The Northstar Lottery Group now faces a civil suit after charges surfaced of alleged manipulation of lottery tickets.
Lottery operators have to adhere to strict guidelines when it comes to offering services. Rules and regulations vary from state to state across the nation, with operators facing stiff penalties and consequences when in violation of said regulations. In Illinois, the former lottery operator of the state is now facing a civil suit after charges were filed against the company accusing the operator of manipulating winning tickets.
Northstar Lottery Group Under Fire
The Northstar Lottery Group now faces a civil suit in the state of Illinois after a group of lottery players hired attorneys to represent them in their case. The players have accused the operator of manipulating winning tickets. A state local paper, the Belleville News Democrat, reported that the attorneys have filed a suit against the company accusing Northstar of defrauding local businesses that sold the lottery tickets as well as customers of the lottery.
Northstar was the operator in the state for some time and sold scratch-off tickets to local businesses and served the public by providing such gaming options. In the suit, the company is accused of manipulating the number of winning tickets that were available to be purchased along with other charges.
The company allegedly kept players from earning a big jackpot win by intentionally discontinuing the games before the tickets could be sold. On Monday, the St. Clair County court saw the lawsuit filed against Northstar but it is unclear as to how much in compensatory damages the plaintiffs are seeking in the case. An attorney for the plaintiffs, Derek Brandt, stated that the suit alleges that when Northstar realized they were ahead in a particular lottery game they would stop the game and earn a profit. For the lottery company to realize they were ahead, they simply looked at the number of tickets sold that did not see a winner. The winning ticket was never sold and the game discontinued.
The plaintiffs feel that Northstar deserves to be prosecuted due to the compensation of the company was connected to the net income of the lottery which gave Northstar the incentive to create as much revenues as possible while at the same time, paying out as little as they could by way of commissions and prizes. Basically, the company is being accused of profit motive within the lottery.
The company known as Northstar was created by two lottery vendors with vast experience in the gaming industry back in 2010. The company was the manager of the Illinois state lottery for a decade and made promises of profits for the state. However, the company stopped working in the state after lottery policies enacted in the state led to a negative affect by way of revenues.
Once Northstar was no longer the provider of lottery gaming, the state started taking in bids for a private firm to come in and manage the lottery. The lottery is a big deal in the state as funds are used to pave roads, repair bridges and fund the local schools.
For now, Northstar will have to choose to fight the allegations or try to come to a compensation agreement with the plaintiffs. It will be interesting to see what will happen in this case and if the players will be able to prove that the company’s motives were unjust and only for their financial gain.