Commission approves lottery reprocurement process, scratch‑ticket amendments and an internal audit procurement

Commissioners approved several procurement and contract items related to the agency’s lottery and internal controls.

Staff presented a plan to reprocure the statewide lottery‑operator services contract with an initial operational term of 10 years (FY2028 operational start), preceded by a one‑year transition/execution period starting in FY2027. Staff said vendors indicated a 10‑year term is typically necessary to amortize capital investments (machines, software, store rollouts); the contract is expected to include deliverables, sanctions and liquidated damages and annual reporting of any assessed sanctions. Commissioners asked whether transition-year compensation would be paid (staff said the transition year is not paid up front and typically is accommodated in contract terms) and discussed annual reporting and checkpoints to give future commissions oversight during a long contract term. The commission voted to proceed with the procurement.

On scratch tickets, staff presented amendments to existing scratch‑ticket contracts that would allow vendors to introduce new printing enhancements under contract provisions; these are $0‑cost amendments and were approved. Commissioners clarified estimated annual contract- and revenue‑figures for scratch tickets and asked follow-up questions about marketing and revenue allocation.

Separately, staff requested approval to issue a solicitation for internal audit services to cover all agency programs (lottery, bingo, licensing and regulation). Commissioners approved commencing procurement and discussed typical renewal structures and documentation requirements.

All motions on these procurement and amendment items were approved on the record; commissioners asked staff to provide more detailed memos and periodic reporting on contract performance and sanctions during long‑term contracts.