Two companies make case for running Illinois Lottery

Two companies make case for running Illinois LotteryTwo companies make case for running Illinois Lottery

CHICAGO, IL. – The two companies in the running for the contract to take over the day to day running of the Illinois Lottery yesterday presented their plans for the lottery to the public. Northstar Lottery Group and Camelot Illinois are both hoping to become the first private companies to fully control a state lottery in the United States.

Both companies have their own views on running the Illinois Lottery with Northstar Lottery Group (a firm run by Lottery giants Gtech and Scientific Games Corporation) saying that their own experience in the state would be invaluable as they could hit the ground running as they have all suppliers in place and know the requirements of all the lottery vendors in the state with their years of experience running lottery terminals and printing tickets for the Illinois Lottery.

Camelot Illinois argued that what the lottery needed to progress and generate even more profits would be a fresh outlook and that is what they can promise. Camelot Illinois is a subsidiary of Camelot, which has the UK National Lottery since it began in 1994 so there is plenty of experience of starting up a new lottery venture like this one in the company.

The public presentations by Northstar Lottery Group and Camelot Illinois came one week before state Governor Pat Quinn is scheduled to pick which firm will oversee day-to-day operations at the lottery, including developing new games, overseeing marketing and advertising, and potentially launching an experimental online lottery sales program.

The deal to take over the Illinois Lottery could be incredibly lucrative for the company that Gov. Quinn picks, although the hearing yesterday didn’t provide much more information on exactly how the plan will work. No details were given on how much the state will pay either company or how many state workers will lose their jobs as the lottery goes private.

That information is contained in the companies’ bid packages but won’t be shown to the public until after the Governor has made his decision. State officials did mention that the winning company would get bonuses for increasing lottery profits during the 10 year contract period.

Camelot Illinois predicted that is would be able to increase Illinois lottery sales from last year’s $2.2 billion to $3.8 billion by 2016. The company touted its position as an outsider that can bring new ideas, in contrast to the competing group that includes longtime state lottery vendors Gtech and Scientific Games. That kind of profit increase would lead to Camelot Illinois qualifying for a bonus.

source: Chicago Tribune 8/9/10

Published: September 9, 2010

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