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Illinois signs deal to privatize lottery

Illinois LotteryIllinois Lottery: Illinois signs deal to privatize lottery
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Illinois Lottery to become nation's first privately-run lottery

SPRINGFIELD, Ill. — Daily operations of the Illinois Lottery will be managed by a private company beginning in July.

As part of a massive deal that has been in the works for nearly two years, state officials announced Tuesday that they've signed a final deal with Northstar Lottery Group to run the lottery.

Northstar, which is comprised of three companies that already do business with the state, has said it could generate $1.5 billion more over the next five years than what the lottery projects it would normally generate.

The agreement — the first of its kind in the U.S. — comes after state officials dispensed with two lengthy appeals filed by companies that lost out to Northstar.

Greek-based Intralot and Camelot Illinois, which has connections to overseas lottery operations, had both argued the bidding process was flawed.

In a release issued Tuesday, the Illinois Department of Revenue noted that Northstar "was selected based on a rigorous and competitive procurement process."

In making its pitch, Northstar — which consists of GTECH, Scientific Games and Energy BBDO — suggested it could grow the lottery profits through targeted promotions.

Proceeds from the agreement will go toward an ongoing statewide construction program.

"The increase in proceeds will enable the state to maintain its commitment to education, while funding capital projects that will create jobs for thousands of Illinois workers," the agency noted.

The deal calls for Northstar to take over management on the first day of the state's fiscal year, July 1.

"They are gearing up," Department of Revenue spokeswoman Sue Hofer said.

Quad City Times

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14 comments. Last comment 4 years ago by pick4hawk.
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dpoly1's avatar - driver
PA
United States
Member #66141
October 16, 2008
1455 Posts
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Posted: January 19, 2011, 9:40 am - IP Logged

Illinois Lottery going private .......... I am sure that there was absolutely no corruption involved in that Crazy

    Coin Toss's avatar - shape barbed.jpg
    Zeta Reticuli Star System
    United States
    Member #30470
    January 17, 2006
    9167 Posts
    Online
    Posted: January 19, 2011, 10:27 am - IP Logged

    This sounds like a state itself is acting like a jackpot winner who opts for an annuity and then later on decides they want the cash right now.

    Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

    Lep

    There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

      Avatar
      Kentucky
      United States
      Member #32652
      February 14, 2006
      5607 Posts
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      Posted: January 19, 2011, 10:38 am - IP Logged

      This sounds like a state itself is acting like a jackpot winner who opts for an annuity and then later on decides they want the cash right now.

      Does Illinois have a gaming commission that will regulate the lottery and protect the players?

        butterflykt's avatar - Lottery-043.jpg

        United States
        Member #102746
        December 25, 2010
        108 Posts
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        Posted: January 19, 2011, 11:44 am - IP Logged

        Illinois Lottery going private .......... I am sure that there was absolutely no corruption involved in that Crazy

        LOL....I totally agree!

        All things are possible to those that believe!!!!!!Wink

          Littleoldlady's avatar - basket
          Clarksville
          United States
          Member #487
          July 15, 2002
          17638 Posts
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          Posted: January 19, 2011, 11:52 am - IP Logged

          The scary part is that they said they can raise 1.5 Biliion more through "special promotions".  I don't believe that for a second.  After they get through messing with the games, it will be the "players" who spend this additonal money trying to win.

          If you know your number is going to hit, have patience and then KILL IT!

          You never know when you will get another hit.

            JAP69's avatar - Lottery-053.jpg
            South Carolina
            United States
            Member #6
            November 4, 2001
            8514 Posts
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            Posted: January 19, 2011, 12:00 pm - IP Logged

            "has said it could generate $1.5 billion more over the next five years than what the lottery projects it would normally generate."

            _____________________________________________________________________________________

            That statement obviously shines a light on the magement skills of state administrators. I thought they paid big salaries for top people.

            Stats hunting: Type

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
              United States
              Member #30470
              January 17, 2006
              9167 Posts
              Online
              Posted: January 19, 2011, 4:44 pm - IP Logged

              Does Illinois have a gaming commission that will regulate the lottery and protect the players?

