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.


* AFSCME to announce strike authorization vote results tomorrow morning
* HGOPs fight back against Dem messaging on Rauner budget
* The appearance of access
* Today's number: $12,401,195,168.60
* It's just a bill
* Question of the day
* STI death rates on the rise here, but we're way down the list
* Local reaction to new immigration order
* *** LIVE *** House session coverage
* Is a sales tax on food really regressive?
* *** UPDATED x1 *** 14 of 16 CPS Latino Advisory Committee members resign in protest
* Not surprisingly, local governments hate permanent property tax freeze idea
* *** UPDATED x1 *** SIU's Dunn: "We need to acknowledge that FY16 is now lost"
* Mystery solved on Rauner's whereabouts
* Would term limits make much of a difference?
* Study looks at how race of prez delegates may influence GOP primary voters here
* Kennedy fundraises off of proposed budget cuts
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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


Loading


* Dan Brady: Current year spending plan before FY.....
* STATE AFFAIRS: Fiscal follies continue as Illin.....
* NFLPA Tells Free Agents to Avoid Bears - The Ka.....
* State pharmacy lobby fights stricter regulation..
* Bernard Schoenburg: Duckworth in weekly address.....
* Sneed: Gov and family spend his birthday skiing.....
* Chris Kennedy joins race for Illinois governor .....
* Rauner assures gathering that he will persist w.....
* Sneed: Gov and family spend his birthday skiing.....


* Hastert victim again argues for remainder of hush money
* Immigrants fearing deportation under Trump change routines
* Republicans who won after rowdy town halls now avoiding them
* Not-for-profit owner pleads guilty to bankruptcy fraud
* Not-for-profit owner pleads guilty to bankruptcy fraud
* Experts: Science behind 'abortion reversal' is flawed
* Immigrants change up their routines, brace for arrest
* Illinois education board vote settles 2008 funding lawsuit
* Hoopeston dealer gets life for cocaine and meth distribution
* Central Illinois woman gets 3-year term for baby's death

* Hastert victim again argues for remainder of hush money
* Senate urged to leave state's PE requirements alone
* AFSCME will announce results of strike-authorization vote Thursday
* Luciano: State lawmakers fiddling while Illinois burns
* Illinois education board vote settles 2008 funding lawsuit
* Municipal League opposed to permanent property tax freeze
* Illinois State University seeks public input on its future
* AFSCME strike authorization vote outcome to be revealed this week
* Cheri Bustos won't run for Illinois governor
* Illinois bill would rein in pro athletes' worker comp claims

* How Illinois lawmakers have gamed their pensions
* These legislators collect paychecks from Washington—and pensions from Illinois
* Many Fed officials see rate hike 'fairly soon'


* Police: Man gunned down in Brainerd
* Police: Man fatally shot in Morgan Park, person questioned
* DePaul snaps 10-game skid with 67-65 win over Georgetown
* Editorial: Reality check for Trump’s deportation plan is up to us
* Police: Man fatally shot in Altgeld Gardens
* Boy grazed by bullet in Little Village, refuses treatment
* Sneed: Gov and family spend his birthday skiing in Utah
* Trade talk gets louder for Bulls, just not for Jimmy Butler
* How will new transgender guidelines affect suburban schools?
* Immigration lawyers echo CPS advice, critics question motives


* Buzzer-beater lifts Syracuse past No. 10 Duke; No. 3 Kansas clinches share of Big 12 title
* At least 4 dead, 5 wounded in Chicago shootings
* All's quiet on Butler trade front with deadline at 2 p.m. Thursday
* Transgender wrestler's state title bid spotlights Texas policy
* What you need to know about Trump's new immigration rules
* Wade Davis' starting experience a big help to him as a closer
* Kris Bryant believes baseball's fine just the way it is
* Jackie Evancho, who sang at inauguration, wants Trump to meet with her and transgender sister
* Trump administration lifts federal transgender bathroom guidelines
* Dennis Hastert victim again argues for rest of hush money in court filing


» 16 Latino Leaders Resign From Chicago Public Schools Advisory Panel
» Teachers At Chicago Charter School Vote To Authorize A Strike
» City Council Delays Vote On Street Performing Ordinance
» Retired Generals Oppose Grand Bargain's Lower Phys Ed Standards
» Emanuel Reworks Plan For $15M Tax Rebate Money
» Immigrants Change Up Their Routines, Brace For Arrest
» Illinois Budget Impasse Jeopardizes Hundreds Of Student Jobs At Northeastern Illinois University
» State Board Of Education To Adjust How It Distributes Money
» New Immigration Enforcement Policies Worry Some Chicago Attorneys
» Top Cop Defends His Promotion Of Commander With 90 Complaints


