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Commission Delays Vote On Outsourcing Hoosier Lottery

This convenience store in New Albany is where Sandy Kessler hopes to buy her second winning lottery ticket -- almost a decade and a half after buying her first here.

The State Lottery Commission’s decision whether to hire a private company to manage the lottery will wait another week.

The Lottery Commission began exploring the possibility of hiring a private company to manage the lottery in May. Last month, two firms, Scientific Games International and GTECH, submitted proposals.

Lottery Commission Executive Director Karl Browning gave commissioners a detailed presentation on the process up to now, but before they even heard the proposals, the commission pushed back the decision on which company, if any, they would choose.

“We do not have to do a bad deal,” Browning says, emphasizing that Indiana may not need to outsource the management of its lottery. “We have to do a good deal and a good deal can be defined as doing it ourselves.”

But Browning says it is difficult for Indiana to improve its lottery performance without using an outside company.

“The kinds of things that one has to do require a continuity of management,” Browning says. “In any state government agency – this one is not excluded – you can’t provide that. We’re guaranteed to turnover with an administration change.”

Browning says an independent firm estimates the lottery could improve its income by 40 percent to 60 percent.

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