Wednesday, January 21, 2015

Private Lottery Operator Expected To Miss Income Targets Again

Hoosier Lottery sales are on a path to miss income targets during the current fiscal year by 15.6%, or about $50 million short, according to The Northwest Indiana Times' Dan Carden. Lottery income is expected to be about $270 million, which includes a $16 million maximum penalty the private operator, GTECH, is required to pay for falling more than 5% short of the income target. That penalty would be much higher than the $1.6 million penalty the company paid last year for failing to meet target.

Overall, the net profits are still a record number for the Hoosier Lottery even though it's less than the $320 million GTECH goal set by its contract. GTECH's chief operating officer Colin Hadden told Carden the company was "very disappointed" in the results, attributing the disappointing sales to market conditions. A lack of large jackpots in the Powerball game during the period have resulted in fewer sales.

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