The Iowa Lottery will do something it has never done before in January. Lottery CEO Matt Strawn says they will use one company to print tickets and that company will take on part of the risk.
“If they exceed their performance goals, they are incented with a small bonus. If they miss their projected annual performance goals, there is a small penalty for missing those performance goals on sales,” Strawn says. Strawn says Scientific Games is the company chosen through the competitive bidding process.
“Previously. All of that risk in deciding which tickets to bring to market really was borne by the Iowa lottery and the state of Iowa,” He says. “So, this allows the Iowa lottery to better leverage the experience and expertise of its scratch ticket printing partner.”
Strawn says the Iowa Lottery will still have input on the design and scratch games that are sold. “The state of Iowa still has the ultimate sign off on what will be an annual product plan to ensure that it still meets, not just the revenue goals for the state of Iowa, but make sure that we’re managing the portfolio in a responsible manner,” he says.
Scratch tickets were the first ever product sold by the Iowa Lottery and they still lead at 23% percent of Lottery products sold.