ILL Lottery Private Manager Short On Profits

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Illinois officials say the state lottery's private operator faces a $20 million penalty because it fell $66 million short of its promised profits. Authorities said yesterday Northstar Lottery Group promised to generate $823 million in net income in fiscal 2012, but brought in $757 million.

Northstar official Avis LaVelle says the company is surprised and doesn't know how the state came up with its figures. The profit targets are part of an agreement between Northstar and the Illinois Lottery. State officials say Northstar must pay $20 million dollars if it doesn't reach the target. They also say it must pay the penalty even though its sales were nearly $400 million higher than in the last year the state administered the lottery.