Failed Illinois Project Costs Scientific Games

JV with GTech results in $19.7 million write-off

The release by Scientific Games this week of its Q3-2014 results (see earlier InfoPowa bulletin) gave industry observers a glimpse of the costs of the failed joint venture Northstar which the company entered into with GTech to run the Illinois State Lottery.

State governor Pat Quinn axed the project last summer, using the failure of the Northstar Lottery Group to deliver on agreed targets as justification and – as the results this week illustrate – creating a $19.7 million loss for Scientific Games, which had a 20 percent interest in the JV.

Illinois lottery officials plan to replace Northstar by next June, re-triggering political debate on the issue that has raged for several years (see previous InfoPowa reports).

The gambling supply company also disclosed that during its third quarter it had paid $8 million for its share of penalties due to Illinois for falling short of revenue targets Northstar contracted to reach four years ago as the first private manager of the state lottery.

Gtech Group will no doubt also reflect the cost of Northstar's failure when it posts its third quarter results.

Online Casino News Courtesy of Infopowa

More news

here.

About the Author... Total Posts Written: 9,449
Casinomeister

Casinomeister

The man with the plan here at Casinomeister. Bryan Bailey has been running Casinomeister since its launch in June of 1998. He has watched the industry grow from its primeval stage to what it is now. The Meister has attended nearly 100 conferences in the past 20 years and has either been a speaker or a panel moderator for at least 60 events. He has always been an advocate of fairness and reason and is known to like German beer, a good Scotch, and astrophography.
bryan@casinomeister.com

See More Posts