Court won’t hold up state’s Lottery privatization effort

The union battling to prevent the state from privatizing parts of the Lottery operation suffered a partial setback in court today.

Superior Court issued a ruling denying the Communications Workers of America’s bid to stay the implementation of the contract being awarded to the private company the state hired.  The court said the CWA had not shown there would be irreparable harm.

However, CWA did win a motion to have the case heard on an emergent basis.

The CWA has been trying prevent the state from awarding a contract to Northstar, arguing that the company has a  history of abuse and that the multibillion-dollar Lottery operation has no need of private management.

The state is anticipating an upfront $120 million payment as part of the contract with Northstar, which would be for 15 years.

The state intends awarding a 15-year deal to Northstar New Jersey, a joint venture made up of Rhode Island-based GTECH Corp., Georgia-based Scientific Games International of Alpharetta and OSI LTT NJ Holdings.

As part of the deal, Northstar New Jersey 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, and the state is to receive an up-front payment of $120 million.

Governor’s Office spokesman Michael Drewniak issued a statement after the ruling.

“This issue has been completely mischaracterized and overblown by the CWA and some highly partisan Democratic legislators, and we are confident it will be put to rest in full in the courts in our favor.”

Earlier story:

CWA promises to take Lottery issue to court

Court won’t hold up state’s Lottery privatization effort