 Two bidders are vying for the right to privately manage the Illinois
Lottery. Earlier this week at a public hearing in Chicago, the Northstar Lottery Group and the Camelot Group both presented their
proposals to a state commission.The Northstar Lottery Group is a
combination of three different companies that already work with the
Illinois Lottery, while the Camelot Group is based in the United
Kingdom and oversees the United Kingdom National Lottery.
The Illinois Lottery receives more than $2 billion in annual
sales, with more than $600 million going toward the state's Common
School Fund.
Whichever firm obtains the contract would stand to gain up to 5
percent of all ticket and share sales, depending on the agreement.
In turn, the private firm would be expected to contribute manpower
and funding toward the lottery, market to a wider range of
participants, and ultimately bring in more revenue.
But state Rep. Jack Franks, D-Woodstock, would rather have the
state continue to manage the lottery. He also questioned the bidding
process altogether, wondering how the field of bidders was whittled
down to two finalists so quickly.
Intralot S.A., a Greece-based company and one of the largest
lottery firms in the world, was eliminated just a week after it had
submitted a bid, with no reason being given.
And since Northstar already has contracts with the Illinois
Lottery, Franks questions how it would regulate its own services if
it also managed the business.
"There are way too many questions here that have not been
answered, and I don't think it's in the best interest of the
taxpayers of the state of Illinois," he said.
Quinn is scheduled to name the winner of the 10-year management
contract on Wednesday.
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Last year, Quinn signed into law a multiyear, $31 billion package
of public works legislation. The legislation called for a number of
funding sources, including lottery privatization as well as expanded
video gaming and increases in liquor taxes and motor vehicle fees.
State Rep. Jerry Mitchell, R-Rock Falls, voted for the public
works package because of the widespread need for new state roads and
bridges. But he remains opposed to privatizing the lottery as a
means of funding projects.
Mitchell said the state would not be able to take full advantage
of the lottery's potential growth.
"The lottery, once it's privatized, it brings in new people. The
increases (in the lottery) are going to go to a private institution,
not particularly to the state of Illinois," he said.
State Sen. Dale Righter, R-Mattoon, voted against the public
works package but is open to the concept of opening the lottery to
private management and possible growth.
"Like so many other rather complicated policy matters, it's all
in how you do it. It's got great potential. The question is, are you
going to carry it out in such a manner that you actually ... realize
that potential? And I think that question is still out," he said.
[Illinois
Statehouse News; By KEVIN LEE]
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