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Call For Federal Investigation Into New Jersey Lottery Privatization

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David Madden David Madden
David Madden is a Philadelphia native with virtually a lifetime of...
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By David Madden

TRENTON, N.J. (CBS) – There’s a call for the feds to look into a plan to hand operation of the New Jersey Lottery over to a private company.

Last week, quietly, the Christie Administration announced plans to sign a 15 year deal with the Northstar New Jersey Lottery Group to cover sales and marketing.

It comes with a $120 million down payment, which has the Democratic side of the state’s congressional delegation asking questions.

Rob Andrews is one of six members requesting a review from federal Attorney General Eric Holder, offering up a 4-year-old Justice Department ruling.

“Lotteries should not go forward with privatization if there’s a huge upfront payment and the reason is to be sure that the bid process is far and protects the taxpayers,” says Andrews.

The letter seeks an answer from Holder by the end of a two week public review period on the plan, which expires on Thursday.

State officials are confident the deal will meet legal muster. Andrews says Holder could hold it up if he doesn’t agree.

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