Private company to take over marketing, sales, other functions
Scientific Games Corporation today announced that Northstar New Jersey Lottery Group, LLC ("Northstar NJ") has signed a long-term agreement to provide marketing, sales and other services to the New Jersey Lottery.
Services under the agreement are expected to begin on October 1, 2013 following a transition period and end on June 30, 2029.
Northstar NJ is a joint venture comprised of Scientific Games New Jersey LLC, a subsidiary of Scientific Games Corporation, GTECH Corporation, a subsidiary of GTECH S.p.A. ("GTECH"), and OSI LTT NJ Grantor Trust ("OSI"), an affiliated entity of OMERS Administration Corporation, the administrator of the Ontario Municipal Employees Retirement System pension funds (OMERS).
Scientific Games New Jersey, LLC owns approximately 18% of Northstar NJ. An entity comprised of GTECH and OSI owns approximately 82% of Northstar NJ.
Northstar NJ will provide a wide range of specialized services to the Lottery that will focus on strengthening its marketing and sales functions and will include support for lottery game development, marketing and advertising, as well as the procurement of related goods and services. All of these activities will be subject to control and oversight by the Lottery.
Under the terms of the agreement, Northstar NJ will be entitled to receive annual incentive compensation to the extent the Lottery's net income for the applicable year exceeds specified target levels, subject to a cap of 5% of such net income.
Northstar NJ will be responsible for payments to the State to the extent the Lottery net income targets set forth in Northstar NJ's successful bid are not achieved, subject to a cap of 2% of the applicable year's net income and a $20 million shortfall payment credit.
Upon execution of this agreement, Northstar NJ made a $120 million payment to the State, and Northstar NJ has committed to ensuring that at least 30% of annual lottery ticket revenues will be transferred to State institutions and State aid for education.
Under separate supply agreements, Scientific Games and GTECH will provide Northstar NJ with instant lottery games, lottery systems and equipment, and related services. Scientific Games is expected to have a 30 percent economic interest (and be responsible for 30 percent of the capital requirements) associated with these supply arrangements.
"We look forward to working with the New Jersey Lottery, with whom we have a good working relationship, to responsibly grow lottery revenue for the State," stated A. Lorne Weil, Chairman and Chief Executive Officer of Scientific Games. "We applaud the Lottery for its innovative business model, which will bring in significant resources in terms of capital, talent and entertaining products, to help establish the New Jersey Lottery as an industry leader in terms of both performance and innovation."
From the OP:
Northstar NJ will provide a wide range of specialized services to the Lottery that will focus on strengthening its marketing and sales functions and will include support for lottery game development, marketing and advertising, as well as the procurement of related goods and services.
Good luck Jersey. Expect to see innovative ways of changing $1 games into $2 games. In Illinois it's all at the players' option so far but definitley can double what you've been playing. For one example, the Pick 5 was once a day, now it's twice. Also has an option called EZ Match......so what would have been a $1 play in the past would now be a $4 play if a player played both daily drawings and an EZ Match.
Also look for a lot less $1 scratchers and all scratchers to be tighter.
In games where you have to get a number to win, say a 5 or 7 or 9, prior to North Star all the numvers on the ticket would be single digits. Now in those same games there will be numbers in the teens and twentys.
These people are definitley marketers and promoters but what they are promoting is their own 'enhancements'.
I think we'll be seeing a lot more of these
from LP players in Jersey.
Sometimes change is good because they need to fix some things.
1 Marketing. Pedros win should of been the first thing you see on the NJ lotto site, not some new scratcher games. Also mention every second place ticket that they sell.
2 Certain second chance scratchoff games require entering 10$ worth of losing tickets. If you have a 5$ ticket left over, you can't use it. Has to be exactly 10$ worth.
Illinois has a $5 scratch off ticket called Powerball and another called Mega Millions.You're gaurenteed to be a winner,if you call a break even ticket a winner or you might win a $1 Mega Million ticket or a $2 Powerball ticket.Personaly,I'd rather buy my own Mega Million or Powerball ticket...they'd be cheaper.So much for privateitizing the lottery,they are bigger crooks than the two former Govenors that are doing time!
that's not true there could be many uses for them 5.00 losing scratch tickets, maybe you can scrap the ice off you car window this winter with them
CLETU$,
I think those Illinois MM and PB guaranteed winner tickets are a real trap. The most common result is you paid $5 for a $1 MM ticket or a $2 PB ticket.
Yep,that was my point.
tx is 2nite
Cointoss,
I hope you're wrong about the pick 5, could be a deal breaker for me.
The game started out once a week then 2x a week then 3x then 5x and now 7x
I've been playing the same #set over 10 years, had lot's of 3/5 and three 4/5.
But this would at least double my outlay.
I would have to give up my #set and just play a QP now and then when the JP gets in the high range.
If there are others thinking like me, they could ruin the game.
What is EZ match ?
I hope that Northstar will be able to increase the sales of lottery therefore they can provide a good revenue to the state. I agree that changes brings good things to the establishments. Areas of concerns will be address by the new management.