Another Money Shortage
Not only has the lottery company missed projected revenue targets (each of which was used in the Illinois budget), but now it turns out they haven't even paid the fine associated with last year's missed numbers::
- For the second straight year, the company hired to turn around stagnant sales at the Illinois Lottery has fallen short of the revenue it promised to generate for the state, according to a Tribune review of the lottery's sales and expense figures for the past year.
Unofficial year-end results for the 2013 fiscal year, which ended June 30, show Northstar Lottery Group posted net revenue of $804 million, about $143 million less than promised. As a result, the company may be required to pay the state more than $40 million in penalties, according to the Tribune's analysis.
The company still owes the state $20 million in shortfall penalty payments after it missed profit goals by nearly $70 million in the 2012 fiscal year, when it became the first private company to run a state lottery in the nation.
The deadline for payment of the 2012 penalties was Wednesday, and as of close of business, the lottery had not received any of the money it is owed, Lottery Superintendent Michael Jones said.
Luckily, the state can get some of the fines from a security deposit, but that's a finite source, especially after two straight years of missed projections. Looks like those who called this a "controversial bidding process" were right once again.
Labels: money questions
posted by SCC at 12:01 AM
13 Comments:
QUICK!
YOU WORTHLESS MUTTS WITH THE MEDIA!
Which member(s) of Rahm & Co., Daley Inc. or The Illionois Combine has either a direct or hidden interest or a personal relationship tie to Northstar Lottery Group by injection, ingestion or gestation?
Somebody got their dick wet on this sad-assed deal...
Not a single politician in this state should be allowed the air and opportunity to move freely without a tax-payer foot blasting a divot out of their ass...
How's about the State SUSPENDS the contract until the money is paid?
But, no; WE keep paying the underperforming, deadbeat lottery company.
Withhold the money until the fine is satisfied
What a joke this corrupted city is.
From what I remember about this outfit is that they were asking the city to redo their contract resetting the revenue targets to the exact level of the competing company that they out bid.
Meanwhile, start selling the city assets LIKE Detroit for pennies on the dollar to investors from China.
Oh no-no-no, city privatization is good. It will bring in "the much needed cash".
But guess what kids!
Corporate interest already determine who goes on the election ballets. That's why it doesn't matter if it's a Republican or a Democrat. They've already been bought and paid for by the corporate money and are beholding to them not us.
So guess what happens to your sovereignty when all the corporations and assets of your city belong to China. The politicians will be beholden to them so get ready for the sweat shop work camps like the company Foxconn that makes the Iphone and many other electronic wizardry.
Foxconn, the company with nets around the roof of their factories to catch the employees that try to commit suicide.
We are witnessing the sell out of America plain and simple and not a single shot will be fired.
My husband came home recently and said he was told by a cashier he had to fill out a new card because the program changed. The change? They doubled their prices. Now I know why. No more lottery for us.
Shit, you can't hit a win.. I've been playing the same lotto numbers for over a year (3 boards)and only hit $3.00 about 5 times.. Now they have a new version; I'm done.
I hit more in Indiana...
Yesterday I created an Illinois Lottery account to purchase tickets online. I tried to buy a $5 Powerball ticket and the results was" System temporarily unavailable". I tried Lotto and Mega games with the same unsuccessful results. I then erased my credit card Info from my newly created account and went to my local 7 Eleven store to purchase tickets. And they wonder why sales are down.
After all the salaries revenues are paid to the Lottery officials, staffing, vendors, contractors, insiders, and investors, the "it's for the kids" school funding ...the actual take is probably 20%.
What a flim-flam.
What? A state agency is holding a private company's feet to the fire and enforcing a contract? Sounds like something being done right not wrong. $20M isn't chump change and the article says they are collecting it. And, $40M more to boot.
"when it became the first private company to run a state lottery in the nation."
.....and who, pray tell, is the company owner(s) related to in IL politics? May as well have the mafia controlling this state/county/city.
Oh wait a minute, the mafia disguised as politicians are already doing that!
I wouldn't worry about Northstar making too much on Lottery. This a pretty competitive field so that likely bid aggressively. Here is the problem. The Illinois Lottery has 182 employees now - even after outsourcing basically all the work to Northstar. In 2008, the DoR department that regulated Lottery, Liquor Control, Gaming Board and Racing Board had 302.
Waste of money.
Anonymous Doc Holiday said...
Yesterday I created an Illinois Lottery account to purchase tickets online. I tried to buy a $5 Powerball ticket and the results was" System temporarily unavailable". I tried Lotto and Mega games with the same unsuccessful results. I then erased my credit card Info from my newly created account and went to my local 7 Eleven store to purchase tickets. And they wonder why sales are down.
8/02/2013 08:30:00 AM
You really trusted an outsourced website with your name, social security number and your charge card info?
I'm laughing too hard to type.
played the same little lotto numbers for 30 years.. first it was once a week than twice till they reached 7 days.. I allow myself $7 a week to gamble.. I usually won back about 1/2 the money I played.. than the pots got LOWER and LOWER when they pulled more days.. HOWEVER.. when they went to DOUBLE the cost and 1/2 the winnings I quit..So now instead of giving the state $28+ a month I give the $0.. Just like when they raised the tolls.. I quit using them to go visit my daughter in the city they use to get $2+ (with the ipass) a week..$104 a year..(unless I went to the city more where as they made more) they now get $0 .. when will this state learn?? they lose money on EVERYTHING .. gas, smokes, food, lotto all being bought in IN.. at huge savings and better results..
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