Empty Jackpot for Minority Business

(Chicago Reporter) — Shaking hands with officials from the Illinois Lottery, Bob Dale felt like a winner. No, he didn’t win the jackpot or even one of those scratch-off cards. But his business, R.J. Dale Advertising, had just sealed a $100 million contract with the Illinois Department of Revenue, one of the largest contracts awarded to a black-owned business in Illinois.  But looking back on his big win now, Dale doesn’t feel so lucky. Low commission rates and sky-high legal fees from state audits meant R.J. Dale Advertising didn’t even make a profit for being the lottery’s chief advertising agency.  “Quite honestly, it damn near put us out of business,” he said.  The lottery, on the other hand, fared well. During its five-year contract term, revenue from the lottery increased by $490 million. Dale and hiscolleagues hoped that success would generate new business.  As it turned out, the lottery contract opened no new doors for the firm. Major corporations “didn’t care about the phenomenal success we had,” Dale said. “They just weren’t interested in hiring a black-owned business.”  Many minority business owners say they still face significant discrimination in the marketplace. To help remedy that, some states, including Illinois, have created programs to make sure that some government contracts go to diverse businesses.

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