Labor unions protest to Treasury over Lottery deal

TRENTON – The latest attempt to prevent the privatization of the N.J. Lottery comes from the labor unions.

The Communications Workers of America, AFL-CIO and CWA Locals 1033 and 1037 have sent a letter of protest to the Treasury Department over the plans to allow a private operator to run the Lottery.

Last week, the state announced it would award a 15-year contract to Northstar, which is composed of Rhode Island-based GTECH Corp., Georgia-based Scientific Games International of Alpharetta and OSI LTT NJ Holdings.

“We already know that Christie’s lottery privatization is going to cost jobs, send profits overseas and be a horrible deal for taxpayers. The sad fact is that this scheme is also illegal,” said Seth Hahn, Legislative and Political Director for CWA NJ.

“The Christie Administration wants to award an extremely profitable public asset to a politically-connected firm with a history of fraud and abuse. To make matters worse, this inside deal clearly violates the New Jersey State Constitution and betrays the public interest.”

On Wednesday, a coalition of six N.J. congressmen came out in favor of a review of the contract by the Justice Department, questioning the propriety of an upfront $120 million payment for New Jersey.

The labor organizations argued in their letter today that state law specifically mandates the Lottery be operated by the state.

“Yet, this deal allows a private company to have the lion’s share of operational control over what was always intended to be a state-run lottery,” they argue in their joint release.

Labor unions protest to Treasury over Lottery deal