Subscribe Register Login

Tuesday, September 02, 2014, 8:10 p.m.
Top Picks - Arkansas Daily Deal

Arkansas Lottery Commission reaffirms gaming contract

By Staff and wire reports

This article was originally published April 11, 2012 at 9:56 a.m. Updated April 11, 2012 at 3:29 p.m.

UPDATE:

The Arkansas Lottery Commission has voted to reaffirm its contract with a company that provides scratchoff tickets for the agency amid questions about the legality of the agreement.

Two commissioners - George J. Hammons and Bruce Engstrom - voted against the measure, which came up Wednesday after the body heard an internal audit report that recommended the lottery seek outside legal advice on the issue.

The contract has come under question because former agency director Ernie Passailaigue increased the percentage of net sales paid to Scientific Games without consideration by the commission or the Lottery Legislative Oversight Committee. An internal auditor said the change has so far cost the state $7.29 million more than it would have paid out otherwise.

Engstrom said reaffirming might have closed the door on legal action. The lottery commission had not approved the changed contract beforehand, but "now we have," he said.

Bishop Woosley, the lottery's former chief counsel who became its director earlier this year, said it's hard to say whether the lottery lost money because of the changes. He noted the agreement with the changes helped the agency exceed its projections.

"I don't know that I would agree with any of the numbers," Woosley said. "... The fact that we were originally projected to do scholarships of $50 million and we did $94 million last year, I think has a lot to do with the contract terms."

Scientific Games last month offered to credit the lottery $2 million over the life of the contract if the terms were maintained. It noted that it was not admitting any guilt and described the credit as a "gesture of goodwill" to put the "issue behind us for good."

EARLIER:

The Arkansas Lottery Commission is to discuss an internal audit that includes a contract that generated an extra $21 million for a company that provides the lottery’s scratch tickets.

The panel is to meet Wednesday afternoon, in part to discuss how Scientific Games got the additional money under former lottery director Ernie Passailaigue.

The contract runs through 2016, and Scientific Games has offered the commission $2.2 million as a goodwill gesture. But the company says the offer won’t stay on the table forever.

Internal auditor Mike Hyde is to give his assessment of the contract to the commission. New lottery director Bishop Woosley disagreed at a meeting last month over the financial implications of the contract.

Comment on: Arkansas Lottery Commission reaffirms gaming contract

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

Subscribe Register Login

You must login to make comments.

Displaying 1 - 1 of 1 total comment

mkm157 says... April 11, 2012 at 9:21 p.m.

Why even have an internal audit function if you ignore any findings he discovers? This group is a disgrace! Sweep it under the rug, ignore it and hopefully it will just go away. I feel sorry for Mr. Hyde. He does his JOB and the Commission just says we don't care. Why does he even bother?

( | suggest removal )

  • page
  • 1
Click here to make a comment

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

TOP JOBS

  • Truck drivers

    truck driversneeded nowin little rock!Learn to drive for USA...
    LITTLE ROCK, AR

  • Cnas

    Brighton ridge attention Brighton Ridge of Eureka Springs is...
    EUREKA SPRINGS, AR

  • Life skill tech

    Direct care, various shifts available. Experience in long te...
    NORTH LITTLE ROCK, AR

  • Helpers

    Established HVAC Construction Company is interviewing for Su...
    ROGERS, AR

  • Manager

    — Quality AssuranceGeorgia-Pacific LLC has an open position...
    CROSSETT, AR

Search 912 jobs >

Top Picks - Arkansas Daily Deal
Arkansas Online