Report: Ill. lottery manager short $100M on profit

Comment #12

mcginnin56 — Sun, 05 Aug 2012 19:10:41 GMT

Comment #11

KY Floyd — Sun, 05 Aug 2012 07:14:38 GMT

It's because they're paying penalties for not delivering what they promised, not just making good on the promises. The company agreed to those penalties, so they've got to make good on the penalties instead of just the profit they didn't generate.

Comment #10

KY Floyd — Sun, 05 Aug 2012 07:12:19 GMT

They can try to blame it on PB prices, but that's not going to be a very good strategy, since overall sales are up. There were 3 jackpots that weren't fully funded yet, but the actual loss of profit to Illinois was only a tiny fraction of the $100 million difference. That minor reduction in profit was probably offset by increased profit from the higher sales.

The real question is the details of what they promised , whether or not the state changed anything that affected the profit, and the de... [ More ]

Comment #9

Coin Toss — Sat, 04 Aug 2012 04:59:27 GMT

Not much they can do with the numbers games unless they reduce the payouts.

I'm thinking maybe they are really going to get tight with the scratchers.

Ironic kind of, Quinn (Gov.) insisted on letting Northstar run the lottery. Let's say the lottery itself was the jackpot, the state running it every year was the annuity, and Northstar was the 'cash option'.

The players should always take the cash and the state should stick with the annuity

Comment #8

Littleoldlady — Fri, 03 Aug 2012 11:59:43 GMT

If they are short about 100 million, how can the possible penalties be hundreds of millions? Makes no sense to me.

Comment #7

Cletu$2 — Fri, 03 Aug 2012 00:44:54 GMT

They just didn't know who's palm to grease,in Illinois it could be any number of officials from the govenor on down.So they decided to inflate the numbers to get the contract and immediatly started to back pedal once the ink on the contract was dry.It should be interesting to see how this plays out.

Comment #6

JonnyBgood07 — Thu, 02 Aug 2012 23:15:28 GMT

Comment #5

rdgrnr — Thu, 02 Aug 2012 23:11:18 GMT

The same month the company got the contract, it began seeking a reduction in what it promised.

Now, that there is what you call one of them there red flags .

Now, right there somebody shoulda said: Hold 'er Newt! She's headed fer the barn!

Dadgum straight, JimBob.

Comment #4

Seattlejohn — Thu, 02 Aug 2012 22:37:42 GMT

I've been waiting to see if there's any blowback from Powerball upping their cost from $1 to $2; this may be the first sign of an issue. I know powerball's idea was bigger initial jackpot, quicker to huge jackpots where more people play, more publicity, more money to states vendors ; I'm thinking this might not be the case afterall...

Comment #3

mcginnin56 — Thu, 02 Aug 2012 14:40:44 GMT

Still a great performance considering Illinois's lousy sales for many years.

Comment #2

dpoly1 — Thu, 02 Aug 2012 14:31:58 GMT

OOOOOOOOOOOOOOOPS

Comment #1

zinniagirl — Thu, 02 Aug 2012 14:22:33 GMT

Wonder if they will blame it on the increase in PB prices? Or will they be man enough to say, we inflated our projected profits to get your contract

Report: Ill. lottery manager short $100M on profit

Lottery Post — Thu, 02 Aug 2012 13:34:34 GMT

The Illinois Lottery's private manager fell nearly $100 million short of the profits it promised to deliver for the state.

But the Chicago Tribune reported Tuesday that revenues generated by Northstar Lottery Group still set an Illinois record. Illinois has fallen behind other state lotteries for years.

Northstar promised $825 million in net revenue when it took over the lottery in July 2011. A Tribune analysis found it had collected $726 million by the end of June.

That could mean hund... [ More ]