Illinois Drops Lottery Management Company

Dec 9, 2014

The Illinois Lottery’s contract with a private management company is over. State officials announced Tuesday evening the contract with Northstar Lottery Group has been formally terminated.

Credit Illinois Lottery / illinoislottery.com

The selection of a new private management company begins immediately. Governor Pat Quinn voiced serious concerns with Northstar’s performance in August. Since then, the Lottery, Northstar and the Governor’s Office negotiated termination terms to avoid drawn-out litigation.

Northstar Lottery Group became the first private manager of a U.S. Lottery in July of 2011, based on its winning bid to raise hundreds of millions of dollars in additional income over a decade.  During its first full three years, Northstar missed its net-income targets by more than $450 million.

The Illinois Lottery will continue to function as usual, even while the state searches for a new management company. Contracts with the vendors that supplied lottery terminals and instant tickets under Northstar will continue, but at reduced compensation rates.