Montana Lottery Director Withholds Emails in Intralot Contract Review

The Montana Lottery's handling of a major technology contract is facing renewed scrutiny following revelations that Director Bob Brown has restricted auditors' access to email communications tied to the agency's relationship with Intralot, a Greek-based gambling technology supplier.

The controversy centers on how the Lottery secured a seven-year agreement with Intralot, which operates games including Montana Millionaire and Montana Sports Bet. Under the previous arrangement, Intralot received 8% of gambling sales from its products. When the company submitted an unsolicited proposal to extend that contract at the same rate, lawmakers raised concerns about the procurement's transparency and forced the Lottery to conduct competitive bidding.

The competitive process ultimately resulted in Intralot winning the contract at a significantly reduced rate of 5.05%, generating estimated savings of approximately 17.6 million dollars over the contract term. However, the path to that outcome has raised questions about the Lottery's initial negotiating posture and decision-making processes.

At the heart of the current controversy is Brown's decision in September 2024 to pause competitive bidding after the Lottery Commission unanimously voted to open the contract to competition. Brown explored Intralot's unsolicited proposal during this pause, prompting commissioners to question whether a preferential arrangement was being negotiated for the incumbent vendor. Brown has stated his actions were in Montana's best interest, but a Legislative Audit Division review is now examining whether the procurement process met transparency and accountability standards.

During a Legislative Audit Committee hearing on September 18, auditors seeking to verify whether conflicts of interest existed requested access to Brown's email communications. Brown declined to provide certain messages, citing attorney-client privilege and confidentiality designations. The Department of Administration and Governor Greg Gianforte's office also restricted auditor access to related information. Senator Tom McGillvray characterized the withholding of communications as obstruction of the audit process.

Auditors have been unable to establish a clear record of how Intralot's unsolicited proposal was communicated to the Lottery outside standard procurement channels. Lottery officials told investigators they could not recall the details of how the offer was received. Notably, Intralot has not participated in public hearings addressing the matter, neither through company representatives nor registered Montana lobbyists.

Neither Brown nor Intralot faces accusations of corruption. However, the incident underscores ongoing challenges in gaming procurement governance. Across the United States, lottery and gaming agencies manage billions in annual contracts with technology vendors, making transparent procurement practices essential to public trust. The Montana situation illustrates how even when competitive processes ultimately produce favorable financial outcomes, the pathway to those results matters significantly for regulatory credibility and stakeholder confidence in state gaming operations.