Montana Lottery Faces Scrutiny Over Intralot Contract Talks
The Montana Lottery is facing renewed scrutiny after state auditors said they were blocked from reviewing emails tied to negotiations with the agency’s biggest vendor.
Lottery Director Bob Brown declined to give auditors access to certain emails related to the contract discussions, saying they were protected by attorney-client privilege. The Department of Administration and Gov. Greg Gianforte’s office were also cited in the audit for restricting access to information connected to the negotiations.
The controversy centers on Intralot, a Greece-based company that had the lottery’s previous contract and eventually won a new seven-year deal. The company operates major lottery products, including Montana Millionaire and Montana Sports Bet.
What sparked the controversy?
In September 2024, Montana’s citizen oversight commission voted unanimously to put the lottery contract out for competitive bidding. Instead, Brown chose to explore an unsolicited offer directly with Intralot.
That decision triggered criticism from lawmakers, who threatened to withhold funding unless the competitive bidding process moved forward.
Brown later accepted responsibility for the decision, telling lawmakers that exploring Intralot’s offer was ultimately his choice.
Competitive bidding saved millions
The eventual bidding process produced a major financial difference for the state:
- Previous Intralot rate: 8% of gambling sales
- Direct offer: No change to the 8% rate
- New competitive rate: 5.05%
- Estimated Montana savings: About $17.6 million over seven years
Auditors also said lottery officials could not recall key details about how Intralot's unsolicited proposal originally reached the agency.
During a recent legislative hearing, Sen. Tom McGillvray questioned Brown about the decision to restrict access to his emails and pressed for greater transparency.
Brown said he had allowed access to his emails except messages marked confidential or privileged by legal counsel.
The audit also raised concerns about attorneys being present during interviews between auditors and state employees. Audit analyst David Singer said independent interviews are generally more reliable when employees can speak freely without feeling intimidated.
The latest findings have put the spotlight not only on the Montana Lottery but also on the state's broader procurement process, which has faced separate controversies involving government contracts.
Intralot did not appear at the latest legislative hearing, either through company employees or registered lobbyists.
