The private management company operating the Hoosier Lottery says it expects to sell enough tickets to avoid a penalty for a third straight year but not enough to receive an incentive bonus.
Officials with IGT Indiana, formerly known as GTECH Indiana, told the Hoosier Lottery Commission on Tuesday it is on pace to sell a record $1.19 billion in lottery tickets during the 2016 budget year that ends June 30.
The company estimates that will amount to $280.7 million in net income, which is more than the $270 million it needed to avoid penalties. IGT Indiana missed both its 2014 and 2015 minimum income targets, so last year the commission restructured the contract and lowered the penalty-triggering minimum, which had been $365 million for this year.
Colin Hadden, IGT Indiana’s general manager, said he was happy with the expected 17.2 percent net income growth compared to 2015.
Hadden said the $1.6 billion Powerball prize won in January was responsible for some of the increase. But he said marketing helped increase scratch-off ticket sales and said the popularity of new draw games also helped.
“We are very pleased with the performance in ’16,” Hadden said. “We’re going into ’17 with some good momentum.”
The five-member state commission that oversees the Hoosier Lottery unanimously approved IGT Indiana’s 2017 business plan Tuesday that calls for 3.9 percent net income growth over 2016. IGT Indiana’s plans call for expanding sales of existing products and a new game that will give bettors a chance to win $1,000 a day for life by matching six numbers.
IGT Indiana must earn at least $290 million for the state during the 12-month period starting July 1 to avoid a penalty equal to any shortfall.
Income above $295 million would be divided between the state and IGT Indiana, which also is paid approximately $13 million a year as a management fee.
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