Illinois seeks a new private firm to run their troubled state lottery

In the current scenario, it is important for each state and even an organisation to have a sound structure as well as well planned operation in order to move ahead properly. Whatever business you are in it is the need of the hour to keep your customers happy so as to they keep you in business. However, this is not true for everyone and the state of Illinois in their first attempt of privatisation of their Illinois Lottery were widely criticised as well as failed miserably. Now the process of finding a new player has started once again. Illinois has opened up the bidding process once again for the second time for private firms to manage their lottery business. This lottery business is considered to be the state’s bread and butter in funding schools and for roads and bridge repairs and construction. In the earlier attempt the state has already failed and was not even able to pay prize draws to the winner which has already drawn state into lawsuits.

Gov.Bruce Rauner announced on Thursday that the state was opening the bidding process for a private firm to take over the operations and management of the state’s largest business venture.

Gov.Bruce Rauner said:

“Our Illinois Lottery has been very poorly run and has failed to meet expectations for years,”

If the administration is not able to find a firm who can run this state venture to its liking that the Governor floated the idea of forming a quasi-government agency to run the state lottery venture.  However, this quasi-government agency and idea need to be approved by the legislature first. The nation has already tried their first experience of privatising lottery management which has been a great failure and this venture is seen as a disappointment by both Republicans and Democrats.

The state hired a private firm to manage the day to day operations of the lottery in exchange for a small cut of the profit after the federal officials refused to let the cash-hungry state sell the lottery business. In 2010 this process was strictly criticised by state auditors and the state picked Northstar Lottery Services. Northstar was allotted this 10-year deal because of promises made for profits for the state. The firm was never able to meet those profit numbers all these years and the state fought to penalise Northstar for failing to meet the targets. The company will keep running the lottery until at least Jan.1, 2017 till the time state hopes to pick up a new private firm to take over the management.

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