The company hired to run the Illinois Lottery continued its fight to keep some documents under wraps, arguing their release would violate its contract with the state and expose company secrets to competitors.
At a hearing before the Illinois Court of Claims, Northstar Lottery Group argued today that lottery officials have no duty to release a marketing study and a business plan even though the Illinois Attorney General has advised the documents should be made public.
The firm asked the court — a quasi-judicial body of seven appointed judges who hear disputes involving the state — to issue a temporary restraining order and protective order barring the release of the records. Northstar Attorney Eric Macey argued the contract requires lottery officials to fight any effort to obtain confidential information supplied by Northstar.
"The state has made a covenant with us — an express promise — to do everything they can to protect (our) confidential information," Macey said. "What are they doing here? They're saying, 'We're releasing it voluntarily."
Assistant Attorney General Michael Schnitzer, representing the lottery, said the court doesn't have the authority to issue restraining orders or protective orders. The state's taxpayers have a right to review the company's operations and activities, he said.
"We're talking about two documents that were paid for by the people of Illinois," Schnitzer said, noting that the state pays the company millions for operational expenses. "The people want to — and have a right to — know what Northstar is doing with this money."
This is the second suit the company has filed to prevent disclosure of the documents, which were sought through separate requests under the Illinois Freedom of Information Act by the Chicago Tribune and Crain's Chicago Business. In March, a Cook County Circuit Court judge denied Northstar's petition for a temporary restraining order. Days later, the company filed the current suit with the Court of Claims.
On Monday, only four of the seven-member panel were present at the hearing in the James R. Thompson Center in Chicago. One judge was sick, while two others recused themselves.
Judge Mary Patricia Burns, a partner at the politically connected law firm Burke Burns & Pinelli, Ltd., was hired by Northstar last year to help resolve a financial dispute between the firm and the lottery, according to documents obtained by the Tribune.
In an e-mail to the newspaper, Burns declined to discuss her work with Northstar, but said she recused herself the day the suit was filed. Chief Judge Robert Sprague also recused himself because he is working with Macey on an unrelated case, said court administrator Brad Bucher.
The court did not rule Monday, but took the matter under advisement. It was unclear when a ruling might be released.
Northstar was chosen by Gov. Pat Quinn in 2010 to become the nation's first private manager of a state lottery and formally took control the following year. Since then, it has failed to meet revenue goals in the 2012 and 2013 fiscal years. Last month, a lottery official said the firm was on track to fall short of revenue targets for the third straight year.
Gee, have something to hide huh?.
Does it make you wonder, what they are hiding? Information that is Proprietary is one thing, but trying to hide something else, like bonuses or test draws, is a different story. That should be public knowledge. When anyone attempts to keep information from the public, I get worried. The people in Washington are up to their eyeballs, hiding information, from the public. Florida doesn't publish the test draws, which I think they should.
At a hearing before the Illinois Court of Claims, Northstar Lottery Group argued today that lottery officials have no duty to release a marketing study and a business plan even though the Illinois Attorney General has advised the documents should be made public.
So you got this half-half public private thing going on, which one is it? A public non-profit entity run for and by the people, or an independent private for profit corporation? And you gave them your monopoly power no less.
Like a wise man once said: You do private company "yes" or private company "no." You do private company "guess so" ... SQUISH!!! ... just like grape.
From the OP:
Northstar was chosen by Gov. Pat Quinn in 2010 to become the nation's first private manager of a state lottery and formally took control the following year.
I don't think either Quinn or Northstar are exactly trustworthy. Quinn was Lt. Governor when former Gov. Blagojevich went to jail, and "Blago" warned everybody some of the things that woyuld happen once he was removed from office.
Quite a few of them have happened, state pension funds being a prime example.
As for Northstar they've basically just tightened up the odds on scratchers and turned $1 draw games into $2 games. A lot of what they do just insults an aware player's intelligence.
I think this plot will thicken.
When stories like this come out, I lose trust in these lotteries.
So much for the argument that these gaming companies will increase revenues. Now, what is the real goal of privatization???
Also, to add: The inquiry I find just, given that North Star has failed to meet revenue targets as outlined in the contract. The people of Illinois are now entitled to know how their money is being appropiated.
This is a total lack of the Law. By hidding it's company policy aka how they keep so much money is why so many states are not making money yet those on the boards or private share holders are. Law makers who request a private company to run their state Lottery should be investigated and kick out of office,arrested on fraud and theft! Arizona ia another Lottery which is cheating and I've asked for a full investigation into these so called revenue building lottery companies.
Making those who run it rich period. If one was to just look at their salaries they gave themselves we would see. And because it's a contract the law makers sign we must pay them. Those who are not private share holders whine,bitch then ask for an investigation but it goes unresolved. THEN THEY GET SOME OF THE MONEY and it's all right!
There should be some performance guarantee in the contract. Three straight years of not meeting revenue goals. Plain and simple. Northstar should be fired. I worry when lotteries become privatized. This is a prime example.
They are hiding the secret to winning a lottery jackpot.
Odds of running a lottery business are too high.LOL
You can't win forever in life.
My lottery ticket did not match the lottery winning numbers.
My guess is that the "marketing data" was based on less than reputable info sources...in order to get the contract.
The business plan included Keno and here's the clincher, a request to revise the promised revenues downwards of over half a billion dollars FY14 to FY18.
Which is probably why they don't want it public.
You can win a lottery jackpot with 1 ticket?
Illinois lottery players are broke. High unemployment rate translate to lost revenues for the lottery.
lol Yes....you know that is my plan! But I will keep my day job in the meanwhile.
Be on the lookout for rats fleeing the sinking ship...with golden parachutes.
The lottery is a tough business to profit from nowadays.
Instant scratch off games with pictures of rats?
"The company hired to run the Illinois Lottery continued its fight to keep some documents under wraps, arguing their release would violate its contract with the state and expose company secrets to competitors."
expose company secrets?!?!?..ROFL!!...like it's really hard to come up with ways to fist f%ck the public LOL
Every time I read an article about a private company promising the state they can increase lottery profits, I have to laugh. How do you do that? 1) Sell more tickets. 2) Increase the odds. 3) Make it harder to win. At least according to the private co. The state might do better in the beginning, but then the players catch on and stop playing. Result: Less sales, which equals less $$$ for the state. How many more times does this have to happen before the states realize they should just leave things well enough alone?
Since then, it has failed to meet revenue goals in the 2012 and 2013 fiscal years. Last month, a lottery official said the firm was on track to fall short of revenue targets for the third straight year.
Maybe the targets are too high?
All they have to do is lower the targets and everything should be fine.
How are you going to meet revenue targets if the state is paying them million every year, and then on top of that they probably give large bonuses to themselves for essentially doing a questionable job.
And also maybe those lottery balls in illinois are made of ivory and they use them only once and the cost of replacing them after every drawing is beginning to add up?
I think that's a very good guess.
You don't get any money that way.
How many times do I have to tell you?
That whole state will eventually crash and burn under the weight of the entrenched greed and corruption in their government.
If Northstar wants to hide their secrets they should put them with what's-his-name's school records.
The media will never look there.
Exactly, Would not trust the integrity of the games at this point.