Committee to consider privatizing NJ Lottery

A person buys a lottery ticket at the Lucky 7 Deli in Lawrence Township, N.J., Friday, March 30, 2012. Lottery ticket lines across the U.S. swelled Friday as players drawn by a record $640 million Mega Millions jackpot took a chance at becoming an overnight millionaire. The jackpot odds were at 1 in 176 million. (AP Photo/Mel Evans)

December 5, 2012 4:11:37 AM PST
Members of the Assembly Budget Committee are slated to examine a plan to transfer management of the New Jersey State Lottery to a private company.

The state would retain ownership of the lottery under the plan. Officials have said efforts would be made to find work for 150 lottery employees under the new arrangement.

The selected vendor would be required to pay $120 million up front and sign a 15-year contract. The vendor would be responsible if revenue fell below expectations but would realize bigger profits if revenue exceeded targets.

Budget Committee Chairman Vincent Prieto plans to join small business owners and workers to discuss lottery privatization after Wednesday's hearing in Trenton.