HomePublicationsNewsletter ArchiveNewslettersVolume 20Issue 8Michigan Lottery Renews Contract with GTECH through January 2017

On Friday, February 28, 2014, the Michigan Lottery announced that it had renewed its contract with GTECH to provide products and services related to the operation of the Lottery’s draw games, such as Powerball, Mega Millions, Classic Lotto 47, and Club Keno. The current contract with GTECH was set to expire in January of this year, but the extension provides for the continuation of the company’s relationship with the Lottery through January 19, 2017. GTECH has provided services to the Lottery since 1988.

In a press release on the matter, Director of Public Relations Jeff Holyfield stated that, “[t]he Michigan Lottery games supported by GTECH’s products and services are very popular with our players and provide a significant share of the revenue that we contribute each year to the state School Aid Fund. The contract extension recognizes that GTECH and its team have proven they share our commitment to provide excellent services to our players and the 11,000 retailers that sell Michigan Lottery products across the state.”

According to its Comprehensive Annual Financial Report for 2013, the Lottery disbursed $734.3 Million to the State School Aid Fund in Fiscal Year 2013. It is required by law to deposit all of its net income into the School Aid Fund or the state’s General Fund. These deposits do not include unrealized gains or losses of the agency’s investments and bond amortization.

Current Legislation

In addition, on March 4, 2014, House Bill 4855 (“HB 4855”) was referred to the Senate Committee on Families, Seniors and Human Services after it passed the House by a vote of 107-1. HB 4855, if passed and signed into law, would require the Lottery to check with the state Department of Human Services prior to issuing any winnings in excess of $1,000.00 or more to ensure that the winner does not owe a debt to the department. If a debt exists, then the winnings must be applied to the debt, as well as to other debts such as child support arrearages, outstanding court fees, and unemployment compensation debts, prior to being paid to the winner. The winner would receive the remaining balances after these debts have been satisfied.


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