Illinois Lottery cuts ties with private manager
The split between the Illinois Lottery and its private manager, Northstar Lottery Group, is now official after three years of acrimony over lower-than-expected revenues.
The termination agreement, signed Tuesday by Gov. Pat Quinn, comes a little more than three months after he directed lottery officials to sever ties with the company after it fell short of promised revenues for the third consecutive year.
At the time, the company had posted record profits to the state, but those figures st ...
Dec 10, 2014, 9:11 pm - Lottery News forum
With Northstar terminated, what will the Illinois Lottery do now?
So what's next for the Illinois Lottery?
That's the big question looming in the wake of Illinois Gov. Pat Quinn's politically-expedient move late last week to fire Northstar Lottery Group. Quinn made history late in 2010 when he inked a 10-year contract with Northstar to become the first-ever private manager of any state lottery in the nation. Two other states now have private lottery managers Indiana and New Jersey.
Quinn's move last week to terminate Northstar may prove too little too la ...
Aug 23, 2014, 10:27 pm - Lottery News forum
Illinois to fire private lottery operator
The bumpy marriage between the state and the private company that operates the Illinois Lottery is ending in a divorce.
Gov. Pat Quinn's office confirmed to me today that it is ending its contract with Northstar Lottery Group LLC to operate the $2 billion-a-year lottery system, seven years earlier than scheduled.
It is not yet certain whether the separation will be voluntary by both parties, but a decision to end the contract has been made.
The governor's office has directed the lotter ...
Aug 23, 2014, 10:20 pm - Lottery News forum
NJ court rules against union's effort to stop state lottery privatization
A state appeals court last week ruled against a public workers union in its effort to stop New Jersey from privatizing parts of the state lottery.
Despite months of objections from Democratic lawmakers and union leaders, the state announced last June that it signed a 15-year contract for a private company, Northstar New Jersey, to manage the sales and marketing branches of the lottery. Gov. Chris Christie's administration said the move will bring New Jersey a surge in revenue.
But the Comm ...
Jul 8, 2014, 7:27 am - Lottery News forum
Illinois legislator urges Gov. to fire company running the lottery
Northstar disagrees, says revenue targets met
Citing nearly three years of lackluster performance, an Illinois state lawmaker is urging Governor Pat Quinn to fire the company his administration hired to run the Illinois Lottery.
State Rep. Jack Franks, D-Marengo, said the state's contract with Northstar Lottery Group has cost taxpayers hundreds of millions in lost revenues due to the firm's failure to meet revenue goals.
The privatization of the Illinois State Lottery has been nothing ...
May 15, 2014, 12:13 pm - Lottery News forum
Pennsylvania will not privatize lottery
Pennsylvania is scrapping a deal with a U.K.-based company to privatize management of the state's lottery system, Governor Tom Corbett said on Monday.
The state struck a deal more than a year ago with Camelot Global Services LLC, a subsidiary of Britain's national lottery operator, Camelot Group PLC, to guarantee $34.6 billion in payments to the state over 20 years to manage the Pennsylvania lottery.
But Corbett's administration repeatedly had to extend the contract after Pennsylvania Atto ...
Dec 31, 2013, 8:43 am - Lottery News forum
Pennsylvania Senate may work privatization deal
But solution may not come until 2014
There is broad support among Senate Republicans to give the governor authority for a private company to manage the Pennsylvania Lottery and legalize electronic games such as keno to boost state revenue, the Senate majority leader said on Monday.
But quick action in the Legislature appears unlikely, said Sen. Dominic Pileggi, R-Delaware County. He didn't rule out a vote on Tuesday but noted long odds against that happening. Many senators want further vet ...
Dec 10, 2013, 7:57 am - Lottery News forum
Pa. Gov. extends lottery privatization contract
Gov. Tom Corbett's administration will continue its examination into the privatization of the management of the Pennsylvania Lottery for two more months.
The administration announced Tuesday that United Kingdom-based Camelot Global Services has agreed for an 11th time to extend its bid's expiration date, which was set to expire today. It now is good through Dec. 31.
Camelot, the lone company to submit a bid, committed to generating $34.6 billion in profits to fund lottery-funded programs f ...
Oct 30, 2013, 11:30 am - Lottery News forum
Pa. Gov. defends lottery privatization exploration
If privatizing the Pennsylvania Lottery's management isn't the answer to ensuring reliable and predictable funding for programs for older Pennsylvanians, what is?
That's the question that a spokesman for Gov. Tom Corbett raised in responding to state Treasurer Rob McCord call on Monday to pull the plug on the administration's lottery private management agreement (PMA) pursuit.
Our need is outpacing our ability to fund those programs, said Corbett press secretary Jay Pagni. The PMA is a ve ...
Oct 29, 2013, 8:10 am - Lottery News forum
Pa. Lottery privatization pursuit nears another deadline
Treasurer Rob McCord urges Corbett to drop the idea
The price tag for exploring Gov. Tom Corbett's idea for outsourcing management of the Pennsylvania Lottery has crossed the $4 million threshold and is marching toward the $5 million mark.
Recent revisions to the contract with the administration's outside legal advisers, DLA Piper, alone now allow it to be paid as much as $3.4 million.
That is up from the original $375,000 cap set when the firm was hired in March 2012 and has steadily r ...
Oct 28, 2013, 8:45 pm - Lottery News forum