Administration Reaches Deal Over Botched Lottery Management Contract

Agreement saves taxpayers $22 million instantly. Northstar fully terminated as private manager of the Illinois Lottery

The Administration of Governor Bruce Rauner announced today it has reached a termination agreement with Northstar Lottery Group, LLC and its parent companies as the private manager of the Illinois Lottery.

“This deal is an instant win for taxpayers because it immediately saves them $22 million,” General Counsel Jason Barclay said. “In addition, it releases taxpayers from the eleventh-hour deal former Governor Quinn signed on his way out the door.”

The new agreement fully terminates Northstar as the private manager of the Illinois Lottery as of January 1, 2017 or until a new private manager is selected. In addition, it also allows the new manager to select its own suppliers. Under the former agreement with the previous Administration, the new manager would have been forced to give Northstar’s parent companies, GTech and Scientific Games, option rights, which would have significantly limited competition.

“This is a new day for the Illinois Lottery,” Acting Director B.R. Lane said. “This agreement will save the taxpayers hundreds of millions of dollars while allowing the Lottery to select a new partner that will help the agency grow and better serve its customers.”

The State will begin the search for a new private manager immediately.