* Bernard Schoenburg: Duckworth in weekly address: Trump record 'abysmal'
* Our View: TIFs can't become the go-to bailout fund
* Hastert victim again argues for remainder of hush money
* Senate urged to leave state's PE requirements alone
* AFSCME will announce results of strike-authorization vote Thursday
* Luciano: State lawmakers fiddling while Illinois burns
* Illinois education board vote settles 2008 funding lawsuit
* Municipal League opposed to permanent property tax freeze
* E.J. Dionne: The death of a hero
* Michael Gerson: America’s sacred fire must not be doused


* Alton City Council approves TIF money for old post office work
* 'White-knuckle drive'
* Bettendorf proposed lowering property tax levy by 5 cents
* Trump administration lifts transgender student bathroom guidance
* Murphysboro police searching for juvenile who ran from officer
* If you see a Facebook post about a Cheesecake Factory coming to Godfrey, don’t click on it
* Brighton Township residents fear being railroaded in crossing deal
* Eldorado man sentenced for sexual abuse
* The Telegraph’s ‘Fun 5’ events this weekend
* Sen. Dick Durbin releases statement on new policy for transgendered people


* Silver Alert issued for man last seen in Glendale Heights
* Images: Stevenson vs. Warren boys basketball
* Chicago Bulls return to work as trade deadline looms
* Trial begins in murder of Bartlett man missing since 2014
* Harvey-Blaszczyk pairing lived up to expectations

* Rep. Hultgren visits Aurora Textiles plant...
* Hultgren guides STEM scholars through pres...
* US Congressman tours new Aurora Specialty ...
* Letter: Same insurance as Congress? - Kend...
* Majority of IL Congressional Delegation Op...
* GOP congressman appears to distance himsel...
* US Representative Randy Hultgren visits ne...
* Hultgren to participate in veterans forum ...
* Hultgren criticizes immigration ban, Roska...
* Hultgren will be at veterans' forum March ...

* Durbin prompts medical, dental schools to ......
* Durbin prompts medical, dental schools to ......
* Durbin prompts medical, dental schools to ......
* Durbin prompts medical, dental schools to ......
* Durbin prompts medical, dental schools to ......

* Bernard Schoenburg: Duckworth in weekly ad......
* Senator Duckworth tours the Stateline - WIFR...

* Ammendola appointed to countywide McGinnis vacancy
* ThemPeople draw from Chicago’s close-knit hip-hop scene for two new tracks inspired by TV
* Nintendo’s new console Switch works best when it takes the video out of video games
* Federal investigation shows Pakistani bros secretly took $100k from Iraqi source
* Hinz: Chicago's leaders are to blame for Seaway Bank's failure
* Forty-fives go mobile on the gig poster of the week
* The OnEdge experimental performance series questions traditional theatrical norms
* Retired military leaders express concern over effort to lower Illinois PE requirements
* Basketball Thursday Night - Cops And Community
* New Trier race seminar to continue as planned, school board prez says


* Governor Addresses State Board of Education to Emphasize Importance of Strong Accountability Standards
* Stars and Legends to Perform at 2017 Illinois State Fair - First Round of Grandstand Headliners Announced for Springfield Fair
* Earthquake Education Kiosk Unveiled at University Mall in Carbondale - IEMA, Central U.S. Earthquake Consortium project will help southern Illinois residents reduce damage, injuries from earthquakes
* Governor Takes Bill Action
* 2017 Budget Address

  
* LG Display hyped about iPhone 7s LCD orders
* Another evleaks scoop on Galaxy S8+ specs
* LTE-U to launch this spring on the T-Mobile network
* Leaked materials show Samsung Galaxy S8+ specs
* [Deal] T-Mobile is running an unbelievable sale on the Samsung Galaxy S7 and S7 Edge, LG V20
* Evan Blass shows Verizon’s Moto G5 Plus launching soon
* Packing photos and videos into one Instagram post is now possible

* Holland brings loose, fun personality to White Sox clubhouse
* Holy Holland! Pitcher brings fun to White Sox clubhouse
* Frazier to miss several days of camp with sore side
* Geo Soto, Gio Soto share bond beyond name
* Giolito feels work from offseason paying off early in camp
* White Sox earn praise for reshaping club
* Giolito feels work from offseason paying off early in camp


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

Archives
February 2017
January 2017
December 2016
November 2016
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

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




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