In July, Illinois Lottery private manager Camelot Illinois released its business plan for fiscal year 2019 (ending June 30, 2019). A requirement of the 10-year private management agreement between the State of Illinois and Camelot, the annual plan outlines Camelot’s business objectives for the year as well as its strategy for managing and growing the Illinois Lottery.

The plan is the framework for an ambitious program as the new private manager for the lottery begins its first full year of operations. Under the plan, Camelot Illinois will work in partnership with the Illinois Lottery to establish new games and improved experiences for Lottery players, as well as growth in revenue to the state.

In FY19, Camelot is projected to deliver lottery sales of $3.03 billion, an increase of 3.5% over the previous year, slightly more than expectations outlined in the private management agreement. This sales increase is anticipated through 3.2% growth in instant ticket sales to $1.94 billion, and 4.2% growth in draw-based game sales to $1.09 billion. Overall, the plan is projected to result in a financial contribution to the state of $735 million, up an estimated 5.7% over the prior year. By the end of Camelot’s contract term in 2027, the company projects the net annual income to the state to exceed $1 billion.

To achieve this growth, the annual business plan focuses on strategies, goals and planned activities for marketing and branding, games, retail and iLottery, communications and corporate social responsibility.

“Our first year is a foundation year to establish operational fundamentals and build trust in the Illinois Lottery through responsible, transparent and accountable management,” said Camelot Illinois General Manager Colin Hadden. “Our long-term goal is to create an innovative, modern lottery that will attract new players and maximize financial returns to the state in a socially responsible way.”

Camelot projects Illinois Lottery expenses to be $2.3 billion in FY19, including $1.96 billion in prizes and claims, $114.1 million to fund the costs of sales and services, marketing and advertising and vendor fees, as well as $26.6 million in management fees.

Key highlights anticipated in FY19 include the transition to a new back-office central gaming system, new computer terminals in all retail locations, new vending machines and the launch of a new website and mobile app. In the second half of the year, Camelot plans to implement the roll out of a $15 million investment in point of sale equipment that will transform the presentation of the lottery in more than 7,600 retail stores across Illinois.

Also planned for FY19 are the launch of a new draw-based game that will offer winners regular payments for life rather than a single jackpot, enhanced training and support for retailers and initiatives to expand awareness of iLottery to acquire new customers.