SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Fun with numbers

Wednesday, Jun 4, 2014

* AP

Illinois Senate President John Cullerton says he’s “extremely disappointed” with the private company that runs the state lottery.

Cullerton says lawmakers believed a private firm would operate the lottery better than the state. He says financial reports indicate Northstar Lottery Group “is unable to live up to its commitments.”

Reports filed with the Lottery Control Board show Northstar is projected to be $716 million short of its $3.5 billion required sales target this fiscal year. The company must make “shortfall payments” to the state when it misses targets.

* But this is also a state failure. Scroll way down in this Tribune story and you’ll see this

The firm became the nation’s first private manager of a state lottery in 2010. The selection process itself was not without controversy, prompting a scathing report from the state auditor general, which highlighted some irregularities and questionable practices. In one instance, a member of the evaluation team chosen by the governor to review and recommend a winner reportedly read nearly 2,000 pages of bid proposals in a single day. […]

Shortly after the company took over the lottery in July 2011, it began requesting that the state lower the net revenue promises set forth in the contract.

And scroll even further and you’ll see this

In an appearance last month before the Lottery Control Board, Northstar CEO Timothy Simonson defended the company’s performance. He said the lottery has brought in an additional $450 million to fund education and capital improvements and such charitable causes as breast cancer research and veteran support programs.

The increase shows the firm has grown sales at a rate of 12 percent annually, compared with the 3 percent growth the lottery experienced under state control, Simonson said.

By the state’s own estimate, it would have taken a decade to reach the net revenue figures that Northstar achieved in the first year after taking over day-to-day operations of the lottery, he said.

This bid was goofy from the start. Northstar obviously over-promised and a cash-starved state fell for it hook, line and sinker. Northstar should be punished for its behavior, but spare me the outrage because there’s also no doubt whatsoever that moving to a private manager has considerably increased state revenues.

- Posted by Rich Miller        


22 Comments
  1. - Walker - Wednesday, Jun 4, 14 @ 10:58 am:

    A private company over-promises, under-delivers — but still does better than what would have happened without their efforts.

    Everyone points fingers.

    Just like state government.


  2. - Langhorne - Wednesday, Jun 4, 14 @ 11:06 am:

    As my dad taught me at arlington park, “bettin’ on em dont make em win.” Just bec you really really want or need a particular outcome, doesnt make that a reality. Northstar over promised and the state bought it.


  3. - VanillaMan - Wednesday, Jun 4, 14 @ 11:08 am:

    CUT!

    OK - now John, pretend or act, (you can do this!), that you are an Illinois taxpayer. Use that same emotion you are displaying towards Northstar, but instead of Northstar, substitute Illinois State Government.

    Show the scowl! We want to see that face of utter disappointment! YOU ARE A TAXPAYER!

    Take Two!


  4. - Anon. - Wednesday, Jun 4, 14 @ 11:12 am:

    ==Northstar should be punished for its behavior, but spare me the outrage because there’s also no doubt whatsoever that moving to a private manager has considerably increased state revenues.==

    That is sort of like saying that there shouldn’t be outrage when a contractor builds a 2-lane bridge when the contract was for 6 lanes, because there wouldn’t be any bridge if the contractor hadn’t done the work. Anyway, if you look on the shortfall payments as being equivalent failing to qualify for a bonus for performance over and above an acceptable level, rather than as a punishment for not delivering at all, you get the same result without resorting to outrage. We can save the outrage for giving them the bonus even if they don’t earn it.


  5. - Decatur Dan - Wednesday, Jun 4, 14 @ 11:23 am:

    There should be more outrage and certainly is a lot of doubt…

    No one can say how well the State would have done without Northstar. Media reports have indicated that most other lottery States have done better than Norhtstar.


  6. - Mittuns - Wednesday, Jun 4, 14 @ 11:24 am:

    Surprised the sky has not fallen yet in the world of our resident Gloomy Gus.


  7. - MrJM (@MisterJayEm) - Wednesday, Jun 4, 14 @ 11:41 am:

    So the state entered into a project with a company who’s business model is fleecing math-challenged chumps… and then what happened?

    – MrJM


  8. - The Prince - Wednesday, Jun 4, 14 @ 11:56 am:

    Somewhat OT on a big WGN day: WGN may lose Illinois State Lottery drawings as well.


  9. - Mokenavince - Wednesday, Jun 4, 14 @ 12:15 pm:

    Cullerton just can’t realize you can’t squeeze blood out of a turnip. Oh I forgot he is a lawyer.


  10. - John Culpepper - Wednesday, Jun 4, 14 @ 12:22 pm:

    I like the observation Mokenavince makes. Funny!


  11. - Anonymous - Wednesday, Jun 4, 14 @ 12:42 pm:

    ==Somewhat OT on a big WGN day: WGN may lose Illinois State Lottery drawings as well.==

    People still watch that?


  12. - The Prince - Wednesday, Jun 4, 14 @ 12:52 pm:

    Just for Linda Kollmeyer.


