Rainbow Pictures Wcvs Radio Springfield Il

Private manager takes over Lottery operations today

Although Northstar Lottery Group formally assumes the reins July 1, the transition to private management has been under way for some time. Regular players have seen new signage and the rollout of new games in recent weeks, but otherwise shouldn't notice a difference if they buy lottery tickets after the first of the month.

Northstar management, though, said they are focusing on bringing new people to play the lottery, the occasional player to play more often and the former player to try again.

"They will see there's a new energy, a new excitement, a new dynamic happening, which is really epitomized by a new logo which is much brighter, funner and more approachable," said Northstar CEO Connie Laverty O'Connor. "We're trying to make sure we will generate momentum that will generate more revenues."

Top 10 in profits?

Northstar is a consortium of three companies that held contracts with the lottery before the decision to privatize management, including Gtech, Energy BBDO and Scientific Games. Although the lottery will be privately managed, the state retains ownership and ultimate control over it.

Northstar will be paid a flat management fee of $15 million a year.  Above that, the company will get a percentage of lottery profits it produces above $650 million, said Mike Klemens, spokesman for the Department of Revenue. Lottery profit that is used to support education funding is the amount the state gets, after prize payouts and operating expenses.

Over the next five years, O'Connor said, the company expects to increase those profits to between $750 million and $1 billion.  The plan is to have Illinois place in the top 10 in profits among states that have lotteries.  Right now, Illinois ranks 18th, O'Connor said. Exactly the point, said Rep. Jack Franks, D-Marengo, a critic of the management deal.

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