lottery Trust Fund, as is the case
today. Ford emphasized that this bill does not change the current
distribution percentages out of this fund that are currently in
effect.
For more information contact:
Senator Ford's Office - (405) 521-5634
