Indiana panel approves lottery outsourcing deal - 14 News, WFIE, Evansville, Henderson, Owensboro

Indiana panel approves lottery outsourcing deal

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INDIANAPOLIS (AP) -

Indiana's lottery commission is hiring a private company to take over its marketing and other services in hopes of boosting profits.

The commission voted Wednesday to hire Rhode Island-based GTECH in a deal that is expected to net the state an additional $500 million over five years. GTECH already provides and maintains vending machines for the Hoosier Lottery.

Lottery officials say they expect revenues to increase by a total of 50 percent over the course of the 15-year deal.

The company will take over lottery marketing, sales and distribution services once the final contract is negotiated.

Lottery director Karl Browning says GTECH will likely increase revenue by expanding sales to groceries, big box and discount stores.

The state received $188 million in lottery proceeds last year.

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**Here is a statement from Governor Daniels about the Hoosier Lottery Commission's decision to contract for additional services:

"In eight years, this may be the easiest and most obvious decision the state has had to make. Our lottery revenues lag far behind most states. 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."

"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."