Illinois ends contract with private manager of lottery

Back to TopCommentsE-mailPrintBookmark and Share

Illinois is dumping its private lottery manager three years into a 10-year contract for failing to meet financial goals, Crain’s Chicago Business reported Friday.

The manager, Northstar Lottery Group LLC, is 80-percent owned by Rhode Island-based Gtech Corp., the parent company of Gtech Indiana, which manages the Hoosier Lottery.

"The governor's office has directed the lottery to end its relationship with Northstar," Grant Klinzman, a spokesman for Illinois Gov. Pat Quinn, told Crain’s in an email. "The administration has had serious concerns with Northstar's performance. The governor demands every state contractor be held accountable for their performance."

Quinn's office would not tell Crain's whether the state planned to operate the lottery itself or hire a new manager.

Hoosier Lottery spokeswoman Courtney Arango did not immediately return a phone message Friday afternoon seeking comment on Illinois’ decision.

Northstar and Illinois disagree on the exact numbers, but the state said the company has fallen short of its projections in all three years it has managed the lottery. It was $716 million short of its revenue target through the first nine months of fiscal 2014, the state said earlier this year.

Northstar’s problems have created potential political problems for Quinn, a Democrat, who is running for reelection this year and trailing Republican Bruce Rauner in the polls.
Gtech signed a 15-year contract to manage Indiana’s lottery in 2012 and promised to bring in $1.76 billion in the first five years.

Indiana was only the second state, following Illinois, to outsource most of its lottery operations. New Jersey became the third state in 2013.

IBJ reported May 20 that Gtech was not on pace to reach financial goals in Indiana for the 2014 fiscal year, which ended June 30. Its revenue from lottery products through April 30 was $852.4 million and it needed to reach $1.06 billion by June 30 in order to reach its goal of $256 million in net income.

Full figures for the fiscal year haven’t yet been made public by the Hoosier Lottery.

Under its contract, Gtech is responsible for making up any shortfalls.

Indiana pulled in an estimated $224.6 million under its own management in fiscal 2013, according to the lottery commission.

Gtech outlined its long-term plan for meeting its lofty goals in Indiana in a May 30 IBJ story.



  • you can't fix this.
    Are we outsourcing lottery income to an out-of-state vendor? That makes about as much sense as buying a lottery ticket.
  • Tax
    The lottery is just a tax on people that have no understanding of statistics.

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Hiking blocks to an office after fighting traffic is not logical. Having office buildings around the loop, 465 and in cities in surrounding counties is logical. In other words, counties around Indianapolis need office buildings like Keystone, Meridian, Michigan Road/College Park and then no need to go downtown. Financial, legal, professional businesses don't need the downtown when Carmel, Fishers, North Indy are building their own central office buildings close to the professionals. The more Hamilton, Boone county attract professionals, the less downtown is relevant. Highrises have no meaning if they don't have adequate parking for professionals and clients. Great for show, but not exactly downtown Chicago, no lakefront, no river to speak of, and no view from highrises of lake Michigan and the magnificent mile. Indianapolis has no view.

  2. "The car count, THE SERIES, THE RACING, THE RATINGS, THE ATTENDANCE< AND THE MANAGEMENT, EVERY season is sub-par." ______________ You're welcome!

  3. that it actually looked a lot like Sato v Franchitti @Houston. And judging from Dario's marble mouthed presentation providing "color", I'd say that he still suffers from his Dallara inflicted head injury._______Considering that the Formula E cars weren't going that quickly at that exact moment, that was impressive air time. But I guess we shouldn't be surprised, as Dallara is the only car builder that needs an FAA certification for their cars. But flying Dallaras aren't new. Just ask Dan Wheldon.

  4. Does anyone know how and where I can get involved and included?

  5. While the data supporting the success of educating our preschoolers is significant, the method of reaching this age group should be multi-faceted. Getting business involved in support of early childhood education is needed. But the ways for businesses to be involved are not just giving money to programs and services. Corporations and businesses educating their own workforce in the importance of sending a child to kindergarten prepared to learn is an alternative way that needs to be addressed. Helping parents prepare their children for school and be involved is a proven method for success. However, many parents are not sure how to help their children. The public is often led to think that preschool education happens only in schools, daycare, or learning centers but parents and other family members along with pediatricians, librarians, museums, etc. are valuable resources in educating our youngsters. When parents are informed through work lunch hour workshops in educating a young child, website exposure to exceptional teaching ideas that illustrate how to encourage learning for fun, media input, and directed community focus on early childhood that is when a difference will be seen. As a society we all need to look outside the normal paths of educating and reaching preschoolers. It is when methods of involving the most important adult in a child's life - a parent, that real success in educating our future workers will occur. The website www.ifnotyouwho.org is free and illustrates activities that are research-based, easy to follow and fun! Businesses should be encouraging their workers to tackle this issue and this website makes it easy for parents to be involved. The focus of preschool education should be to inspire all the adults in a preschooler's life to be aware of what they can do to prepare a child for their future life. Fortunately we now know best practices to prepare a child for a successful start to school. Is the business community ready to be involved in educating preschoolers when it becomes more than a donation but a challenge to their own workers?