TRENTON – State officials announced Friday afternoon plans to award a 15-year contract to a private company to take over the New Jersey State Lottery’s marketing and sales operations.
The Department of Treasury plans to award Northstar New Jersey Lottery Group the contract.
As part of the agreement, New Jersey is set to receive $120 million upfront once the contract is finalized.
Northstar New Jersey also agrees to generate at least $1.42 billion of total additional net income for the state through lottery operations over the life of the contract, according to the Department of Treasury, which says moving toward privatization could bring in more than $1.42 billion beyond what the state could expect if it didn’t privatize the New Jersey Lottery.
“For more than 40 years, the lottery has provided critical financial support to New Jersey’s institutions and educational programs,” State Treasurer Andrew Sidamon-Eristoff said in a statement.
“The contract we plan to enter into with Northstar New Jersey protects that legacy commitment to New Jerseyans by positioning the Lottery for sustained growth and continued success in the face of an increasingly complex and competitive marketplace,” he said.
The announcement comes after numerous Democratic lawmakers objected to the administration’s plans to move forward with privatization. They criticized Sidamon-Eristoff for not giving them details of the privatization and said the fact that only one company submitted a bid should be cause for concern.
The full Assembly voted to pass a bill that would require legislative approval for lottery privatization.
Northstar New Jersey is a joint venture made up of Rhode Island-based GTECH Corp., Georgia-based Scientific Games International of Alpharetta and OSI LTT NJ Holdings.