Illinois fires lottery operator Northstar
Will continue to operate lottery for more than a year
The nation's first private company to manage a state lottery was fired Friday by the Illinois Governor after years of failing to make the lofty revenue targets it promised.
In a news release Friday, Gov. Bruce Rauner announced that his office had reached a termination agreement with Northstar Lottery Group that will remove the firm as private manager as of Jan. 1, 2017, or until a replacement is chosen.
The agreement also stipulated ...
Sep 19, 2015, 10:48 am - Lottery News forum
Ohio Lottery to conduct review of operations
Not a move to privatization, officials say
State officials say there are no plans to privatize the Ohio Lottery Commission amid a pending top-to-bottom review of its management and a document holding out privatized state lotteries as models of interest.
A state request for proposals issued on Aug. 24 seeks a consultant to conduct a comprehensive review of the lottery and recommend ways to contain costs and maximize profits, which largely are routed to public schools.
One part of the do ...
Sep 3, 2015, 7:39 am - Lottery News forum
Private management could be Alabama lottery option
If Alabama gets a lottery, private management may at least be an option.
But the Republican leader of the Senate said Wednesday he did not want to commit to any particular proposal, being wary of some of the negative experiences of other states with private managers.
Having no experience in the lottery field, we're just going to have to look at what other states have done and what's worked best for them, he said.
Marsh is sponsoring legislation that would establish a lottery and gambli ...
May 22, 2015, 7:17 pm - Lottery News forum
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