The $791 million Hoosier Lottery wants to be among the fastest-growing in the country, and it’s looking to the gambling industry to help it reach that goal.
The lottery threw open bidding July 11 for a 10-year contract on marketing, sales and distribution services. The response from the private sector is likely to be enthusiastic, as Indiana will be one of the first states to enter a major outsourcing deal since the U.S. Department of Justice said states could engage in non-sports gambling online.
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The lottery typically returns more than $200 million a year to state coffers, but officials think there’s room for improvement. The commission’s stated mission is to be one of the top five lotteries in the country, as measured by year-over-year income growth.
While Indiana touts a $2 billion surplus, a major source of revenue—casino taxes—is on the wane. Revenue from casinos, which provided $660 million in 2011, will drop as neighboring states introduce competition, budget forecasters predict.
“You want to bolster revenues as much as you can to try and account for that,” said political analyst Ed Feigenbaum, who publishes the Indiana Gaming Insight newsletter. “This may be an opportunity to do it.”
Lottery income dropped 15 percent, from $210 million in the 2008 fiscal year to $178 million in 2009.
The trend is on the upswing again, with income forecast at $212 million for the year ended June 30 and budgeted at $226 million for 2013.
The earnings go into the Build Indiana Fund to offset vehicle excise taxes charged by local governments. The fund has also used lottery money to make contributions to pension and disability funds for police, firefighters and teachers.
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While Indiana touts a $2 billion surplus, a major source of revenue—casino taxes—is on the wane. Revenue from casinos, which provided $660 million in 2011, will drop as neighboring states introduce competition, budget forecasters predict.
“You want to bolster revenues as much as you can to try and account for that,” said political analyst Ed Feigenbaum, who publishes the Indiana Gaming Insight newsletter. “This may be an opportunity to do it.”
Lottery income dropped 15 percent, from $210 million in the 2008 fiscal year to $178 million in 2009.
The trend is on the upswing again, with income forecast at $212 million for the year ended June 30 and budgeted at $226 million for 2013.
The earnings go into the Build Indiana Fund to offset vehicle excise taxes charged by local governments. The fund has also used lottery money to make contributions to pension and disability funds for police, firefighters and teachers.
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