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State Considers Outsourcing Lottery Operations

By Gretchen Frazee

Posted September 5, 2012

If Indiana follows through with its plan to hire a private company to manage its lottery, it will be only the second state to do so.

Hoosier Lottery spokesman Al Larsen says a business could bring more marketing, sales and financial management expertise than the state.

"A private vendor also has the ability to deploy significant resources and also assume some pretty substantial risk and do things on a rapid basis in a way that a state organization simply cannot," Larsen says.

Illinois is the only state that currently has a private company managing its lottery. Illinois Lottery Superintendent Michael Jones says Indiana officials should look to his state for suggestions, but they also need to carefully consider what's best for Indiana.

"If you go to any state in the United States that offers lottery products where its legal, you'll find that somewhere around 80% of adults in that state think the lottery is a good thing," Jones says.

So, Jones says, if states can harness that positive sentiment, they might not need to hire a private manager at all.

Four companies have placed bids for the job in Indiana. The Lottery Commission plans to make a recommendation to the state later this month on which company, if any, the state should hire to manage the lottery.

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State Considers Outsourcing Lottery Operations

By Gretchen Frazee

Posted September 5, 2012

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