STERLING State lotteries exist for one and only one reason -- to raise revenue for some worthy public purpose, such as education. Over the past year, many states have begun looking to the private sector to determine how better to increase the revenue their lotteries yield. Recently, I introduced legislation that would examine the advisability of shifting the management of the Virginia Lottery from the public to the private sector, in order to generate more money for schools -- without raising taxes or reducing funding for other important programs.

Among state lotteries, Virginia's is neither particularly good nor particularly bad. The lottery generated just over $437 million for education last year. During the past decade, inflation-adjusted profits have remained flat. The Virginia Lottery ranks 33rd out of 44 lotteries in retailer penetration; sales have been stagnant during the past 10 years; profits declined by 4 percent last year; and per-capita sales rank 15th. Moreover, the lottery's operating costs in 2007 were $68 million, above that of many neighboring states.

Under continued state operation, the value of the Virginia Lottery during a 40-year period is estimated to be approximately $4 billion. Many private companies believe they can do a better job running the lottery and are willing to pay us considerably more -- possibly as much as $7 billion -- for the right to try.

Given the needs our schools face, to say nothing of the challenges confronting our economy, I believe we at least ought to find out what the lottery is worth, see if private-sector management can generate more revenue than we can produce on our own, and use that information to decide whether the lottery should operate as a government-run public agency or a government-regulated private entity.

LOTTERY TICKETS today are primarily sold by such retailers as gas stations and convenience stores. Consequently, our lottery tends to be disproportionately representative of the lower-income consumers who frequent such establishments.

Private companies are willing to pay Virginia more than it now earns from the lottery because they believe they can sell tickets to people who don't currently play the lottery. By shifting the retailer network to establishments like big-box retailers and high-end restaurant chains, the player base shifts from mostly lower-income consumers to more upper-income consumers. This ends up being better from both a business and public policy standpoint.

So why can't the lottery just shift the retailer base on its own, behaving less like a bureaucracy and more like a business? Because that's not what government does.

Successfully running a retail gaming operation requires a significant investment of talent, focus, and financial resources. It requires not only an ability to adjust quickly and nimbly to changing markets and opportunities but also leadership that will likely remain stable over of time. Yes, sufficient resources, talent, and attention could be invested by the commonwealth to improve lottery performance, but at what cost?

If Virginia's top officials were to begin paying more attention to the lottery, it would inevitably distract them from higher priorities like education, health care, and public safety. What benefit could possibly ever come from assigning retail gaming a higher priority than any of the other things government does? And more important, why settle for anything less than the full measure of what the lottery is capable of producing -- especially in the face of mounting financial pressures in our schools -- just so it can continue to be operated as a state agency?

SOME HAVE argued that Virginia's schools are doing just fine the way the lottery operates now and that, if it were to become privately operated, the schools might get hurt. While the chances of that are no more likely whether the lottery is run privately or publicly, I believe strongly that the only reason we should ever consider changing the lottery's management is so that schools can get more revenue than they do today.

Leasing the lottery could mean as much as $200 million more annually for schools. And if Virginia were to contract with a private-sector lottery operator, these payments would be contractually guaranteed. Given that last year's transfer to education was $437 million, a potential 46 percent boost in yearly revenues merits serious consideration.

More money for schools, a less regressive lottery, and a government focused on the primary needs of its citizens, rather than trying to do something for which it is not well-suited: That's what this idea has to offer.

At a time when many Virginians find themselves stretched beyond their means, and our schools are more cash-strapped than ever, we owe ourselves -- and the children of the commonwealth -- nothing less.
David E. Poisson (D) of Loudoun County represents the 32nd District in the Virginia House of Delegates, serving on the House Counties, Cities, and Towns and Militia, Police, and Public Safety committees. Contact him at (703) 421-6899 or deldpoisson@house.state.va.us.