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Another penalty for Northstar Lottery Group

The Northstar Lottery Group joint venture of Scientific Games Corporation and GTECH SpA is again facing the prospect of being fined by the Illinois Lottery for failing in its predicted sales targets.

The first enterprise of its kind in America, Northstar Lottery Group, in which GTECH holds the majority stake, was established in August of 2010 before being awarded a ten-year private management contract for the operation of the Illinois Lottery a month later.

According to a report from The State Journal-Register newspaper, Northstar Lottery Group is set to fall short of its goal for the year to the end of June despite recording a record amount of profits. The operator recorded profits of $793.5m but had earlier promised to bring in net income of $947m while its sales grew by six percent year-on-year to reach $2.8bn.

“The [Illinois] Lottery firmly believes that these profit figures can be reached with the correct strategy and tactics,” said Michael Jones, state lottery superintendant for Illinois.

“There are millions of people in Illinois who have all of a sudden started thinking the lottery is a pretty cool thing. The lottery had a pretty good year last year.”

Northstar Lottery Group also failed to reach its mandated targets last year and was asked to pay penalties amounting to $20m. However, the operator took the matter to court and the issue is still unresolved.

“We have to separate what the [Illinois] Lottery’s performance was and what the private manager’s performance was from a contractual side,” said Jones.

“I think we are on the right track and can reach these numbers with the right strategy.”