  13. - Oneman - Wednesday, Jun 4, 14 @ 12:58 pm:

    Also surprised they didn’t negotiate something that reduced their targets if the state implemented expanded gaming… Like video poker.


  14. - DuPage - Wednesday, Jun 4, 14 @ 1:09 pm:

    Typical results when things are privatized. They will inflate the savings to get the contract. They don’t guarantee the results, and the state would have a hard time replacing them. A lot of former state employees who used to run it have left and are working for other state’s lotteries.
    Northstar won’t be going anywhere, they have the state by the short hairs.


  15. - Dirty Red - Wednesday, Jun 4, 14 @ 5:18 pm:

    I was at a meeting that discussed this very issue a couple years ago. NorthStar has yet to hit ANY of their annual projections. As a result they have paid the penalty every year of that contract. Is it at all possible this was a case of some horribly flawed projections? The group I was with was under that impression.


  16. - Tarden - Wednesday, Jun 4, 14 @ 5:28 pm:

    Doesn’t Northstar have to make up any shortfall
    in their projections? I believe they did last year.
    I assume that means they’ll do it again. How is the State harmed? Anyway you look at it seems they’ve made more $ than the state run system….


  17. - steve schnorf - Wednesday, Jun 4, 14 @ 6:47 pm:

    the big gripe I have is that they significantly overpromised, apparently at least partially in order to win the contract, which means there is some other company out there who didn’t overpromise, who then perhaps should have won the bid, and might be bringing in even more today. Unfortunately, do I recall that the other bid- der(s) were disqualified?


  18. - Oneman - Wednesday, Jun 4, 14 @ 8:30 pm:

    Doesn’t Northstar have to make up any shortfall

    Think they have to pay a penalty, not make up the entire shortfall.


  19. - A guy... - Thursday, Jun 5, 14 @ 10:04 am:

    Just out of principle the Lottery should be run privately. The problem with this or any other gambling scheme is that it’s only marketable and capable of growing when the numbers get into new astronomical levels. The people who play, play. The ones who don’t, don’t. Except to buy a ticket or two when it’s the topic of the day or week. They’ve expanded to so many games, that strategy is less effective now. Video poker is available to the same demo. Not much there to work with anymore.


  20. - Mouthy - Thursday, Jun 5, 14 @ 1:42 pm:

    What they are saying is that we are making more while taking in less in sales. How do you do that? By sticking it to the lottery ticket buyer even more. I used to buy a couple of tickets a week but don’t any longer. When the odds are 1 in almost the population of the U.S then it gets a little silly…


  21. - Commonsense in Illinois - Thursday, Jun 5, 14 @ 4:14 pm:

    When the bids came in in 2010 did no one say…jeepers these are awfully fantastic numbers you’re promising here…but it is 2010, and there is an election, and…well what the heck, the public will buy this…hell they bought Blagojevich - TWICE!


  22. - Jacob S - Thursday, Jun 5, 14 @ 8:22 pm:

    Sad


Sorry, comments for this post are now closed.


* React to remap reform ruling
* Divided court kicks remap reform off ballot
* Question of the day
* *** UPDATED x1 *** SUBSCRIBERS ONLY: TRS update
* Unanimously approved bill awaiting Rauner signature
* Rockford provider desperately needs state cash that isn't coming
* Today's number: 95.02 percent
* *** UPDATED x1 *** Federal judge rules Gill can remain on ballot
* Rate the new Baricevic ad
* The Rauner template
* Yet another race to the bottom in the US Senate race
* Beware the reformers
* SIU newspaper "consultant" pushed hard to land printing contract for his paper
* Cassidy "dare" lauded, but don't hold your breath
* Unclear on the concept
* An ever-changing semantics game
* The latest on redistricting reform
* Munger, Mendoza to face off at Tribune editorial board meeting
* SUBSCRIBERS ONLY - Supplement to today’s
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............
<


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Mostly familiar Sony Xperia X Compact and Xperia XZ specifications rumored
* First-gen Samsung Galaxy Tab S 10.5 begins receiving OTA Marshmallow after all
* Truecaller lands pre-install deal with Huawei as it crosses 90M monthly users
* [TA Deals] You can get these premium over-ear headphones for $79! (73% off)
* OnePlus Bullets V2 are the plain ‘ol earbuds we’ve always deserved
* XDA devs craft up Android Nougat for Nexus 5, Nexus 7 (2013)
* Hong Kong has the Moto E3 Power

* White Sox rally past M's on Frazier's walk-off hit
* Frazier sets RISP issues aside with clutch hits
* Sox won't reveal direction until after season
* Frazier ties it, then sinks M's on walk-off hit
* White Sox rally past M's on Frazier's walk-off hit
* Sale faces fellow ace Felix, Mariners at Cell
* Top Sox pick Burdi could be September callup

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Illinois governor to make appearances in southe.....
* Illinois redistricting referendum won't appear .....
* Illinois redistricting referendum won't appear .....


