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Powerball Lawsuit Moved To Pueblo

Lottery Officials Say Powerball Start Not In Jeopardy

A judge ruled Wednesday that a lawsuit aimed at blocking the multistate lottery game Powerball should be transferred to a Pueblo court, prolonging the litigation just eight days before tickets for the game go on sale.

District Judge J. Stephen Phillips granted a request by the Colorado Lottery Commission to move the proceedings out of Denver, saying he was concerned that many witnesses in the case are in Pueblo where the Colorado Lottery is headquartered.

No date for another hearing was set, and it was not determined which judge would hear the case.

Colorado Lottery Executive Director Mark Zamarripa said that the pending lawsuit will not affect plans to start selling Powerball tickets on Aug. 2 for a drawing two days later unless a judge orders the game to stop.

"We'll continue with our plans," Zamarripa said. "We're ready to launch on Aug. 2, barring any changes or direction from the court."

The lawsuit was filed in June by Sen. Doug Lamborn, R-Colorado Springs. He claims Powerball violates the state constitution in the way it directs revenue from the game and in how it is supervised.

"I'm disappointed," Lamborn said after Wednesday's hearing. "But we'll do whatever it takes to follow the law and the court's direction. I'd rather resolve it before tickets go on sale."

His attorney, Michael Norton, had argued against moving the case, saying that several lawmakers and politicians in Denver also would be witnesses.

Voters in November narrowly approved a referendum allowing Colorado to participate in a multistate lottery. Lottery officials chose Powerball, which is offered in 20 other states and the District of Columbia.

At the time, they projected that the game would begin in September. Last week they announced the game would start ahead of schedule.

The game has a $10 million minimum jackpot for matching five numbers plus the "Powerball" number. Lottery officials say the chances of winning the Powerball jackpot are about one in 80 million.

Proceeds from the sale of Colorado Powerball tickets will go to the Lottery's current proceeds recipients: the Conservation Trust Fund, State Parks, and Great Outdoors Colorado (GOCO) Trust Fund.

If the GOCO fund exceeds its cap of about $44 million, spillover will be directed to public schools to address health and safety issues under a bill that was passed by the Legislature.

Lamborn claims that funding structure violates provisions in the state constitution that direct spillover revenue to the state General Fund.

He also claims that Powerball falls short of the constitution's provisions requiring state supervision of lottery games. Lottery officials say Powerball will be supervised by Colorado officials rather than officials who manage the multistate lottery from Iowa.

"You can't play fast and loose with the constitution," Lamborn said. "You have to amend it properly."

He is seeking to temporarily block the game and ultimately void it but the legal battle could become more difficult after the game begins.

Norton acknowledged that a judge might be more reluctant to block the game once tickets are on sale. He said he is hopeful the lawsuit will prevail on constitutional grounds.

Meanwhile, lottery officials are going forward with the plans.

"We know the players want this game," Lottery spokesman Todd Greco said. "They call us every day."

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