SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
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        

  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:


    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:


Sorry, comments for this post are now closed.

* Dold demanded DCCC ad linking him to Trump be taken off the air
* Rauner handing out bonuses to non-union employees
* Miles away and worlds apart
* Question of the day
* *** UPDATED x1 *** Everybody wants to get into the act
* The opposite of slick
* The Trib's closing argument: It's all about Madigan
* The expectations game
* Did Rauner kick a big can?
* More unintended consequences?
* From 23 down to 0
* Hey, Cub fans!
* An amateur nails it
* It can always get worse
* Republicans dispute Trib numbers, say Madigan doing better than realized
* Trump not cooperating with Rauner's best laid plans
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* This just in... $12 million contribution to Leader Durkin, $2 million to Munger
* Yesterday's blog posts

Visit our advertisers...






Search This Blog...

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

Search the 98th General Assembly By Keyword

* Google Pixel Unboxing: A lot of hype, a lot of box
* Samsung Galaxy S8 delays due to Note 7, Google Pixel story & more – Pocketnow Daily
* Google Pixel water resistance tested for an hour
* Google Maps Adds Food Delivery Support in New Update
* Android Pays joins up with Visa and Mastercard to make online checkouts easier
* Twitter’s sales team is taking a hit in big upcoming layoffs
* Apple Replaces Support Profiles With New Tool That Only Shows Devices Signed Into Your Apple ID

* White Sox developing promising OF prospects
* Podcast: 2016 White Sox Outfield Review
* mikecws91's Offseason Plan
* The ten best developments of the 2016 White Sox season
* KenWo4LiFe's off-season plan
* Getz to oversee White Sox Minor Leagues
* Getz to oversee White Sox Minor Leagues


Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

October 2016
September 2016
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


RSS Feed 2.0
Comments RSS 2.0


* Ohio, Illinois governors place bets over Cubs-I.....
* Ohio, Illinois governors place bets over Cubs-I.....
* Ohio, Illinois governors place bets over Cubs-I.....
* Ohio, Illinois governors place bets over Cubs-I.....
* Ohio, Illinois governors place bets over Cubs-I.....
* Ohio, Illinois governors place bets over Cubs-I.....
* Ohio, Illinois governors place bets over Cubs-I.....
* Ohio, Illinois governors place bets over Cubs-I.....
* Ohio, Illinois governors place bets over Cubs-I.....

* Protesters set up camp in project's path for the 1st time
* Recording '59 JFK speech to be played in Illinois theater
* Want to see World Series at Wrigley? It will cost thousands
* Authorities: Skydiver dies after hitting sign in Illinois
* Sentencing date set for ex-Chicago schools superintendent
* Excerpts from recent editorials in newspapers in Illinois.
* Driver who fled Milwaukee crash that killed 3 surrenders
* Trial delayed for Chicago woman accused of giving niece gun
* Obama's library materials to travel from capital to Illinois
* Obama's library materials to travel from capital to Illinois

* Feds end lease with Illinois for state park, citing neglect
* Statehouse Insider: Tomorrow's a new day; in Illinois, that may not be good
* Cook County lawyer who posed as judge criminally charged
* 1,100 non-union state workers getting $3,016 bonuses
* Springfield veteran honored for volunteer work
* Central Illinois soldier killed in Afghanistan
* Rauner administration awarding more than $3 million in bonuses to non-union workers
* SIU injury-prevention program reinstated through stopgap budget
* Survey: 386 state jobs could relocate to Springfield
* SIU injury-prevention program reinstated through state's stopgap spending plan

* Lions and Cubs and angry aldermen, oh my
* Emanuel taps United exec as new McPier chairman
* Ready for sticker shock? Obamacare prices revealed
* Banks challenge Venmo with new payments network
* Cubs give city a star turn. Don't blow it, Chicago.

