LOTTERY DEAL A WINNING TICKET FOR ONE

The latest Mega Millions winner is Northstar, the company that Governor Quinn has chosen to manage the Illinois lottery, though the integrity of the drawing is in question.

I first wrote about the possible privatization of management of the lottery on July 26th, (Let The Mob Run It) when I quoted WLS radio personality Jake Hartford who said, "Only in Illinois can we fail at gambling. Why don't we just hire the mob to run it for us? They have done well in that area."

Since nobody yet knows the details of the contract with Northstar, maybe Jake Hartford’s suggestion would have produced better results!

Worried about how the contract was awarded, State Representative Jack D. Franks (D-Woodstock) has called for an investigation into the recent awarding of the Illinois Lottery Private Management Agreement (PMA) by the Quinn Administration. In a letter to Attorney General Lisa Madigan, Franks asked that the actions of Governor Pat Quinn’s secret Illinois Lottery Evaluation Committee leading to the awarding of the contract to Northstar be carefully scrutinized.


“This deal reeks of unfair advantage and insider dealing,” said Franks in reference to Governor Quinn’s Wednesday announcement that Northstar would take over privately managing the Illinois Lottery. “The secrecy of the Quinn Administration throughout the bidding process has given rise to many questions. In our state, there is good reason to fear that without transparency, clout-heaving bidders will continue to unfairly win contracts based on their relationships, rather than their value. Taxpayers deserve to have access to all relevant information, or they may become victims of yet another bad deal.”

Franks has remained an outspoken critic of the privatization of the Illinois lottery. He contends the state would be better served to make necessary changes to the lottery itself and continue managing it internally, looking to other states that successfully manage their lotteries for advice. According to Franks, better managing the lottery internally could increase annual revenues by $650 million to $2 billion.


Most concerning about the PMA award is that Northstar will essentially be managing itself. Three Northstar subsidiary companies, G-Tech, Scientific Gains and Energy BBDO/Chicago, are already contracted with the State of Illinois to provide the same services outlined in the PMA. The content of the PMA was changed significantly halfway through the process, leading Franks to question whether the original PMA was simply a tool to stifle competition and allow for an essentially no-bid contract.


“I’m concerned for the interests of the taxpayers and also the well-being of our state,” Franks said. “Illinois is on the brink of fiscal ruin, and I am fearful that this lottery contract is a step in the wrong direction on the road to recovery for our state. I strongly believe that the process of the Lottery PMA must be evaluated and if questions remain, the contract should be re-bid.”


It is easy to win the lottery when there are only a few tickets sold and easier if you hold the only ticket. Knowing the numbers in advance will certainly produce a winner with Illinois taxpayers being the losers. Or as a friend said to me,” The mob already runs the lottery; it’s just a different mob.”