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Indiana panel approves lottery outsourcing deal

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press
Wednesday, October 3, 2012 - 11:22 am

INDIANAPOLIS — Indiana's lottery commission voted Wednesday to hire a private company to take over its marketing and other services in the hopes that it will boost the lottery's profits by about $100 million a year.

The commission voted 3-0 with two members absent 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.

Officials expect the new deal with GTECH will increase profits by about $500 million over the first five years of the 15-year contract, said Karl Browning, the Hoosier Lottery's executive director.

"I can't find a scenario in which no matter what, the taxpayer isn't better off," Browning said.

GTECH was selected over a proposal from New York-based Scientific Games, which currently provides the central online lottery system, terminals and instant tickets for the Hoosier Lottery.

Private companies already handle 88 percent of lottery operations and the outsourcing proposal would increase that to 95 percent, Browning said last week. Indiana would retain full ownership and control of the lottery, he said.

Browning has said part of the increased revenue would come from a plan to "broaden the player base."