* Obama helping Democrats in close Senate, House races
* Dear Abby: Should I report a baby with bruises?
* Georgia Nicols horoscopes for Oct. 25, 2016
* Cubs, Indians ride home runs more in playoffs
* Fantasy Fools: Nothing goes as expected — as usual
* Obama reads mean tweets on Jimmy Kimmel show
* Doctor listings often wrong in Medicare advantage directory
* High lead found in 24 percent of Chicago Park District fountains
* Kris Versteeg scores shootout winner as Hawks fall
* Teen charged after rash of west suburban burglaries

* 16-year-old killed, 9 wounded in Chicago shootings
* Authorities: No sign of braking by bus driver in Calif. bus crash that left 13 dead, 31 injured
* Authorities: Skydiver dies after hitting sign in LaSalle County
* Elizabeth Warren to Donald Trump: 'Nasty women vote'
* Kyle Schwarber appears likely to be included on Cubs' World Series roster
* More than 50 killed as militants attack police academy in Pakistan
* Which Chicago-area singers survived 1st knockout round on 'The Voice?'
* Clear as day, Jay Cutler again the Bears starting QB
* New-look Bulls to start season with open roster spot
* Rick Sutcliffe glows about Cubs prospect Dylan Cease

The widget AQL4JYGHIY powered by Feed Informer does not exist.

* Our Opinion: Endorsing Bourne, DelGiorno for the Illinois House
* Kathleen Parker: You can dress him up, but Trump is Trump
* Our Opinion: Leslie Munger endorsed for Illinois comptroller
* Feds end lease with Illinois for state park, citing neglect
* Our Opinion: With poor choices, Clinton gets nod for president
* Statehouse Insider: Tomorrow's a new day; in Illinois, that may not be good
* Bernard Schoenburg: DelGiorno apologizes for backer's vulgar Facebook post
* Cooler temperatures lead to greater needs
* Women for Women tops half million mark
* Cook County lawyer who posed as judge criminally charged

* WHERE THEY STAND: gun control
* Area first-round playoff football times finalized
* Area prep statistics: Girls' tennis (Oct. 25)
* Urbana volleyball survives regional opener
* N-G Top 10: Football, Week 10
* Regional volleyball roundup: Chargers open with win
* Area prep statistics: Girls' swimming and diving (Oct. 25)
* UI roundup: Volleyball remains in Top 25
* Fourth and long: What's next for Vaughn?
* Tate: Cubs look set for great present, future

* Girls volleyball scoreboard: Monday, Oct. 24 results
* Chicago Blackhawks fail to douse Flames
* Patriots rolling as they prepare for Round 2 against Bills
* Hong Kong court sees chilling video describing torture
* Anderson, Booker ignite Broncos in 27-9 over Texans

* 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

* Ohio, Illinois politicians make friendly w......
* US Senator and Senate candidate visit SIUC......
* U.S. Senator and Senate candidate visit SI......

* Race between Duckworth, Kirk key to determ......
* Senators from Illinois, Ohio bet case of b......
* Ohio, Illinois politicians make friendly w......

* Code Red
* The goat, vs. Rocky Colavito
* Chicago #Cubs championship history #postseason
* Go #Cubs go #flythew #postseason
* Crain's: Is Chicago about to lose another black-owned bank?
* Announcements
* Last Menetti-Owned Building In Uptown Sold
* Cartoon of the Day - 10/24/16 Cubs win
* Cartoon Of The Day
* Auto Problems Top American Consumer Complaint List; Groups Warn Of Fast-Growing Imposter Scams

* Governor’s Children’s Cabinet Makes Lead Poisoning Prevention A Priority - October 23-30, 2016 - National Lead Poisoning Prevention Week
* Illinois EPA Sponsors Interactive Environmental Education Event with Riverton Elementary School - Riverton Third and Fourth Graders “Dive In!” to Celebrate the Environment
* Illinois Department of Veterans’ Affairs Honors Veteran Mr. George Pempek
* Illinois Partners with State of Telangana, India to Strengthen Smart State Initiatives - State to state agreement to accelerate opportunities and service to citizens
* Illinois EPA Announces Vehicle Emissions Testing Network Updates - New Contract to Offer More Efficient, Less Expensive Tests

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