Gov. Chris Christie’s decision to privatize New Jersey’s lottery two years ago has yet to pay dividends, according to a report Tuesday by The Associated Press.The AP reports that documents show Northstar New Jersey, the private company hired by the state to run the lottery, has seen the state’s income fall over the past two years, resulting in a $136 million shortfall in the 2015 state budget.
Though the state contract requires Northstar to pay a fine for underperformance, the maximum penalty is capped at 2 percent of the state’s income, meaning this year’s total is just around $14 million, according to the AP.
Given the statistics, the state would be able to terminate its 15-year contract with Northstar without having to refund the company the $120 million advance it gave for expected profits.
A Sunday report by The Record also noted that the state is still expected to pay Northstar around $100 million this year for its services.