Under that deal, Northstar would have received the funds as an exit deal, and the state of Illinois would have had to give option rights to Northstar’s parent companies Scientific Games and GTech.
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The news release on Friday claimed that the termination deal is going to save taxpayers roughly $23 million and the state is going to look out for a new private manager immediately. It also cited that an earlier termination agreement beaten up by then-Gov.
The new private manager will be able to select its own suppliers, which is different under Gov. Bruce Rauner compared to the former Gov. Pat Quinn’s administration.
The Illinois Lottery reportedly lost money last year for the first time in six years.
Under the agreement, a new private manager will take over the daily operations of the Illinois Lottery by January 1, 2017.
Northstar, which was hired in 2010 to increase sales and profits, has been under criticism for several years for its management style. The Quinn settlement was obstructed by Illinois Attorney General Lisa Madigan. “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”, Lane said.
Northstar Lottery’s contract was terminated due to the company’s failure of reaching the lofty revenue target it promised, according to the Chicago Tribune.
“The future of the lottery is projected to be turbulent in the coming months”, the report stated.
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According to state officials, they can’t issue any checks larger than $25,000 because its “not in the budget”. And lottery winners should not be expected to just shake their head and walk away just because the state can’t afford to pay their lottery winnings.
