American lottery has asked for ‘expressions of interest’ from private firms interested in managing its operations for the next ten years.
Friday 28th May 2010
In America, the Illinois Lottery has asked private firms for ‘expressions of interest’ in managing its operations for a period of up to ten years with a winner due to be announced before the end of the year.
As part of a plan to increase revenues, the state’s General Assembly mandated last year that a private company be brought in to manage the Illinois Lottery and sell tickets over the Internet.
Proceeds from the Illinois Lottery, which is the state’s fifth largest revenue generator, are used to support educational programmes and will also form a significant portion of the monies needed for a raft of planned capital projects. It generated two billion dollars in revenues over 2009 alongside $630 million in free cash for the state and has contributed nearly $15 billion since its establishment in 1974.
Although successful, the Illinois Lottery has had per capita sales below average and is facing increased competition from other forms of gaming. The state revealed that the successful bidder would be expected to provide the capital and know-how to increase sales and meet competition.
“Illinois has been struggling with outdated hardware and software programmes,” said Jodie Winnett, Acting Superintendent for the Illinois Lottery.
“The private manager will provide funding for state-of-the-art technology that will allow for more exciting games and customer interaction while reducing costs. The private manager also will be expected to introduce best practices in management, marketing and socially responsible gaming.
“The private manager will provide the expertise necessary to bring the Illinois Lottery to the Internet, which the General Assembly has mandated under a pilot programme pursuant to Federal authority. This will open a channel that will connect the Illinois Lottery with a large group of new customers, many of them younger, who prefer to play online.”
