Illinois Lottery seeks new private management partner

On July 28, Gov. Rauner and the Illinois Lottery announced the release of a Request for Proposal (RFP) for a new private management partner. The new private management partner will share the Lottery’s goals of increasing profits to the state, responsibly broadening its player base, introducing new technology and innovation, and ensuring responsiveness to public needs and concerns.

In 2010, the previous administration poorly negotiated a contract, which resulted in the private manager consistently underperforming while being allowed to circumvent FOIA laws and withhold information from the Lottery and the public. The previous administration did attempt to terminate the contract in a deal that would have cost taxpayers tens of millions of dollars had it been allowed to go through. The Rauner Administration fought the implementation of that prior termination agreement and renegotiated its terms to improve taxpayer protections and save $22 million in immediate savings and $28 million overall for taxpayers.

“Our goal is to continue to provide the beloved games of the Lottery while also driving value for taxpayers,” Rauner said in a press release announcing the RFP.

The following goals are the guiding factors in picking a new private manager:

·         Eliminate conflicts of interest

·         Eliminate profiteering off of taxpayers

·         Incentivize Lottery to innovate and grow online sales

·         Eliminate risk of financial shortfalls to Common School Fund

·         Ensure greater transparency and openness

·         Prevent taxpayers from being hit by large termination fees

·         Create fair bidding process for all interested bidders

·         Expand and grow Lottery revenues and customer base

It is anticipated securing a new private manager will take 5-6 months.    

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