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Lottery has record $1 billion in sales

Operator to return $248 million to state

– The Hoosier Lottery’s new private operator increased sales to more than $1 billion for the first time in history.

But it is unclear whether it will meet its contract goal of returning $256 million to the state.

The books won’t be closed until Thursday – and the numbers won’t be audited until at least September – but the projected sales for the fiscal year are $1.019 billion. The sales figure that GTECH Indiana had hoped to hit was $1.056 billion.

GTECH Indiana will return $248 million in surplus revenue to the state to cover excise, pension and other obligations, a news release said. Lottery officials said in May that that is the revised goal after commission salaries and other expenses are taken out. So it is unclear whether GTECH Indiana owes the state extra cash.

In comparison, $224 million was returned to state coffers last year, so there was a 10 percent increase under GTECH Indiana.

“The Hoosier Lottery experienced a remarkable year, and our record contribution to the state of Indiana underscores our commitment to maximizing revenue in a socially responsible way,” said Sarah Taylor, executive director of the Hoosier Lottery. “We now have two consecutive years of record surplus revenue to the state, and that’s a win for everyone.”

GTECH spokeswoman Angela Geryak Wiczek said audited bid net income and provider net income results won’t be available until October. Those calculations are needed to see whether GTECH Indiana met its obligations.

The company was tapped in late 2012 to take over a large portion of operations of the Hoosier Lottery. It handles day-to-day management over marketing, sales and distribution, such as retailer recruitment, game development, advertising and supply issues.

The State Lottery Commission through its state employees still handles security, prize payments and accounting. The five-member board also approves GTECH Indiana’s annual business plan.

After a transition and ramp-up period, GTECH Indiana began implementing its full business plan in July 2013.

nkelly@jg.net

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