Camelot Illinois Bids to Manage the Illinois Lottery

U.K. National Lottery Manager Outlines Plans For Expanded Player Base, Diversity Engagement And Enhanced Social Responsibility

CHICAGO, Sept. 3 /PRNewswire-USNewswire/ -- Camelot Illinois today submitted its bid to manage the Illinois Lottery, highlighting  the  company's  successful  track  record  in  operating  lotteries,  and  its  longstanding commitment to social responsibility. Key components of the company's proposal include plans to broaden the player base across the state by drawing from Camelot's successful marketing, game creation and research in the U.K. to make the Lottery less reliant on lower income consumers. It also commits to diversity engagement targets, with plans to award at least 20 percent of vendor and supplier contracts to businesses that are owned by women, racial and ethnic minorities and entrepreneurs with disabilities.

The announcement follows last year's vote by the Illinois General Assembly approving the retention of a professional lottery management company. The company will be tasked with marketing and management in order to increase profitability, though the state will maintain Lottery ownership. Governor Quinn is expected to select a winning offer or by September 15.

"We're very proud of our bid and strongly believe that based on our long-standing record of successfully managing the U.K. Lottery, we can help maximize revenue for the taxpayers, and do so in a socially responsible manner," said Dianne Thompson, chief executive officer of Camelot Group. "In the U.K., Camelot has created a high-performing lottery that delivers strong revenues for good causes while operating in a socially conscious and responsible manner. We are very excited to hopefully take that experience and apply it to Illinois."

In addition, Camelot Illinois' proposal also outlines its approach to socially responsible gaming to help drive significant increases in Lottery revenue and its commitment to the Illinois community through a new charitable foundation. In particular:

• New Revenue for the Taxpayers: Camelot's bid forecasts that the Lottery can significantly increase its revenue through multiple new activities including new ways to broaden the player base and launch the Lottery on the Internet. Camelot operates the world's largest Internet lottery in the world and had the fastest growing website in the U.K. according to Nielsen's UK Online Measurement tool. The bid also outlines efforts to reduce supplier costs. Similar recent efforts in the U.K. have led to a 30 percent cost reduction through contract renegotiations with vendors and suppliers.
• Delivering More For Education: If selected, Camelot Illinois will create the Illinois Lottery Foundation, an independently managed fund that would award grants to educational programs and organizations across the state. Camelot Illinois committed to donating 10 percent of its profits up to $35 million during the contract's 10-year term to the foundation, which goes above and beyond the revenue dedicated to Illinois' educational system through traditional lottery sales.
• An Increased Commitment to Diversity: In addition to the 20 percent minority engagement target, Camelot's bid also stipulates that all prime contractors that are not diverse will be required to comply with the 20 percent MW/DBE requirement through subcontracting. Camelot will implement a supplier diversity program intended to grow the percentage of MW/DBE suppliers.
• Driving Down Costs: Camelot's bid is both vendor- and technology-neutral. That means Camelot can negotiate the best deal for the taxpayers without any conflicts of interest, since it holds no stake in any of the companies that currently supply the Lottery with goods and services.

"We believe we can fundamentally help the Lottery take several key steps: broaden the player base to help make it more progressive, improve profitability to provide more money for education, produce new savings by negotiating better deals with suppliers and vendors, increase diversity among suppliers, and donate up to $35 million to charity. We hope we are given the chance to do so," said Thompson.

Proven Track Record of Success

Camelot has a strong history of operational success. The company has managed the U.K. National Lottery since 1994, was a founding partner in the South African Lottery and is currently consulting with the California State Lottery team.

In fact, Camelot's close collaboration with the California State Lottery team has already brought immediate benefits through increased sales and a boost in returns to the State and the Education Fund. The business plan Camelot developed with Lottery officials, Project Renew, is expected to generate $2.25 billion in sales and $780 million in incremental profits over the next three years, excluding any benefit from prize payout reform.

In addition, Camelot Illinois CEO Jeff Perlee brings to Camelot Illinois a successful track record of U.S. lottery management as former General Counsel of the Illinois Lottery and Director (CEO) of the New York Lottery. During Perlee's tenure running the New York Lottery, the largest and most successful lottery in the U.S., sales grew by more than $1 billion.

"The combination of corporate successes and leadership who can draw from years of serving the public gaming industry makes Camelot Illinois a strong candidate to serve as private manager," added Thompson. "We are 100 percent focused on Illinois and the contributions we can make to transform the Illinois Lottery into a world-class operation."

About Camelot Group

Camelot has managed the U.K. National Lottery since 1994, delivering consistent growth and returning a higher percentage of Lottery revenue back to society than any other major lottery operator in the world, generating more than $37.5 billion for good causes since its inception. Camelot is also currently consulting for the California State Lottery – a collaboration that has already brought immediate benefits through increased sales and a boost in returns to the State and its Education Fund to the tune of $2.25 billion in sales and $780 million in incremental profits over the next three years.

SOURCE Camelot Illinois