The Washington Post

The Indiana lottery didn’t meet its revenue goals, but it still set a record

 (By Linda Davidson / The Washington Post /File photo) to move into Kelly's mother's basement in Michigan in the coming month. PICTURED: As part of his Monday routine, Scott drinks beer and burns about $20 on lottery tickets at The Winner's Circle bar in Middlebury. A customer scratches off lottery tickets at a bar in Middlebury, Ind. (By Linda Davidson / The Washington Post /File photo)

Hoosier Lottery announced record surplus revenue Tuesday, but it was also short of its revenue goal by $1.6 million.

It was the first year Indiana partnered with a private company, GTECH, on sales, marketing and distribution. It’s an approach neighboring Illinois took when it signed a 10-year agreement with Northstar Lottery Group in 2010, which was canceled last week due to consistently underperforming revenue figures.

A spokeswoman for Indiana Gov. Mike Pense (R), Christy Denault, declined in an e-mail to say whether the governor had plans to discontinue the state’s relationship with GTECH for missing revenue goals.

Under the terms of the state’s agreement, GTECH was responsible for paying the state to cover the difference between provider net income and bid net income, which totaled $1.6 million.

Still, the company was optimistic. Colin Hadden, chief operating officer and general manager of GTECH Indiana, said in a statement the company was “pleased with our first year of operation in Indiana.” Hoosier Lottery set a record for the largest transfer of surplus funds to the state with $250 million that goes toward pensions and retirement funds for public employees such as teachers, firefighters and police officers.

A spokeswoman for Hoosier Lottery, Courtney Arango, said in an e-mail that the bid net income will be even higher in 2015 — $320 million — which GTECH must either reach or pay the difference for. The contract between the company and Indiana is for 15 years.

Hunter Schwarz covers the intersection of politics and pop culture for the Washington Post

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