Lottery management firm owes Illinois millions of dollars

By WEEK Producer

March 18, 2013 Updated Mar 19, 2013 at 10:50 AM CDT

CHICAGO, Ill. -- A private managing company owes the Illinois lottery $20 million for failing to meet revenue goals.

While the lottery had a record year in fiscal year 2012, sales still were not high enough to hit the expectations in a contract with Northstar. That management firm was supposed to reach $851 million in net income for the lottery but fell $94 million short.

The state is withholding payments to Northstar until the $20 million penalty is fully collected.

Meanwhile, Illinois Lottery Director Michael Jones is under fire from some quarters for European trips he took to research on-line gambling there. Jones said taxpayers only paid for one of the trips.

Meanwhile, Crain's Chicago business columnist Greg Heinz said memos indicate Jones urged lottery manager Northstar to hire his former employer
to do research.

Jones said complaints against him are coming from Northstar.

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