* Illinois corn maze pays tribute to 'Star Trek' anniversary
* Illinois redistricting referendum won't appear on ballot
* Illinois redistricting referendum won't appear on ballot
* Universities awarded grants to study harmful algae blooms
* Chicago-area imam pleads guilty to sex abuse charges
* Chicago-area imam pleads guilty to sex abuse charges
* Comptroller hopefuls argue independence from Madigan, Rauner
* Comptroller hopefuls argue independence from Madigan, Rauner
* Mayors seek hearing on Waukesha water withdrawal decision
* Illinois officials to analyze fairgrounds flooding, damage

* Illinois redistricting referendum won't appear on ballot
* Comptroller hopefuls argue independence from Madigan, Rauner
* Springfield-area jobless rate remains lowest in Illinois
* Illinois 'Obamacare' health insurance rates up significantly
* Rauner's office warns teachers' pension change could be 'devastating'
* IDOT to analyze fairgrounds flood-control measures
* Rauner signs bill to punish trafficking guns into Illinois
* Rauner to sign bill to clamp down on gun trafficking
* Gov. Rauner signs bills to assist juvenile, other offenders
* Gov. Rauner signs package of criminal justice legislation

* In victory for Madigan, Illinois remap plan is tossed by divided court
* Sephora's new Michigan Avenue store features high-tech touches
* How to get a first class upgrade every time
* A celebrated pastry chef turns to painting
* Amazon to open its first brick-and-mortar bookstore in Chicago


* Vehicle hit by gunfire on I-57 in Matteson
* Police: Man shot after shooting at woman in West Englewood
* 10 shot in Thursday attacks across Chicago
* Georgia Nicols horoscopes for Aug. 26, 2016
* Dear Abby: Friend took my kidney, then ditched me
* Man shot in West Town
* White Sox, Frazier enjoy walk-off win over Mariners
* Man shot in Jefferson Park
* Red Line trains to bypass stations for weekend track work
* State trooper hospitalized, two wounded in South Side shooting


* 2 shot by Illinois State Police on South Side
* 1 dead, 10 wounded in separate shootings
* Lessons learned: Ex-NBA star shares his story at high school
* Striking miners kill deputy minister in Bolivia: official
* 1 dead, at least 4 injured in Belgium in accidental blast
* Clinton might be the GOP's savior — how strange is that?
* Todd Frazier comes through for 7-6 White Sox victory over Mariners
* Judge in Stanford rape case to stop hearing criminal cases
* U.S. troubles over Trump and TPP risk emboldening China in Asia
* Russia sees Syria war solution closer after thaw in ties with Turkey


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* Illinois redistricting referendum won't appear on ballot
* Comptroller hopefuls argue independence from Madigan, Rauner
* Springfield-area jobless rate remains lowest in Illinois
* Bernard Schoenburg: Illinois an 'outlier' in party appointments to legislative vacancies
* Esther Cepeda: One man's clutter could be another man's treasure
* Scott Reeder: A case for tempering justice with mercy
* Illinois 'Obamacare' health insurance rates up significantly
* Eugene Robinson: Trump's 360-degree 'pivot'
* Rauner's office warns teachers' pension change could be 'devastating'
* IDOT to analyze fairgrounds flood-control measures


* Are you ready for some football? Friday night football is back in Southern Illinois
* Mount Zion helplessly devoted to Grease Fest
* Patricia 'Patty' Spangler
* Barbara Downs
* Evelyn Patton
* Louis Wildermuth
* Mary Fann
* Jerry Morgan
* William Kemper Jr.
* Jerry Fiorina


* Scout's grapefruit juice spray is solution to geese in park
* Family places organic lotion they created on the market
* Car bomb attack in Turkey kills 11 police; 78 wounded
* Memories remain, mementoes left behind in family homestead
* VW: employee chief floats idea of taking stakes in suppliers

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Dick Durbin's war on affordable banking - ......
* Dick Durbin's war on affordable banking - ......

* Duckworth critical of Kirk during visit to......

* Trash Movie Night Returns To Fat Cat on Wednesday -- With Dinosaurs!
* “The Driver’s Side” – News From The Motorist’s Perspective
* The Comic Con
* Presidential insults; what else is new?
* CTU Preps For Possible Strike In October
* Judge Orders Release Of Additional Clinton Emails
* Cartoon Of The Day
* Cartoon of the Day - 8/24/16 IL black unemployment rate
* Transgender Performer Sues Over Chicago's Ban On Female Nudity In Bars
* New Illinois Law Imposes Stiff Penalties For Gun Trafficking


* Governor Announces First Sheltered Market - Sheltered markets ensure equal opportunities for businesses owned by women, minorities and persons with disabilities
* Governor Rauner Signs Bill to Give Former Offenders a Brighter Future
* Statement on Health Care Rate Filings
* Governor Opens Minority Entrepreneurship Program Applications
* Governor Rauner Signs Firearms Trafficking Bill to Help Protect Communities from Gun Violence




      Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller