Why New Jersey’s Lottery Ticket Isn’t Winning

Two years after New Jersey Gov. Chris Christie privatized much of the state's lottery operations, a big payoff remains out of sight.

Christie promised streamlined costs and bigger cash haul for New Jersey's perennially cash-strapped government when the system was privatized in 2012. But in spite of record ticket sales, the system posted its worst return in 40 years.

Higher costs associated with the private company that Christie hired, Northstar New Jersey, have cut the state's income for the second straight year, leading to a $136 million shortfall in the state's 2015 budget.

Dustin Racioppi, statehouse reporter for The Record, told WNYC's Jami Floyd that the results are so poor, the state is entitled to fire the company if its performance does not improve in this fiscal year.

"The contract does allow for New Jersey to get out of it completely," Racioppi said. "This is what the Democrats say: 'We hired them to maxmize the profits for the state and all they've been doing so far is losing money.'"

Northstar New Jersey's contract with the state runs through 2029.