Lottery company failed all goals to success

Mr Christie is an owner of a Lottery in New Jersey. He bought this company about two years ago. At that time he would like to refresh the games and bring something new to these lotteries. He though that the game would reach a higher success.

Lottery Failure

But the situation turned in the other way, not as it has been expected. The lottery lost its positions as the top performer and got to the lower place. The previous year it targeted only $64.000.000 income. Though the company tries not to lose their initiative and spend huge sums of money to hire professionals in the sphere of international relations to make the situation better.

The lawmakers, working for the company, were expected to get a huge sum of money to the budget for the work during this month – $1 billion. But as for the present situation the sum decreased to $955.000.000. But the situation if the lottery is so bad that it has no opportunity even to pay this lowered sum, as it collected only $510.000.000 during the last seven months. As the lottery make funds to some of the organizations, in the present financial situation it is possible that these funds will be made lower. Among these organizations could appear organizations, which help invalids and deaf people.

The troubles of the lottery include also other problems concerning financial side of the question, among which there are problems with transportation, as it is also funded, and funding of pensions in the state. This week, a bit earlier, there was a hearing in the state assembly, where the lottery has been blamed for the absence of huge Jackpots like, for example, Powerball, and inadequate performance in the trends, which are popular worldwide at the present time.

The lottery makes efforts to make the situation better – it opens new stores, where tickets could be bought and make the budget bigger. But together with it the company haven’t managed to make its positions better.

One of the professor from the university in Illinois, who studies gambling, does not like when lotteries are privatized. In one of his interviews he admitted that though all these methods, which are proved by years and help to increase the income of lottery, do not always work correctly.

In the year of 2011 the lottery company asked one of the Australian banks to study their lottery and their methods and make some conclusions and help. The bank was paid $1.800.000 for this help. As the results told them, New Jersey lottery has always been the most successful lottery company in the country and made the highest profit ever. For the review all the privatized companies were counted.

So, it was recommended to privatize the lottery and the state has been asked to allow its work throughout the state.

The next step was taken the same year, when a friend of Christie, a law firm, was hired by Gtech. The owner of the firm, Mr Samson, was made the head of Port Authority in both New York and New Jersey. For handling the communications, Christie’s partner Mr Duhaime has also been hired.

In 2012 there was only one company, which was the bidder at that time. Earlier the state was searching for such a firm, which will be able to lead all the lotteries in the state. It happened, when it got a winning chance to control all the lotteries’ operation for 15 years. It was responsible for everything, concerning the games, starting with ticket sales and finishing all strategies in marketing and advertisements. But, for example, work with public relations, has still been given to the state.

But none of those responsible people answered letters and calls, which were searching for answers and explanations. In 2013 there appeared a law, which forbid any companies privatize the lottery, till they get the agreement of Christie.

Samsons company has been presenting the interest of the lottery for practically a year. It got $460.000 for its work during this whole period. Those, who were seeking for some explanations and send letters to the company, didn’t get any answers.

For a lot of years Samsons company has been in charge of the lottery and presented its interest. It made meeting with the officials of the state too. This information has been recorded by lobbyists. As Treasury Department said, there were no any records, concerning the company’s answer to different questions of the public. Afterwards the department confirmed that there was a small number of such letters, but they will not show them to anyone.

When Christie tried to make the privatization of the lottery, it was like a chance to make it a sort of business. But nowadays the situation changed. Earlier the lottery was under the control of the state and it spent less money to develop it and make some changes. But today’s owner does everything to make thing go better and tries to make the company to be at the top. According to the records, made during the whole last year, the lottery was run by the state also, but managed by Northstar. For that time it was spend more than $45.000.000 only to pay fees and taxes. The year before this sum had been $10.000.000 less.

The representative of Treasure Department believes that now the manager does well and controls all the expenses more correct, according to the present situation.

During the last year it was set a goal for the state income at $55.000.000. It was a goal of Northstar, but by now he was fell short of it. To avoid huge sums of money, which are counted in millions of dollars, as penalties, Christie decided to lower this sum.

As it was told to the public, the staff of the company did everything to improve the finances of the lottery. But everything they managed to do is to observe the latest financial records. In February public requested to show the latest report, and the copy of this document was provided to the staff.

As Northstar performed in the state of New Jersey, it cause other result in others states. There he also runs several lotteries. The last year company also didn’t reach its goals in Indiana and Illinois. It was for three years before the government would stop all the arrangements.

Though the record has been made, it does not give the full information towards those questions, which has been asked, and the criticism, which the company got. Instead of this, people were discussing the videos in the internet, concerning the lottery, and which of them were the most and the least popular.

There was a public meeting held last week. The executive of the lottery was there and answered a range of questions. They were mostly about the work and management of Northstar. He answered to one of the questions, that they are not going to have any discussions on the issue of contract and its details.

Those, who present the interests of officials, discussed a huge problem concerning of how to make the situation reach all the set goals of the lottery. The main problems concern financial sphere. As the meeting in February was held, one of the officials said that he believes, that people would spend more money buying tickets, because gas is now cheaper. Also it would be more interest among buyers because the payouts would become higher.

He also ensured everybody, that they have a lot of ideas, which will be driven true to life in order to attract more people into the game.


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1 Response

  1. Dana Stankovich says:

    I feel sorry for Christie 🙁

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