              IGB, the Illinois Gaming Board, oversees all gambling in the state.

              Sidenote:

              Every river boat casino has to have an IGB agent onboard, and they are the only person on the boat that is armed (They all come from the state troopers ranks).

              We had a female agent who wore very tight clothing and the question everyday was, "Where does she keep her pistol?"

              Scared

              PS

              The IGB HQs is in Chicago, nogt Springfield, the state capitol.

              What?

              Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

              Lep

              There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                Todd's avatar - Cylon 2.gif
                Chief Bottle Washer
                New Jersey
                United States
                Member #1
                May 31, 2000
                21619 Posts
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                Posted: January 19, 2011, 6:18 pm - IP Logged

                Watch out for computerized drawings as a way to make extra income (by eliminating overhead of real drawing equipment).

                That's the biggest problem I can see.

                If Northstar does the opposite and improves the drawing experience, perhaps by streaming the REAL drawings live on the Internet, and/or making them accessible to the public (like Texas does), then privatizing may be a good thing.  But I fear the opposite will happen.

                 

                Check the State Lottery Report Card
                What grade did your lottery earn?

                 

                Sign the Petition for True Lottery Drawings
                Help eliminate computerized drawings!

                  freeobama's avatar - Lottery-057.jpg
                  Sunny part of town
                  United States
                  Member #102880
                  December 27, 2010
                  224 Posts
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                  Posted: January 19, 2011, 6:52 pm - IP Logged

                  1.5 billion more over the next 5 years will be $300 million more a year.There is a big rotten SHARK in lake Michigan! Evil Looking

                    joshuacloak's avatar - avatar 23415.gif

                    United States
                    Member #32537
                    February 12, 2006
                    640 Posts
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                    Posted: January 19, 2011, 6:56 pm - IP Logged

                    i say all states and their  lotto's everwhere just lost any moral high ground they seemed to had

                     

                    am outraged by this, sense no individuals have the right to a govt monopoly to profit them selfs,  why locking up anyone who try's to do the same as they do

                     

                    How come this Select group of humans, working for their ownprivate investment gain, if its no longer  a govt controled entity!

                    so what morals do the states have anymore , to Let a private group Have A govt Backed by force monopoly over a lottery,


                    If private people now Own the lottery, how come They get to do it, and we Can't just start our own lottery!

                     


                     

                    illinois govt people just got paid off,

                    their govt is in massive debt today, due their to own STUPID actions of the voters who put in idiotic fools in office, they have robbied them selfs of future they have for their kids to be less tax'ed and etc

                    now the idiotic fools have sold even more of their future profits down the road for a little upfront cash

                    they sold massive future profits , i Don't buy we make more money for the govt, anyone with a brain knows you cut out the middle man

                    Not make middle man's!



                    if the lottery wanted more money, they should of just Hired a new  greedy  CEO and said, go nuts , earn as much as you can for our lottery,

                     

                    now that a state govt lets private people have a govt enforced monopoly for these private people to make Tons of moneyfor them selfs,

                    , and their "paying" off the govt to look the other way,and give them a monopoly over it, they Own the market!

                      if it sounds bad, looks bad, Smells bad, ITS BAD , their a saying,  

                    If it smells like a duck. Tastes like a duck. If it looks like a duck and walks like a duck , It's a duck, and this is pure corruption

                     

                    sense all us lottery's are Govt enforced monopoly, they HAD to run it them selfs

                    they can't give individuals monopolys for cash, Thats INSANE idea

                    this has massive moral issue's people,   i don't think they have any idea how much morals they just sold down the river ,. thanks a lot you punks in that state

                    thanks to Illinois voters for putting these people into office, they have just made the Govt the must evil thing alive i have ever seen in united states

                     

                    they now work for private entity, this private entity now has a right to do their own lottery, yet everyone single other human Can't,.cease they paid off the state!

