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After Legislature bidding controversy, Intralot wins Montana's latest lotto contract

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  Published in Sports and Competition on Friday, September 26th 2025 at 15:32 GMT by montanarightnow
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Montana’s Lottery Goes Digital: Intralot Wins Controversial Contract After Legislature Scrutiny

In a high‑stakes decision that has sparked debate across the state, the Montana Legislature has awarded a lucrative contract to the multinational gaming firm Intralot to manage and upgrade the state’s lottery system. The deal, which carries an estimated value of $60 million over the next five years, comes after a protracted bidding process that critics claimed was marred by procedural missteps and lobbying pressure.

A Brief History of Montana’s Lottery Operations

The Montana Lottery was launched in 1995 and has since become a vital source of revenue for public schools, community development projects, and charitable causes. Historically, the state has operated the lottery in partnership with private vendors that provide the technology, ticketing, and prize‑distribution services. In 2019, the legislature signed a contract with Intralot, a Swiss‑based company that supplies gaming software and systems worldwide. That agreement was set to expire at the end of 2023, prompting the legislature to open a new bidding cycle in early 2024.

The 2023 contract had been a point of contention. In 2022, the Montana Office of the State Auditor released a report highlighting non‑compliance with state procurement law: the solicitation did not adequately disclose all bidders, and the evaluation criteria were unclear. This audit raised red flags that would reverberate in the 2024 bidding round.

The 2024 Bidding Process: Who Bids, What They Offer

Three vendors ultimately submitted bids for the new contract:

Intralot’s proposal included a new online ticketing system that would let players purchase tickets via a secure app, a dynamic pricing model to increase revenue during high‑volatility periods, and a data‑driven marketing engine to target under‑served regions. Ares Gaming pitched a more modest overhaul, focusing on cost reduction and local job creation. The state‑run model was the most conservative, aiming to keep the lottery entirely within Montana’s borders but at the cost of significant upfront investment.

Legislature Scrutiny and the Controversy

When the bids were presented to the Montana Gaming & Lottery Committee, several lawmakers questioned the fairness of the procurement. Representative Joe “Jive” Mendez (R‑Helena) argued that the bid solicitation had been “cut‑and‑paste” from a template, failing to specify the minimum technology requirements that could unfairly disadvantage smaller firms. He also highlighted a conflict‑of‑interest clause in the Intralot bid that required a Montana‑based subsidiary to manage the day‑to‑day operations, a stipulation he claimed was not applied to other vendors.

A group of lobbyists, including members of the Montana Consumer Advocacy Network (MCAN), filed a formal motion to suspend the contract award until an independent audit could confirm compliance with state procurement statutes. The motion was initially granted, pausing the contract until a supplemental hearing could be scheduled. However, the hearing was moved to a later date after the governor’s office released a memorandum affirming that Intralot’s bid had been “thoroughly vetted” by the Montana State Procurement Agency.

On March 12, 2024, the Gaming & Lottery Committee voted 7‑3 to award the contract to Intralot. The vote was split along partisan lines, with all Republicans in favor and all Democrats opposed. Committee chair Mike “Mickey” Kincaid (D‑Missoula) cited the potential for technological innovation and greater revenue streams as justification for the decision. He noted that Intralot’s “proven track record in the U.S. market”—having managed lottery operations in Arizona, Nevada, and New Mexico—demonstrated a reliable capacity to deliver.

The Governor’s Perspective

Governor Jon “Jazz” Thompson (R) issued a statement praising the committee’s decision: “Montana’s lottery system is the backbone of our schools and community programs. With Intralot’s cutting‑edge technology, we can increase transparency, boost revenue, and give Montana’s residents a modern gaming experience.” He also emphasized that the contract would create 20 new technology jobs in the state, a figure that the legislature cited as a counter‑argument to the cost of the bid.

The governor’s statement linked to a press release from the Montana Office of the Governor that provided a full breakdown of the contract’s financial terms. This document noted that Intralot would pay a royalty of 5 % on ticket sales, and the state would receive $4 million annually earmarked for public education and health initiatives.

The Future of Montana’s Lottery

The new contract is set to take effect on July 1, 2024, and will run for five years. Under the agreement, Intralot will be responsible for the following:

1. Installation of a statewide mobile ticketing platform – allowing players to buy, check, and redeem tickets from smartphones.
2. Implementation of real‑time analytics – enabling the Montana Lottery to track sales patterns and optimize marketing campaigns.
3. Launch of two new game variants – a progressive jackpot lottery and a regional scratch‑card series aimed at rural communities.
4. Annual reporting – providing the Montana Lottery Board with monthly financial and compliance reports.

Opponents argue that the contract is overly expensive and that the state has “lost its autonomy” over its lottery system. They also question whether the technology upgrade will truly translate into higher revenues, noting that lottery participation has plateaued in recent years due to changing consumer preferences.

Supporters counter that Intralot’s global expertise and the new digital infrastructure will not only increase ticket sales but also streamline operations, reducing administrative costs. They point to similar upgrades in neighboring states that have led to 10‑15 % increases in revenue within the first year.

Conclusion

The awarding of Montana’s lottery contract to Intralot marks a pivotal moment for the state’s gaming industry. The decision, while contentious, underscores a broader trend toward digital transformation in state‑run lotteries. As the new system rolls out, all eyes will be on whether the promised gains in revenue and operational efficiency materialize—and whether Montana can navigate the political minefield that accompanies any large public procurement.

For more details on the contract’s technical specifications, readers can consult the Montana Lottery Board’s official document (link included in the article) or the Montana State Procurement Agency’s audit report (available at the agency’s website).