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|Quinn Makes Lotto Pick
|The state is eyeing big money from a private contractor being hired to run the lottery.
Northstar Lottery Group, a consortium of gambling and marketing firms, is the winning bidder, with a promise of profit $700 million greater than the runner-up, Camelot Group. State Revenue Director Brian Hamer announced the winning bid alongside Gov. Pat Quinn on Wednesday afternoon, on the date required by law.
Northstar promises lottery profits of $4.7 billion over five years, which is $1.43 billion greater than the state expects it would have occasioned without private management. Out of that, Northstar would collect a fee of $331 million, leaving the state with $1.1 billion in new lottery profits over five years. The bid is for a 10-year contract; each year, the contractor must project profits another year into the future.
The bidders were evaluated on their promise to increase the lottery customer base, their commitment to responsible gambling, their record and their promise for state revenue.
"This is not an arrangement based on sales. This is an arrangement focused on profits, because that is the money that the lottery transfers to its good causes: public education and the Capital Fund," said Jodie Winnett, the lottery superintendent.
The state retains regulatory oversight of the lottery, will still have a lottery superintendent and Lottery Division employees won't be fired. Northstar will take over early next year, assuming a final background check turns up no blemishes.
(Illinois Radio Network)
|09 16 10 by Newsroom
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