New Jersey goes ahead with lottery privatisation

New Jersey governor Chris Christie’s controversial plan to partly privatise the $2.8 billion state lottery despite opposition from political, retail outlet and trade union quarters went ahead Friday with the announcement that the 15 year deal with Northstar has been signed.

Northstar NJ is a joint venture in which GTech and Ontario Municipal Employees Retirement System each own about 41 percent of the company, with Scientific Games owning about 18 percent.

The company was the sole bidder for the contract, offering to make an upfront $120 million payment to the state.

Services are expected to begin in October, the gaming company said in a statement.

The Communications Workers of America trade union has vowed to challenge the Christie administration’s decision to partially privatise the lottery, whilst Democrats in the state legislature and convenience store owners impacted by the decision have also voiced objections.

Related and similar