(Indianapolis, Ind.) - The Indiana Lottery Commission voted 3-0 Wednesday to privatize portions of the Hoosier lottery.
GTECH, a Rhode Island company, has been hired to take over marketing, sales, distribution, and other services. Governor Mitch Daniels said the move will help the lottery boost profits, which currently lag behind other state lotteries.
The governor called it one of the easiest and most obvious decisions the state has had to make during his eight years in office.
“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 be a violation of their legal duty to maximize that income,” Daniels said.
Indiana received $188 million in lottery proceeds last year. In GTECH’s bid, the company indicated it could bring in $1.76 billion over a five year period.
“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,” said Daniels.
The state will continue to run the finance and legal functions of the lottery. GTECH and the lottery commission could have the deal implemented in full by next summer.
As part of the deal, 125 state lottery employees will go to work for GTECH. Another 150 will remain employed by the state.