Montana Lottery’s Intralot Deal Faces Scrutiny Over Withheld Emails

Montana lawmakers are questioning why the state’s lottery director, Bob Brown, is refusing to give auditors access to some emails linked to a lucrative contract with gambling technology supplier Intralot, The Independent Record reports.

Intralot, the Greek-based company that operates games including Montana Millionaire and Montana Sports Bet, ultimately secured a new seven-year contract with the Lottery last year.

But the deal came only after lawmakers forced the agency to abandon direct negotiations with Intralot and put the contract out for competitive bidding.

Under its previous contract, Intralot received 8% of gambling sales from the products it operated. When the company made an unsolicited proposal to extend its relationship with the Lottery, it offered no reduction in that rate.

After lawmakers threatened to withhold funding unless there was a competitive bidding process for the contract, Intralot ultimately won the procurement at a rate of 5.05%.

State auditors estimate the competitive process will save Montana approximately $17.6 million over the seven-year contract.

‘Sweetheart Deal’ Concerns

The controversy began after the Montana Lottery Commission unanimously voted in September 2024 to put the contract out to bid, but Brown paused that process to explore Intralot’s unsolicited proposal.

That prompted members of the citizen commission to question whether a “sweetheart deal” was being arranged for the incumbent supplier.

Brown has defended his decision, telling lawmakers Friday (September 18) that he chose to explore the offer because he believed doing so was in the best interests of Montana.

However, a Legislative Audit Division review has now raised further questions about transparency surrounding the negotiations.

Auditors examining the procurement sought access to Brown’s emails to determine whether conflicts of interest existed during the contracting process. Brown withheld some communications that he said had been designated confidential or privileged by attorneys.

The Department of Administration and Gov. Greg Gianforte’s office were also cited in the audit as having restricted access to information.

Sen. Tom McGillvray (R-Billings) accused the Lottery during Friday’s Legislative Audit Committee hearing of “obstructing” auditors’ attempts to determine whether the process had been transparent and accountable, according to the Record.

Brown said he had made most of his emails available but would not disclose communications designated confidential or privileged by legal counsel.

Origin of Offer Unclear

Auditors were also unable to establish how Intralot’s unsolicited proposal came about. Lottery officials told investigators they could not recall details about how the offer was received outside the competitive procurement process.

Intralot has not appeared at public hearings on the controversy, either through company representatives or its registered Montana lobbyists.

Neither Brown nor Intralot is accused of corruption.