                    their using the state to be their enforcement, this is called, Govt by the  corporations, govt  works now For the Corporations,

                    this is IN YOUR FACE PROOF, of it, 

                     

                    if you don't understand my point, let me put it to you this way

                    if i moved to Illinois , and Started my own lottery, saying, i have the right to as will, as you allow these individualsclowns  to have their own private owned lottery, why can't i have the same right to run my own lottery

                    they Can't object by morals , but they will,  as they now get paid by a large Corporation, to  arrest made me, and put me in jail,  its a govt backed monopoly,   its pure moral  bankruptcy by a govt, Everyone in the united states has the same rights, if these private individuals have the right to their own lottery, I DO TOO

                     

                    i don't live in the false world of rights come form the govt, 

                    i live in the world of individuals have all rights onto them selfs

                    , govt are just their to make sure we don't kill/harm each other

                     

                    if ANY one individual has the right to do something, THEN I HAVE THE SAME RIGHT, its called   freedom ,   

                    in united states, all individuals have the SAME RIGHTS, onless they give up rights  them selfs, as so many idiots do in todays world

                     

                    so as the govt gets paid off to let Some  individuals have rights  to a lottery,

                    yet they close down, put others in jail who Dare try to  think they have the same rights as everyone else, we have EVIL in your foce Money buys govt happening NOW

                     

                    so the very idea, some individuals have the right to their own monopoly of anything, thanks to them paying off the govt, makes me Go Mad with outrage,

                     

                    no govt should be allowed to give some indivuduals a monopoly to anything, 

                     

                     

                    if anyone try's to make a point and gets locked up in Illinois for trying to make their own joke of a lottery started, i can't stand by the govt, i have to side with the outlaw who tryed to make their own lottery, as no ONE has more rights then each other, these Illinois  folks, have just given some rich individuals the rights others do have, THIS IS BULL , IT  will never stand in the moral ground of right and wrong,  no one has more rights then me,  if they have the right to  a lottery, now we all have a right to  a lottery

                     

                    govt working for private individuals , giving them a monopoly, backed by threat/force of govt power for these private individuals own INRICHEMENT, as they "PAID OFF" the govt,  makes youe state the must corrupt State of the 50 states, congrats, you set a new low Illinois

                      freeobama's avatar - Lottery-057.jpg
                      Sunny part of town
                      United States
                      Member #102880
                      December 27, 2010
                      224 Posts
                      Offline
                      Posted: January 19, 2011, 7:07 pm - IP Logged

                      Every lottery have a governing body,even big games like Powerball and Mega Millions. Their are people who play and continue to play these games for years just to have a winning jackpot quick pick ticket spit out of a machine thousands of miles away, brought by some player who never played or only play when the pot gets to $200+ millions. Got to love that, but when it all broils down its just a game!!!Patriot

                        pick4hawk's avatar - Trek HAND3.gif

                        United States
                        Member #19982
                        August 9, 2005
                        225 Posts
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                        Posted: January 19, 2011, 7:58 pm - IP Logged

                        I pray they don't take over because it would mean another state becoming and RNG run state.

                        I myself would never play again --like many other people.

                        HAWK

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                          NASHVILLE, TENN
                          United States
                          Member #33372
                          February 20, 2006
                          1023 Posts
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                          Posted: January 19, 2011, 7:59 pm - IP Logged

                          Going to RNG was my first thought after I read the article.  If IGB does go computer, this move will only solidy my feelings about RNG's and Lotto.

                            pick4hawk's avatar - Trek HAND3.gif

                            United States
                            Member #19982
                            August 9, 2005
                            225 Posts
                            Offline
                            Posted: January 19, 2011, 8:05 pm - IP Logged

                            Watch out for computerized drawings as a way to make extra income (by eliminating overhead of real drawing equipment).

                            That's the biggest problem I can see.

                            If Northstar does the opposite and improves the drawing experience, perhaps by streaming the REAL drawings live on the Internet, and/or making them accessible to the public (like Texas does), then privatizing may be a good thing.  But I fear the opposite will happen.

                            I agree with todd:

                            Illinois will become an RNG run state because GTECH is involved.

                            This will suck for the viewing public who currently watch every game.

                            True physical games are the best!

                            HAWK