Indiana panel approves lottery outsourcing deal
Indiana's lottery commission is hiring a private company to take over its marketing and other services in hopes of boosting profits.
The commission voted Wednesday to approve a contract with Rhode Island-based GTECH that will pay the company $1.7 billion over five years. GTECH already provides and maintains vending machines for the Hoosier Lottery.
The new contract will have the company take over lottery marketing, sales and distribution services.
The state received $188 million in lottery proceeds last year.
Gov. Mitch Daniels released this statement:
"In eight years, this may be the easiest and most obvious decision the state has had to make. Our lottery revenues lag far behind most states. With this contract, the only question is how much more money Indiana will receive than under the current system. The simple step of moving the Hoosier Lottery from 88 percent to 95 percent contracted activity assures significantly stronger future net income. For the Commission not to move forward would a violation of their legal duty to maximize that income.
It's no longer my job to suggest how these additional state funds should be used, but it is my job to leave Indiana in the strongest possible financial shape, and this step will make the nation's most solid state fiscal position that much stronger."
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