Hoosier Lottery director offers reassurances on outsourcing

Sep 8, 2012, 8:49 am (4 comments)

Indiana Lottery

INDIANAPOLIS, Indiana — Indiana won't turn its lottery over to a private company if bidders don't meet the state's high standards, the executive director of the Hoosier Lottery said Friday.

The state has been seeking bids on a 10-year contract to run the Hoosier Lottery. Executive Director Karl Browning released a statement Friday, a day after a spokeswoman for Camelot Global Services, which runs the national lottery in Great Britain, told The Indianapolis Star it dropped out because the state's process encourages bidders to set expected revenues too high. Tatts Group Ltd., which operates several lotteries in Australia, also dropped out.

They were among four companies that submitted information to Hoosier Lottery officials for background checks in anticipation of submitting private management proposals. The other two companies that applied for initial background checks were Rhode Island-based GTECH, which supplies and maintains instant ticket and vending machines in Indiana, and New York-based Scientific Games, which provides the lottery's central online system and terminals.

Browning said officials won't release any information about the proposals until a Sept. 26 lottery commission meeting, when a contract might be awarded.

"If proposals meet our high standards and can significantly increase the lottery's annual income, we will consider moving forward; if they don't, we won't award a contract," he said in the statement.

The state received $188 million in lottery proceeds last year. State lottery officials and Gov. Mitch Daniels are hoping a private firm can boost lottery revenue.

"We have an obligation to test the market to determine if the private sector can bring more value to the lottery operation," Browning said.

Indiana officials announced in July that they would seek a 10-year contract for lottery marketing, sales and distribution services.

Illinois last year became the first state to agree to a private lottery management contract. That contract was awarded to Northstar Lottery Group, a partnership between GTECH and Scientific Games. Northstar brought in record revenue in its first year but fell well short of the $825 million it promised Illinois officials. The company and the state are in arbitration over the issue.

New Jersey and Pennsylvania also are considering switching to privately managed lotteries.



haymaker's avatarhaymaker

Jersey don't do this.

ppl. will be OK with the 1 year anonymity law if the game is run by state,

however anonymous + private company = I don't trust em.

NJJim's avatarNJJim

It's the sad march to the sea.  Privatization seems attractive, so the state can sit back and collect revenue without responsibility or overhead costs.  But it's simple math.  If any company want to win a bid, they will have to promise the moon, and that's on top of taking on all the overhead costs that made it such an unattractive task for the state!  They have to make that up someway... you guessed it - WE will be getting less value.  The private company will change the games to dramatically DEcrease odds in the consumer's favor. 

It will be a de facto casino - ravenously profit driven.  How's this sound?  Just spit-balling here:  No cash winnings back immediately at the point of play, or let's say only $100 max?  Oh but you can get more--- for a fee.  How about 3 bucks a play minimum on ANY game?  They will be free to do all kinds of changes and the state can just shrug at complaints, direct you to the private firm, and collect their dividends.   Here's a big one:  How about if they decide you must have a "Lottery Players Card" in order to play, like the supermarkets and others have all followed like sheep with these "savings club" cards.  That will mean at long last, a system would know every dollar you spend on lottery games, win or lose, and have you demographically tracked.  You won't get money back in cash - it will be "credits" and those credits can be eventually redeemed when you reach a certain level - at a fee of course!   If a creditor calls you and you say you are in a financial bind right now, they can say, " well maybe you shoulf have played x amount of money on gambling last month!"  Just like right now, CVS can see when you last bought Preparation H.  Don't want to be tracked?  Want to play like in the "old days" Suuuure, for an extra fee! Lord help me if I am actually giving these sharks IDEAS!

Sound crazy?  Middle agers: Would you have thought back in the day that you would be getting charged to get at your OWN money from ATMS, or be charged with you didnt keep enough in accounts?  We are the mice and someone is always thing up a more clever maze.


If the lottery is privatized, I wonder what controls will be in place to ensure that the lottery can't be compromised or corrupted.  Will the state provide oversight to ensure there won't be scandals like in the 50's game shows?  And if the Lottery is privatized (therefore no longer a public enterprise), is there now a need to disclose winners names & addresses, seeing as how the reason consistently stated to promote disclosure is to "ensure the public's trust in a governmental public operation"?

vjohnson8's avatarvjohnson8

IND lottery sucks,  its sad sad it dont payout bu pennies look at the pay outs 52 peoples hit a number straight,, so sid its embrassing,, greed and stealing from the poor

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