CHICAGO, Sept. 15 /PRNewswire/ -- Northstar Lottery Group was selected today by Gov. Pat Quinn (D-IL) as private manager of the Illinois Lottery. Northstar Group, led by a partnership between GTECH Corporation, Scientific Games Corporation and Energy BBDO, will manage operations and marketing to maximize lottery revenues under the state's new business model.
In making the announcement, Illinois Governor Pat Quinn said that Northstar's business plan anticipates an annual growth rate of 10.6 percent over the next five years, generating approximately $4.8 billion in net income. Northstar is also entitled to receive annual incentive payments should it achieve certain sales targets and has given assurances that provide for payments to the State of Illinois if a minimum, agreed-upon performance level is not achieved.
"We are very pleased with today's decision and look forward to the opportunity to responsibly grow the Illinois Lottery and take it into the future," said Jaymin Patel, CEO of GTECH Corporation. "Northstar produced a comprehensive and executable growth plan for the lottery. Based on our over 50 years of combined experience in the Illinois market, we believe our strategy will unlock the large potential of the business, in a responsible manner, allowing the state of Illinois to achieve long-term, sustainable growth and even greater returns for good causes."
Northstar Group's plan for responsible lottery growth hinges on seeking new players in new markets. It calls for doubling the amount of lottery retailers throughout Illinois and connecting with the more than 4.5 million light, lapsed and non-players in all communities across the state. The State's new business model will give the private manager much more flexibility and accountability over Lottery operations. In addition to providing lottery technologies to the state, the Northstar Group will now have the opportunity to implement innovative marketing initiatives and management tools to maximize revenues and increase efficiencies.
"As a member of the Northstar Lottery Group, we look forward to the opportunity to make the Lottery even more beneficial for communities around Illinois," said Michael R. Chambrello, President and CEO of Scientific Games. "We will seek to implement a sustainable growth plan for the Illinois Lottery that is designed to elevate it into the top tier of U.S. lotteries."
One of the foundations of Northstar's business plan is to work with a high percentage of diverse suppliers and vendors to grow lottery revenue and maximize returns to fund education and the capital program in Illinois. Northstar Group will exceed a 20 percent requirement of supplier and vendor contracts to businesses owned by women, racial and ethnic minorities and individuals with disabilities.
Additionally, Northstar Lottery Group will donate five percent of profits to support non-profit community organizations throughout Illinois. There is no cap on the amount that may be donated during the contract's 10-year span.
The Illinois-based Northstar Lottery Group will be led by Connie Laverty O'Connor, a 30-year veteran of the lottery industry and recent inductee into the Public Gaming Research Institute (PGRI) Hall of Fame. Jim Kennedy of Scientific Games, who was inducted along with O'Connor, will also have a leadership role in Northstar Group. The PGRI Hall of Fame recognizes individuals for their promotion of excellence and integrity in the industry.
Working with O'Connor and Kennedy will be a six-member Board of Advisors comprised of respected civic and business leaders across Illinois. Dick Devine, former Cook County State's Attorney, will serve as chair alongside Karen Hasara, former Mayor of Springfield; Manuel Sanchez, founding partner at Sanchez, Daniels & Hoffman, LLP; David Gupta, President and CEO of System Development Integration; Sharon Gist Gilliam, former CEO of the Chicago Housing Authority; and Rufus Williams, President and CEO of Olympus, LLC.
The Board will guide Northstar Group's community partnerships, diversity initiatives and charitable contributions.
For more information on Northstar Lottery Group, please visit www.northstarlotterygroup.net.
GTECH is a leading gaming operations and technology solutions company. With 7,600 people in more than 50 countries when combined with Lottomatica Group, GTECH provides operations management, innovative technology, creative content, and superior service delivery to effectively manage and grow today's evolving gaming markets. GTECH is a wholly-owned subsidiary of Lottomatica Group, one of the world's largest commercial lottery operators and a market leader in the Italian gaming industry. For more information about GTECH, please visit www.gtech.com.
About Scientific Games
Scientific Games Corporation is a leading integrated supplier of instant tickets, systems and services to lotteries worldwide, a leading supplier of server-based gaming machines and systems, Amusement and Skill with Prize betting terminals, interactive sports betting terminals and systems, and wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut, Maine and the Netherlands. The Company's customers are in the United States and approximately 50 other countries. For more information about the Company, please visit our website at www.scientificgames.com.
About Energy BBDO
Energy BBDO is a full-service advertising agency based in Chicago, and a unit of BBDO Worldwide. BBDO is part of Omnicom Group Inc (NYSE: OMC) (www.omnicomgroup.com), a leading global marketing and corporate communications company.
SOURCE Northstar Lottery Group