New lottery managers promise more games, more retailers, more profits

The new manager of the Illinois Lottery promises more creative, diverse and Illinois-specific games, more retailers selling tickets, a push to attract younger players, and higher profits.

The plans will be implemented by a unique new partnership between the state and Northstar Lottery Group, representatives of Northstar and the Illinois Lottery told the Daily Herald Editorial Board Monday.

Last week, Illinois became the first state in the U.S. to turn over management of its $2 billion-a-year lottery to a private company - a move intended to "grow" the lottery and generate an extra $1.5 billion in revenue for the state over the next five years, Northstar Chairman Jaymin Patel said.

The deal is expected to be signed in the next few weeks.

Northstar was chosen from among three companies that bid on the 10-year contract. The state will still have regulatory oversight and will work with Northstar rather than simply handing over all of the operations to them, Illinois Lottery Superintendent Jodie Winnett said.

The new management won't necessarily reduce the state's lottery expenses but it will make the lottery more profitable and efficient, Winnett said.

"This is all about maximizing net income," she said.

Democratic state Rep. Jack Franks of Marengo, an outspoken critic of the lottery privatization plans, called on Attorney General Lisa Madigan to investigate the deal, which he says "reeks of unfair advantage and insider dealing."

Also troubling, Franks said Monday, is that Northstar is a partnership of three companies that already have contracts with the state for lottery machines, instant tickets and marketing, so it will be "essentially managing itself."

If the privatization deal does proceed as planned, those who play the lottery won't see many changes until next summer, the Northstar and lottery representatives said. That's when nearly twice as many retailers could be selling lottery tickets and games.

Deals are in the works to bring self-serve lottery sales to big-box retailers and stores like CVS and Walgreens, which have been reluctant to sell lottery tickets because of the staff training required.

There also will be a broader range of games, including some specifically for Illinois residents, like "Millionois" and games that play off things people in this state like, such as local sports teams, said Northstar CEO Connie Laverty O'Connor.

Critics say Illinois' lottery relies disproportionately on older and poorer players, and research by companies bidding for the contract showed that there are more lottery machines per-capita in lower-income areas.

O'Connor said 73 percent of the lottery sales are to people over age 45, so Northstar will work to attract younger players.

One idea that's popular with young adult men is a "Win for Life" game that awards ongoing payouts and boasts "You keep living, we keep paying," O'Connor said.

Other ideas in the works include an "Extreme Green" game for eco-friendly players who want to recycle lottery tickets, and an extended play game for people who like to play for longer periods.

Northstar plans to realign lottery marketing, advertising and product development to help generate excitement about the lottery.

"The lottery image is, perhaps, not as exciting to a player now," O'Connor said. "The brand image will be more exciting, and perhaps people will try it."

Patel estimates the lottery changes will create 100 new jobs in Illinois.

"We're very excited," Patel said. "People (around the U.S.) are watching this."

The Associated Press contributed to this report.