Did you hear the one about Mitch Daniels having to give up his dream to privatize the Hoosier Lottery cuz it would totally be illegal?

Gov. Mitch Daniels said Friday that he is dropping the idea of privatizing the Hoosier Lottery as an option of funding a college scholarship program after the U.S. Department of Justice said such a move would not comply with federal law.

The Oct. 16 opinion, which Daniels’ office said was requested by Indiana and New Jersey, says states would not comply with federal law if they enter into long-term private management agreements to operate their lotteries.

The opinion was issued because several states, including California, New Jersey, Illinois, Colorado, Florida, Michigan, Texas, New York, and Indiana, have proposed the long-term lease of their state lotteries in order to fund investments ranging from infrastructure to education.

D’oh!