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Illinois Lottery solicits companies for privatization

Illinois LotteryIllinois Lottery: Illinois Lottery solicits companies for privatization

Lottery seeks 'private manager' to solve many of it problems

SPRINGFIELD, Ill. — The Illinois Lottery today asked private firms for expressions of interest in managing its operations for a period of up to 10 years.

The Illinois General Assembly mandated private management of the Lottery in late 2009. Initial expressions of interest are due May 24 and the private manager is expected to be named before the end of the year.

The General Assembly mandated private management of the Lottery, together with sale of Lottery tickets on the Internet, as part of a plan to increase Lottery revenues. Proceeds from the Lottery, which is the fifth largest revenue generator for the State, are used to support education and will form a significant part of the funding for the State's new capital projects program. The Lottery generated $2 billion in revenue and $630 million in free cash flow for the State during fiscal year 2009. Since 1974, the Lottery has contributed nearly $15 billion to the State's Common School Fund, and it currently contributes 9 percent of the State's contribution to the school fund.

While the Lottery has been successful, its per capita sales are below average for U.S. lotteries and it faces increasing competition from other forms of gaming. A private manager is expected to provide the capital and know how to increase sales and meet competition. The State expects the private manager to focus on winning business from new, infrequent and lapsed Lottery players.

"Illinois has been struggling with outdated hardware and software programs," said Jodie Winnett, Acting Superintendent of the Illinois Lottery. "The private manager will provide funding for state-of-the-art technology that will allow for more exciting games and customer interaction while reducing costs. The private manager also will be expected to introduce best practices in management, marketing and socially responsible gaming."

Winnett added, "The private manager will provide the expertise necessary to bring the Lottery to the Internet, which the General Assembly has mandated under a pilot program pursuant to Federal authority. This will open a channel that will connect the Lottery with a large group of new customers — many of them younger — who prefer to play on-line."

An increasing number of States and foreign governments have been hiring private firms to improve the operations of their lotteries. A copy of the Request for Expressions of Interest is available on the Illinois Procurement Bulletin at www.purchase.state.il.us.

Press Release

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3 comments. Last comment 7 years ago by Gozimus.
Page 1 of 1
ca-dreamin*'s avatar - Lottery-065.jpg
Chicago
United States
Member #70678
February 8, 2009
889 Posts
Offline
Posted: May 13, 2010, 8:32 pm - IP Logged

ME!!! ME!!! MEEE!!!! LOL

Ok is this a case of pass the buck??? The General Assembly can't solve the problems on its own so let an outsider do it????

    grandmadec's avatar - Lottery-018.jpg
    Ohio
    United States
    Member #29819
    January 7, 2006
    1243 Posts
    Offline
    Posted: May 14, 2010, 12:14 am - IP Logged

    They said buy lottery on the internet.  Does this mean you can legally buy IL tickets on the internet if you live in another state?  Are other states doing this now?  That would be great if we could do that now.  Hopefully they are talking about pick 3, pick 4 and other games like this!

      Gozimus's avatar - BigBoo
      New Member
      Chicago, IL
      United States
      Member #91980
      May 29, 2010
      2 Posts
      Offline
      Posted: May 29, 2010, 9:11 am - IP Logged

      I can tell that the scratch offs have already been privatized.  There's absolutely no winnings to be had this year.  Last year was fun and fantastic!  But i can tell that Illinois financial woes are impacting the winning results.  They're getting greedy and killing the golden goose by NEVER letting us win anymore.  Thanks, Illinois.  Once again you disappoint me severly.  No more fun with scratch offs, I'm not buying anymore because you won't let me win anymore.