Diversity Groups Show Support for Camelot

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by Wendell A. LaGrand

Several organizations are supporting a change in the state lotterys current operational and marketing strategy. The current system is a regressive model that relies disproportionately on revenues from low income communities, says a joint statement recently released by a consortium of local diversity groups. According to a recent Duke University study, 5 percent of

lottery players account for 50 percent of ticket sales. State governments spend millions of dollars promoting this point of view by targeting low income people with advertisements and easily available lottery machines, the study says.

Selecting a private management firm to guide the Illinois Lottery, poses a very good question, who is the best choice? Five leading diversity groups have announced their support for the British lottery firm Camelot Group to manage the Illinois State Lottery.

The Chicago Urban League; Illinois Hispanic Chamber of Commerce; Womens Business Development Center; Chicago Minority Supplier Development Council and the Chatham Business Association are urging Governor Pat Quinn to choose Camelot on, or before September 15.

For the business, its a great opportunity to be brought to the table. The fact that we were

consulted on [a] way, to have minority participation is a great benefit. Its always helpful in

our job of advocating for business, said Melinda Kelly, executive director of the Chatham Business Association.

We are impressed and encouraged to see that Camelot Illinois has committed to diverse

prime and subcontracting vendors, going so far as to specify inclusion in the amount of

20 percent in each case, said Omar Duque, president and CEO of the Illinois Hispanic Chamber

of Commerce, representing 72,000 businesses. For years, the Illinois Lottery has had a bad track record when it comes to supplier diversity. This contract is an opportunity to change that and selecting an offeror who is committed to diversity is the only way we can. We urge Governor Quinn to take this important component into consideration when he selects the winning company next week.

Northstar Lottery Group, a partnership between the GTECH Corporation and the Scientific Games Corporation, is the holder of current Illinois Lottery contracts. Energy BBDO is an advertising partner.

Leaders of the organizations voiced support for Camelot citing the companys commitment to supplier diversity, and because it will award at least 20 percent of the lottery supplier and vendor contracts to racial and ethnic minorities and entrepreneurs with disabilities.

If the contractors are not of ethnic backgrounds, the company will then require that minority subcontractors be hired, according Camelot spokesman Jerry Lawrence.

The companys history of success in lottery management, having run the United Kingdoms National Lottery since 1994 and currently serving as a consultant to the California State Lottery, is also why the leaders said they support Camelot.

According to its proposal, Camelot is committed to creating an independently managed

fund called the Illinois Lottery Foundation, which would award grants to educational programs and organizations statewide.

Additionally, the company says it will donate 10 percent of its profits, up to $35 million, during

the contracts 10 year term.

Leaders of the group also said the company did not present a conflict of interest because it is

not currently a vendor. Northstar, like Camelot, also unveiled its plans to provide responsible gaming.

We are confident that our plan will achieve long term sustainable and responsible growth for

the Illinois Lottery and substantially improve financial returns for good causes around the state,

said GTECH President and CEO Jaymin Patel in a written statement.

The Northstar business plan outlines its commitment to Illinois charities and supplier diversity.

Five percent of Northstar Lottery Groups profits will go to support non-profit organizations

serving their communities throughout Illinois. There is no cap on the amount that may be spent over the 10-year span of the contract.

Additionally, the group says that at least 20 percent of its lottery supplier and vendor contracts will be awarded to women, racial and ethnic minorities and individuals with disabilities.

We plan to far exceed that number, said Margarite Wypychowski, a spokesperson for Northstar. A cornerstone of Northstar is growing revenues by attracting new players, she said.

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