Yesterday I wrote about the fact that the University of Minnesota lost $16,000 selling beer to football fans. The problem was that it was a government organization with no real experience in the real world that was negotiating and “managing” the vender contract for selling alcohol at University football games.
Now we see that it is not just the university that has trouble managing money in Minnesota. Funding that was supposed to come from charitable gaming in bars across the state did not materialize. Projected profits were astronomical. According to the Minneapolis Star Tribune (March 24, 2013), “The botched projections showing that electronic pulltab sales would explode in Minnesota and immediately start paying for a new Minnesota Vikings stadium were based largely on estimates made by gambling businesses with a vested interest in the new but untested form of charitable gaming.”
So, let’s put this in focus. The state used projections from the gaming industry to determine expected profit. Apparently no one in state government noticed that those most likely to benefit from exaggerated profit projections were the businesses that were in line to supply gambling equipment and “expertise” to the state. Once again, the state’s negotiators have failed the citizens of the state.
This failure comes on the back of failures by state regulators who failed to approve various venders and types of gambling equipment in a timely way. For the first year of supposed operation, only a fraction of expected venders and equipment were approved by regulators. After the Star Tribune made note of this a few weeks ago, regulators got to work and signed off on a few more approvals. Too little, too late.
It is not my intent to belittle one state or one state’s negotiators and regulators. They have done that by themselves. It IS my intent to belittle all government organizations which claim that they can right the wrongs of society and make life better for all when they can’t find their way out of a paper bag.