EXCLUSIVE: Lottery Post reveals the Virginia Lottery's cost-cutting plans
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According to unnamed sources, the Virginia Lottery is planning a series of cost-cutting moves that could send shock waves through its staff and the industry:  the Virginia Lottery will be seeking bids to outsource all functions of its operations.

The Virginia Lottery is expected to announce requests for bids on its Web site at www.valottery.com.  No department has been spared from consideration, including the computer center, warehouse, sales, retailer support, telephone sales, and more.

The official word to employees is reportedly that Lottery Director Penny Kyle will put all jobs out for bid to see what bids come in, and then decide whether to accept the bids or to keep the jobs in house.  Bids will be due by mid-May.

Sources in the Virginia Lottery say Ms. Kyle was impressed with the low cost structures that had been coming out in the latest contract renegotiations, and calculated that she could save even more.

The news created a somber mood around lottery headquarters, as employees were given word of the possible loss of their jobs through a voice mail message.

Even though Ms. Kyle's message asked Lottery employees to continue work as usual, workers remain uneasy and confused by the suddenness and approach of the action.

"The right way is to do a study to determine which functions could have potential savings through outsourcing, and then give plenty of notice to those workers, in face to face meetings, about what the plan is," stated one affected worker.  "The wrong way is to say, 'Let's see what we can get for bids for each part, and then we'll accept the ones we like' and then to let all of the affected employees know via a voice mail message."

The source continued, "It is also unfair to all of the companies who will want to put in proposals if Penny and the board, after all the proposals are turned in, can say 'never mind, we're keeping it in house'.  Unfortunately, some very good people are getting jerked around."

Virginia Lottery Director Penny Kyle could not be reached for comment.

Developing...

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