Taxpayers pay millions in bonuses to outgoing lottery firm's staff
Illinois taxpayers have funded about $2 million in retention bonuses for employees of a private firm managing the lottery despite the firm performing so poorly Illinois is working to replace it.
A Tribune investigation has found the state approved paying bonuses as part of a complicated deal it struck in 2015 with the firm, Northstar Lottery Group. Northstar agreed to end its 10-year deal early if the state met a host of conditions, including paying Northstar disentanglement fees, which inclu ...
Mar 29, 2017, 9:21 am - Lottery News forum
Illinois Lottery private manager still on job after firing
Finding a new lottery manager proves tricky for state government
When Illinois lawmakers voted in 2009 to hire a private company to run the state's $2 billion-a-year lottery, they had high hopes of making more money that could be funneled into education and construction projects.
Then the company missed sales goals, and two governors tried to fire Northstar Lottery Group. But Northstar remains on the job more than two years later, and the firm is now able to collect millions of dollars mor ...
Mar 28, 2017, 4:21 pm - Lottery News forum
Lawsuit alleges Illinois lottery contractor cheated players, vendors
A company hired to manage the Illinois Lottery cheated players and lottery vendors by misrepresenting the odds of winning scratch-off games, a class-action lawsuit in federal court alleges.
The case, originally filed last month in St. Clair County Court, was removed last week to federal court in the Southern District of Illinois. The lead plaintiffs are Raqqa Inc., which operates Fairview Lounge, a bar, convenience mart and gas station at 10610 Lincoln Trail in Fairview Heights; and Michael C ...
Mar 13, 2017, 8:07 am - Lottery News forum
Ontario Lottery scraps privatization plan
The Canadian province of Ontario has scrapped plans to privatize its state-run lottery business.
In a statement issued on Friday, the Ontario Lottery and Gaming Corp (OLG) announced that it had cancelled its request for proposals (RFP) for private operators interested in taking over management of its lottery operations, which generated sales of C$3.8b (US$2.9b) in fiscal 2015-16.
Ontario's ruling Liberal government had issued the RFP in 2014, which generated bids from established gaming co ...
Sep 26, 2016, 8:38 pm - Lottery News forum
NJ Lottery private operator on track to meet budget projections
Turnaround for Northstar after two years of missed targets
Increased sales mean New Jersey's lottery contribution to the state budget is on track to meet its target for 2016 after falling short the first two years of a long-term contract with a private operator.
The operator of the lottery's sales and marketing, Northstar New Jersey, is budgeted to return $1 billion to the state to help fund programs for education, disabled veterans and senior citizens. Through the first three months of th ...
Oct 16, 2015, 10:22 am - Lottery News forum
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