Jessica Andreato and Tommaso Vivian
The decision of privatizing the lottery company can be consideredcontroversatial for different reasons:
➢ Because of the type of company and the sector in whichit’s involved that is complicated and controversatialitself for ethical and moral hazard;
➢ Because in this way the State could get less money ifwe consider a long time span;
➢ Of course the government will lose at least a part of itscontrol and power about all the decisions taken by the company (important is the decision to keep a figure thatcontrols them);
➢ Putting the company in a situation of competition can push the company to spread the gambling around more population than before;
➢ Public opinion can be frustrated about this movement;
➢ Generally there’s the risk for the government to lose the concept of equality and continuity in order to researchpublic utility.
Pros: instant incoming cash flow for the state balance, more efficiency in the company because of the competition, openess to the market.
Cons: less revenue in the long run, more social hazard, possible criticism from public opinion and from political opponents.