| $103 million drop in lottery ticket sales leads to $103 million payout for private company |
The private company that runs New Jersey’s lottery is on pace to reap more than $1.4 billion in profit — even as sales slump and the firm has successfully lobbied to lower its promised revenue targets for the state by $1 billion.
In effect, Northstar New Jersey will be paid more while it provides less revenue than promised to the state by the time its contract expires in 2029.
For example, Northstar oversaw a $103 million drop in lottery sales during 2017, but was still paid $103 million in fees and incentives, according to the lottery’s yearly report.
All that means less money could be going to prop up New Jersey’s ailing pension system, which now is the beneficiary of the revenue generated by the lottery.
“Anybody that represents the administration should be very interested in that amount of money that was awarded,” said Assemblyman Ralph Caputo, D-Essex, who heads the chamber’s gaming, tourism and arts committee.
| Read Mor at northjersey.com |