Thursday, January 20, 2011
 
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Illinois Lottery picks management firm, worries anti-gambling advocates

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[January 20, 2011]  SPRINGFIELD -- Northstar Lottery Group is the big winner in the Illinois Lottery.

Beginning in July, Chicago-based Northstar Lottery Group will manage the state's lottery games under a 10-year management contract. And by 2016, five years into the contract, Northstar estimates it will generate $5 billion in revenue for the Illinois Lottery. The lottery raked in $2.2 billion in 2010.

Northstar Lottery Group was chosen over Camelot Group, the firm that manages the national lottery in the United Kingdom. The partnership was inked on Tuesday.

Lottery spokeswoman Susan Hofer said Gov. Pat Quinn chose Northstar because the company projected the most revenue.

Carolyn Grisko, a spokeswoman for Northstar, said the firm wants to revitalize the Illinois Lottery brand by developing new online games, refreshing in-store merchandise and expanding retail outlets.

A top Northstar executive echoed that sentiment.

"We also recognize that people play the lottery because they have fun doing it, and that's why we are going to create new and innovative games that bring excitement to every type of player," Connie Laverty, Northstar's chief executive officer, said in a statement.

With 73 percent of the state's lottery players older than 45, according to a study, Northstar sees an "opportunity to expand customer base and attract younger players," according to its business proposal.

But aggressive marketing tactics trouble some anti-gambling advocates.

"We're concerned about underage gambling because you'll only have to be 18 years old to gamble on the lottery," said Anita Bedell, executive director of Illinois Church Action on Alcohol and Addiction Problems. "We're also concerned about people who are vulnerable, people who don't have much money who will be enticed to spend more money gambling at a time when the economy is in such bad shape. And the role of the government in this -- of promoting gambling -- is distressing."

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Bedell said she is worried the lottery expansion will cause more problems.

"The lottery is a very regressive tax on the poor," Bedell said. "Having more aggressive marketing and advertising and more outlets at this time is going to create more problems for the people of Illinois."

The Illinois Lottery continues to contribute to the Common School Fund, which is scheduled to increase based on inflation, said Hofer. Last year, the school fund received $625 million from the lottery.

[Illinois Statehouse News; By MARY J. CRISTOBAL]

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