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Hoosier Lottery operator facing $3.6M fine for not meeting sales goal

May 22, 2020, 7:24 am

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Indiana LotteryIndiana Lottery: Hoosier Lottery operator facing $3.6M fine for not meeting sales goalRating:

By Kate Northrop

INDIANAPOLIS, Ind. — IGT Indiana, the private operator of the Hoosier Lottery, may be required to pay a $3.6 million fine to the state should it not meet its $300 million sales goal — a number that seems unobtainable at this point.

The lottery is projected to generate about $295 million to be sent to state coffers, which would include the $3.6 million penalty should they not meet the threshold.

Last year, the lottery sent a record $312 million to the state in surplus revenue, 6% higher than what is expected this year.

Under the lottery privatization contract revised in 2015, the state lottery's contributions work to reduce state excise taxes and help pay for pension obligations for public employees. Last year when $312 million was transferred to the state, IGT Indiana received a bonus performance payment of $11.2 million.

This year, if IGT Indiana somehow manages to exceed expectations and boosts net income above $310 million by June 30, it will split the surplus with the state.

It's not a surprise that the Hoosier Lottery is one of the many state lotteries that have taken a sales hit due to COVID-19. 224 lottery retailers were closed for varying durations during the past few months.

Carrie Stroud, chief of staff for the lottery commission, cited the lackluster jackpots in major games like Powerball and Mega Millions as a reason for the dip in addition to the coronavirus pandemic. "No Powerball or Mega Millions jackpots this year have hit $400 million yet," she said. "They've just kind of rolled and gotten hit at lower amounts." More casual players will tend to jump in and buy tickets when multi-state draw game jackpots near a half-billion dollars.

Taking into account a six-week stay-at-home order in Indiana, a more holistic perspective of the sales dip makes it seem surprisingly modest.

Sales for non-jackpot draw games like Daily 3 or Cash 5 are up $3.9 million, or 3.4%, compared to last year. Scratch-off sales have proven to be a beacon for many lotteries, with revenue in Indiana up $35.5 million, or 4.4%, since last year.

"It's surprising we have continued to do as well as we have," lottery commission member David Redden said. "Even though it's a shortfall it could be a lot worse."

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8 comments. Last comment 5 months ago by DELotteryPlyr.
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Raven62's avatar - binary
25
New Jersey
United States
Member #17842
June 28, 2005
132190 Posts
Offline

Future Contracts will contain a Force Majeure Clause!

A Force Majeure Clause is a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise. (ie: The current COVID-19 pandemic!)

A mind once stretched by a new idea never returns to its original dimensions!

Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.

Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.

    Unlucky-Kenny's avatar - Cigar B1.gif
    HUDSON, WI
    United States
    Member #202058
    November 7, 2019
    1455 Posts
    Offline

    Future Contracts will contain a Force Majeure Clause!

    A Force Majeure Clause is a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise. (ie: The current COVID-19 pandemic!)

    If you were going to go into business of something on a large scale - like I don't know - the lottery?

    You would think they would already have had that!

    Skeptical

      Avatar
      Chasing $ Millions.
      White Shores- California
      United States
      Member #136473
      December 12, 2012
      6337 Posts
      Offline

      I guess Covid 19 or not, if the rubber band breaks, you only have yourself to blame huh? In a way it's no different from getting a ticket from the highway patrol for driving too slow. I have seen it & it's brutal especially when the driver & the occupants are in their 70's or 80's.

      * Take me down to the river, let it rush over me...Roll Eyes

       * Voice of Reason *   

       

      People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

        cottoneyedjoe's avatar - cuonvFT

        United States
        Member #197033
        March 28, 2019
        548 Posts
        Offline

        Filed under "too bad, so sad."

        ... Sooper dooper top seekrit winning numbers: 5 16 17 24 33 52 ...

          vjohnson8's avatar - Lottery-050.jpg
          fort
          United States
          Member #72405
          March 17, 2009
          9234 Posts
          Offline

          Stop cheating so much with a low 1 percent payout uslottery players,alot of players stopped playing because of all of the repeating of the same number!!

          LET's get paid$$$$ money rollYes Nod

            Avatar
            Kentucky
            United States
            Member #32651
            February 14, 2006
            8998 Posts
            Offline

            Stop cheating so much with a low 1 percent payout uslottery players,alot of players stopped playing because of all of the repeating of the same number!!

            "alot of players stopped playing because of all of the repeating of the same number!!"

            Reminds me of when players complained when Tennessee went over a month with no doubles in their pick-3 and pick-4 drawings. I guess it didn't occur to them the odds dropped from 1:1000 to 1:720 and from 1:10,000 to 1:5040 in the pick-4. 

            If the same numbers are repeating, why aren't you making a killing play the "same numbers"? Just wondering.

            Mister we could use a man like Herbert Hoover again

              Raven62's avatar - binary
              25
              New Jersey
              United States
              Member #17842
              June 28, 2005
              132190 Posts
              Offline

              "alot of players stopped playing because of all of the repeating of the same number!!"

              Reminds me of when players complained when Tennessee went over a month with no doubles in their pick-3 and pick-4 drawings. I guess it didn't occur to them the odds dropped from 1:1000 to 1:720 and from 1:10,000 to 1:5040 in the pick-4. 

              If the same numbers are repeating, why aren't you making a killing play the "same numbers"? Just wondering.

              I Agree! Play what's Hot not what's Not!

              FWIW: Repeating Combinations are Hot!

              A mind once stretched by a new idea never returns to its original dimensions!

              Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.

              Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.

                Avatar
                Maryland
                United States
                Member #162429
                January 2, 2015
                2303 Posts
                Offline

                Nice to see the state & players get a WIN for a change. Cheers

                We read so many stories about the players & states getting screwed!