Commission Endorses Private Firm To Manage Hoosier Lottery

The Indiana Lottery Commission has voted to hire GTECH to manage the state's lottery in hopes of boosting revenue.

Lotto

Photo: Dan Goldblatt/WFIU News

The deal should generate an estimated $100 million in tax revenue a year for the first five years.

The Hoosier Lottery will soon by managed by a private company…and lottery officials say the move will boost income for the state. The Lottery Commission voted unanimously Wednesday to begin contract negotiations with Rhode Island-based company GTECH.

The contract, which lottery officials hope to sign by November first, will shift sales, marketing and distribution responsibilities to GTECH for 15 years. Lottery Commission executive director Karl Browning says, based on projections, the deal will generate $2.1 billion more for the state over the length of the contract.

“For the first five years, the average is $100 million a year more than what the lottery would perform on its own,” he says.

The contract also has penalties and incentives. GTECH sets a threshold each year of what it expects revenues will be; if revenue exceeds that amount, the company gets a bonus from the state equal to the amount by which revenue was up.

If GTECH fails to reach the threshold, it pays the state the difference. And lottery commission chairman William Zielke says the state is not selling off the lottery. GTECH will report to the commission.

“I’m comfortable that if they come to us with something that’s outside of what we think are acceptable parameters, we have the ability to deny that as an opportunity for them to grow that business,” he says.

Browning says no Hoosier lottery employees will lose their jobs. Around 125 will be given the opportunity to work for GTECH while about 50 employees will remain with the state.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

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  • http://www.facebook.com/bob.eckert.50 Bob Eckert

    Now just wait for the reports of huge corruption in our state lottery! Wonder if Mitch Daniels got this set up with his buddies in the private sector before he became President of Purdue…..really disgusting development and it is the good uses that we put the lottery money to use that are now truly at risk.

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