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Illinois State Lottery Lawsuit

Illinois State Lottery Lawsuit Against Northstar Lottery Group, LLC

The Illinois State Lottery Lawsuit seeks class-action status, compensating players who were affected by Northstar's fraudulent lottery scheme. Individuals who owned a retail location that sold lottery tickets prior to 2017 may be eligible to participate.

Litigation Updates

Discovery Began, Pushing for Trial Date in 2020

August 2018 - In April, we added two new parties: IGT Global Solutions Corporation (“IGT”), and Scientific Games International, Inc. (“SGI”). These two companies have ownership over the previous Defendant Northstar Lottery Group LLC. We have begun discovery on these parties and thus far have received in excess of 250,000 pages. We are hoping to start depositions in the winter and pushing for a trial date in early 2020.

Judge Grants Motion for Leave to Amend

April 24, 2018 - A motion filed by the plaintiffs of the Illinois Lottery Lawsuit for leave to amend in January, naming two additional defendants -- IGT Global Solutions Corporation (IGT) and Scientific Games International, Inc. (Sci-Games) -- and adding an additional claim of civil conspiracy against the defendants, was granted. Court proceedings have steadily continued.

Lottery Players File Lawsuit Against Private Managing Firm

The Illinois State Lottery lawsuit was filed in February 2017 in the Circuit Court of Southern Illinois St. Clair County, IL. The Illinois State Lottery lawsuit was filed on behalf of three lottery players and a lottery ticket distributor.

The lawsuit accusing the company Northstar Lottery Group, LLC of fraudulent behavior alleges Northstar, the company that runs Illinois lottery, defrauded businesses that sold scratch-off tickets and manipulated the odds for individual ticket purchasers.

After submitting a bid in 2010, Northstar became the private managing firm of the Illinois State Lottery.

A Chicago Tribune investigation uncovered that at some point after taking managing position over the Illinois State Lottery, Northstar initiated a scheme to withhold big prizes in its most popular scratch-off instant games. The scheme also unfairly skewed a player’s odds of winning to the player’s disadvantage.

The Tribune’s subsequent report exposed the details of the scheme: Northstar’s would dramatically increase the number of tickets printed so that the state lottery payout prizes would increase dramatically in-turn. Consumers, enticed by these huge payouts, bought more tickets. Once ticket sales began to plateau, Northstar would discontinue ticket sales abruptly, before all winnings, if any, were distributed or awarded. During this time, tickets sales were at their highest margin but the number of winning tickets plummeted – less than 60% of all grand prizes were ever awarded.

The lottery manager was created and is owned by two leading manufacturers of gaming machines and vendors in the lottery and gaming industry: IGT Global Solutions Corporation (IGT) and Scientific Games International, Inc. (Sci-Games). According to the plaintiffs, IGT and Sci-Games created Northstar as a subsidiary company in order to bid on the private contract and take control of the Illinois State Lottery in 2011.

According to a motion for leave to amend filed by the plaintiffs, IGT and Sci-Games participated in and helped to implement Northstar’s scratch-off ticket scheme. Acting as “sub-contractors”, either IGT or Sci-Games or both companies “participate or participated in the planning and decision-making processes relative to new lottery game offerings, game design, and terms (1); provide all, or substantially all, of the technical functionality required for the management of the Illinois Lottery (2);  representatives participate or participated in and make or made recommendations as to what game tickets should go into the retail market and what tickets should be warehoused (3).”

Both companies have since been named defendants in the Illinois State Lottery lawsuit.

Plaintiffs in the Illinois State Lottery Lawsuit have accused the three named defendants of tortious interference with contract, tortious interference with prospective economic advantage, common law fraud, violations of the Illinois Consumer Fraud & Deceptive Business Practices Act, unjust enrichment and civil conspiracy.

The Illinois State Lottery Lawsuit is seeking to reach class-action status, compensating any individuals who played the Illinois lottery during the period of time that Northstar managed and oversaw lottery operations.

The state of Illinois is currently investigating into the allegations made against Northstar. Illinois is in the process of finding a new managing firm to take over the lottery.

 

Can I participate in the Illinois State Lottery Lawsuit

We are currently litigating against the private companies that took over the Illinois Lottery. We believe there was a scheme to avoid paying consumers the large prizes that were promised with each ticket. THL continues to get press on this case, including the following articles:

In order to be eligible to participate in the Illinois State Lottery lawsuit, Individuals must be an owner of a retail location that sold lottery tickets prior to 2017.

Contact the offices of TorHoerman Law for a free no-obligation consultation on your potential case.

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