Seeking More Transparency: Montana Lawmakers Question Lottery’s Intralot Deal

Lawmakers in Montana, US, are looking to learn why state Lottery Director Bob Brown has refused to give auditors access to some emails connected to a major contract with gambling technology company Intralot. The issue emerged during a Legislative Audit Committee hearing earlier this month, on September 18, while lawmakers were reviewing concerns regarding the way the Montana Lottery handled negotiations with the Greek-based company whose US subsidiary entered into an agreement with Major League Baseball in July 2020. “Sweetheart Deal” Under Question Intralot, which introduced new Fast Play games to the Illinois State Lottery six years ago and also operates Montana Millionaire and Montana Sports Bet, ultimately secured a new seven-year contract with the Lottery last year. However, the agreement followed a dispute over the manner in which the contract should be awarded. The Montana Lottery Commission voted unanimously in September 2024 to put the contract out for competitive bidding. Brown later paused that process to consider an unsolicited proposal from Intralot to continue its relationship with the state. That decision raised questions among members of the citizen commission, who questioned whether the agency was moving toward what they described as a possible “sweetheart deal” for the existing supplier. Under its previous agreement, Intralot received 8% of gambling sales from the products it operated. Its unsolicited proposal did not mention any rate cut. Lawmakers subsequently threatened to withhold funding unless the Lottery held a competitive bidding process. Intralot eventually won the new contract with a rate of 5.05%. Accordingly, state auditors estimate that the competitive process will save Montana about $17.6 million over the seven-year agreement. Transparency Concerns Brown defended his decision during the September 18 hearing, saying he explored Intralot’s proposal because he believed doing so was in Montana’s best interests. However, the audit has raised additional questions about what happened during the negotiations and whether the process was sufficiently transparent. Auditors requested access to Brown’s emails as part of their review, including communications that could help determine whether any conflicts of interest existed. Brown withheld some messages, saying attorneys had designated them as confidential or privileged. The Department of Administration and Gov. Greg Gianforte’s office were also identified in the audit as having restricted auditors’ access to certain information. Sen. Tom McGillvray, R-Billings, accused the Lottery of “obstructing” auditors during the hearing, according to the Independent Record. Brown said he had provided most of his emails but maintained that he could not release communications that had been identified as confidential or privileged by legal counsel. Auditors also could not determine exactly how Intralot’s unsolicited proposal originated. Lottery officials told investigators they could not recall the circumstances surrounding how the proposal reached the agency outside the competitive procurement process. Intralot has not appeared at public hearings concerning the controversy, either through company representatives or its registered Montana lobbyists. The audit has not accused Brown or Intralot of corruption. Instead, the questions center on the procurement process, access to records, and how the state handled an unsolicited offer before ultimately putting the contract out to competitive bidding.