Illinois Fires Lottery Manager Amid Revenue CrisisMove Comes As State Not Paying Some Winners |
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Illinois Gov. Bruce Rauner said Friday that a new termination deal has been reached with the private manager of the state’s lottery, according to bizjournals.com. The state hasn’t been happy with the lottery revenue during the partnership, which was forged in 2010 as Illinois Lottery revenue was struggling compared to other states.
Northstar Lottery Group, which is an offshoot of Gtech and Scientific Games, will be out by the end of next year or at whatever time a new private manager is selected, the report said.
The termination agreement will allow the new manager of the state’s lottery to select its own suppliers, as it won’t be required to do business with Gtech and Scientific Games.
The move comes as Illinois is not paying out lottery winners with prizes greater than $25,000 due to budget issues. A class action lawsuit was filed earlier this month.
Firing Northstar will save taxpayers $22 million, according to the Chicago Tribune.
Illinois Lottery proceeds dropped last year for the first time since 2009, according to the Associated Press. It fell by $125 million to $690 million during the fiscal year that ended on June 30.
Americans spent more than $70 billion on the lottery in 2014, which makes it the most popular form of regulated gambling in the country. The entire U.S. casino gambling market is smaller.
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