Ohio Lottery officials told the State Controlling Board on June 2 that a planned vendor change will be phased over the next biennium to limit retailer and player disruption, and the board approved a contract renewal for the commission.
Representative Sweeney pressed the agency for details about a year‑to‑year drop in the contract renewal figures and about broader revenue forecasts during a vendor change. A lottery representative said the agency factored in a realistic conversion process for retailers and players and submitted conservative revenue forecasts to the budget process: “We submitted $1,462,000,000 for the first fiscal year in 'twenty‑6 and 1 point 04/06 7 in fiscal year 'twenty‑7,” the representative said on the record, adding that the agency aims to avoid shortchanging school funding in its submissions.
The agency also briefed members on concerns about competition from new gaming formats. When asked about iGaming and whether an expanded iGaming market could cannibalize traditional lottery revenues, agency staff said there has been some cannibalization in other product categories (they pointed to sports betting and the Kino product) and cited the experience of the Michigan Lottery as an example where iGaming and sports betting have coincided with declines in some traditional sales.
Why it matters: the lottery is a constitutionally mandated revenue source for education; changes to vendor platforms, product mix, or competing gaming markets can affect state‑school funding. Board members pressed the agency for procurement details and asked for follow‑up information about the new vendor contract and projected long‑term profits.
Discussion vs. action: the board approved the renewal item and asked agency staff to provide additional procurement and contract details to legislators who requested them.
What’s next: the lottery plans a phased conversion of retail kiosks and digital platforms over the next biennium and will provide contract and forecast details to legislators on request.