NJ To Award Lottery Privatization Contract
New Jersey's Treasury Department plans to award a sales and marketing contract for the state lottery to a private company.
Treasury officials announced Friday a "notice of intent to award" a 15-year contract to Northstar New Jersey Lottery Group.
The Treasury Department says Northstar has agreed to pay $120 million to the state upon the execution of the contract, and commited to generating at least $1.42 billion of total additional net income for the state from the contract.
New Jersey has the nation's eighth largest state lottery. The lottery grossed $2.8 billion in revenue last year.
Northstar NJ is a joint venture consisting of GTECH Corporation of Providence, R.I., Scientific Games International of Alpharetta, Georgia, and OSI LTT NJ Holdings, a unit of the Ontario Municipal Employees Retirement System (OMERS).
(Copyright 2013 by The Associated Press. All Rights Reserved.)