Hoosier Lottery Sets Revenue Record, Falls Short Of Goal
August 20, 2014 — TheStatehouseFile.com
INDIANAPOLIS – The company running the Hoosier Lottery came up just short of its revenue goals for 2014 – but made a record amount of money at the same time.
GTECH – a private management company that took over the Hoosier Lottery’s day-to-day operations in 2012 – had an estimated $250 million surplus for the year, falling just short of its $256 million dollar goal. The company will make up the difference to the state.
However, even without the additional payment from GTECH, the totals did beat the lottery’s record of $224 million in net revenues set just last year.
The total revenue came in at $1 billion, which is 9 percent higher than the record from two years ago.
“The Hoosier Lottery has had the best financial performance in its 25-year history, which perfectly aligns with statute, requiring the lottery to maximize revenues in a social responsible manner,” said Sarah Taylor, executive director of the Hoosier Lottery.
However, the Rhode Island-based company has had some trouble in other states, including Illinois where Northstar Lottery Group, a company owned by GTECH, was forced to end its relationship with the state three years into a 10-year deal due to performance concerns.
Even with these concerns, officials from the Hoosier Lottery and the state remain pleased with the company’s performance so far, and expect great things in the future.
“As a result of this upward trend, the state of Indiana sees over $250 million for FY 2014 efforts, and that’s money returning to local communities through local police and firefighter pensions, in addition to the Teachers’ Retirement Fund and the Build Indiana Fund, which helps reduce Hoosiers’ motor vehicle excise tax,” Taylor added.
“GTECH Indiana worked in a responsible manner to deliver significant revenue growth over the past year,” said William Zielke, chairman of the State Lottery Commission of Indiana. “At this point, they have undoubtedly delivered stellar results.
“We feel we made a good selection with GTECH Indiana as our partner, and we’re seeing the positive results of our decision.”