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Indiana lottery vendor protests rival’s contract

– The Hoosier Lottery’s largest vendor is protesting Indiana’s decision to award a private management contract to a competitor, saying state officials discriminated against it throughout the contract selection process.

Attorneys for Scientific Games also said lottery officials failed to take into account transition costs that would be lower for the New York-based company since it is currently the largest Hoosier Lottery vendor.

Last week, the State Lottery Commission chose Rhode Island-based GTECH over Scientific Games to run the lottery’s marketing, sales and distribution services. Officials announced Friday that the state had finalized a 15-year contract with GTECH.

Scientific Games argued it should have been given a chance to improve its bid because the profit promised to the state in the two bids differed by only 1.7 percent.

GTECH promised in its contract proposal that it would generate $1.76 billion in profits for the state over the first five years of the contract. That is about $500 million more than lottery officials projected the lottery would bring in on its own.

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