Minnesota Lottery Director Ed Van Petten unexpectedly resigned December 18 following a Minneapolis Star Tribune report that he had been reimbursed for more than $7,000 after he and staff stayed at his personal timeshare units during conferences in Las Vegas, New Orleans and Atlantic City. Van Petten said although he did not own the units, “there is a rule. There is no ownership interest whatsoever, but it appears that way.”
He stated using the timeshares actually saved the state money but he may have violated a state policy disallowing employees to be reimbursed for stays at “personally owned property.”
Van Petten said, “I didn’t see that it would be an issue” and was not asked to leave, but offered his resignation to Governor Mark Dayton. “It’s best just to nip it in the bud,” Van Petten said. Dayton later noted he would have asked Van Petten to leave.
Dayton defended the state lottery, noting it was a well-run agency. But he added Van Petten’s resignation was “warranted” given the questions about his expenses and said the state’s legislative auditor would launch a thorough investigation into employees’ travel expenses.
Van Petten led the Kansas Lottery for 11 years before Dayton appointed him to direct the Minnesota Lottery in 2012. This summer state legislators ordered the agency to stop allowing lottery ticket sales online and at gas pumps and ATMs, which Van Petten spearheaded without consulting lawmakers. In May, former Lottery official Johnene Canfield sued the lottery, alleging Van Petten and others had encouraged her to drink before she was fired for appearing intoxicated in public while on the job on numerous occasions.
The state will start a search immediately to replace Van Petten.
