Administration reaches deal over botched lottery management contract

Chronicle Media
Caption: While the Illinois State Lottery web page touts large jackpots for its lottery games, State Comptroller Leslie Munger has said without a budget in place, her office does not have authority to issue lottery checks of more than $25,000.

While the Illinois State Lottery web page touts large jackpots for its lottery games, State Comptroller Leslie Munger has said without a budget in place, her office does not have authority to issue lottery checks of more than $25,000.

Agreement saves taxpayers $22 million instantly

The Administration of Gov. Bruce Rauner announced last week it has reached a termination agreement with Northstar Lottery Group, LLC and its parent companies as the private manager of the Illinois Lottery.

“This deal is an instant win for taxpayers because it immediately saves them $22 million,” General Counsel Jason Barclay said. “In addition, it releases taxpayers from the eleventh-hour deal former Governor Quinn signed on his way out the door.”

The new agreement fully terminates Northstar as the private manager of the Illinois Lottery as of Jan. 1, 2017 or until a new private manager is selected. In addition, it also allows the new manager to select its own suppliers.

Under the former agreement with the previous Administration, the new manager would have been forced to give Northstar’s parent companies, GTech and Scientific Games, option rights, which would have significantly limited competition.

“This is a new day for the Illinois Lottery,” Acting Director B.R. Lane said. “This agreement will save the taxpayers hundreds of millions of dollars while allowing the Lottery to select a new partner that will help the agency grow and better serve its customers.”

The State will begin the search for a new private manager immediately.

–Administration reaches deal over botched lottery management contract–