Private Firm That Runs Illinois Lottery Fined For Not Selling Enough Lottery Tickets

By Chuck Sudo in News on Mar 18, 2013 10:20PM

The private company in charge of managing the Illinois Lottery fell short of its net sales projections last year. As a result, the state is fining them $20 million, per the terms of their contract. Only in Illinois, people.

Northstar Lottery Group projected $851 million in lottery revenues for 2012. They actually sold $757 million last year, a difference of $94 million. In fact, they failed to meet projections in 2011, falling short by $100 million. Northstar Vice President of Corporate Affairs Avis LaVelle told the Tribune, despite falling short of projections, the differential was actually less than what the state claimed and, more important, was a major boost from the $593 million total two years ago.

"What is indisputable is that this has been the most successful year for the lottery ever in its history," LaVelle said. "We look forward to working with the lottery to come to terms on the final numbers, and we share a mutual desire to make the lottery increasingly successful year after year."

Gov. Pat Quinn was pragmatic in his criticism of Northstar. He indicated the company knows “they have to do better” and said he wants to see a wider audience to play the lottery beyond the poor communities that typically serve are the backbone of the Lottery's customers. In 2010 Northstar proposed such a plan aimed at “responsible gaming” and a commitment to state charities and diversity in how it would dole out contracts.

Northstar’s Board is clout heavy: Former Cook County State’s Attorney Dick Devine, former Chicago Public Schools Board chairman Rufus Williams and System Development Integration LLC (SDI) president David Gupta are members of the board. LaVelle served as press secretary to former Mayor Richard M. Daley from 1989-1992.

The Illinois Lottery said it would withhold future payments to Northstar to recoup the $20 million.