Tuesday, November 18, 2014
GTECH Expected To Miss Hoosier Lottery Revenue Target By 10%
The Hoosier Lottery learned it private operator, GTECH, expects to miss its revenue target this fiscal year by $31 million, or 9.7% below its contracted revenue target without incurring a penalty according to the Northwest Indiana Times. GTECH contractually agreed to a return of $320 million this fiscal year, but it now forecasts it will generate $289 million. The lottery attributes the lower-than-expected revenues to "lackluster ticket sales for Powerball and other big money draw games." If the revenue forecast holds up, GTECH expects to pay the maximum penalty of $16 million under its 15-year contract with the Hoosier Lottery. Officials with the Hoosier Lottery are not concerned about the lackluster performance because the lottery's revenues under GTECH's management are still higher than they were under state management.