Montana Lottery Probe: Lawmakers Question Blocked Emails and Intralot Contract

The political landscape in Montana is currently being shaken by a debate over transparency and the awarding of public gambling contracts. At the center of the investigation is Bob Brown, the director of the state lottery, who is accused of blocking access to critical communication data. During a Legislative Audit Committee hearing on September 18, it became clear that Brown refused to allow auditors to view certain emails. These messages are connected to negotiations for a multi-million dollar contract with the Greek technology company Intralot, which has been operating sports betting and lottery products in the US state for some time.

The matter is particularly explosive because the contract renewal process was marked by irregularities. Originally, the Montana Lottery Commission had unanimously decided in September 2024 to put the contract out for public bid. However, Director Brown unilaterally stopped this process to consider an unsolicited proposal from Intralot. This triggered alarms among members of the citizen commission, who feared that a so-called sweetheart deal was being brokered in favor of the incumbent provider. Only after parliamentarians threatened to completely cut off funding for the lottery agency was the competition actually held.

Numbers and facts

The economic aspect of this dispute is massive. Under the old agreement, Intralot received a significant 8% of gambling sales from the products they operated. The unsolicited proposal that Brown wanted to use to bypass the tender did not provide for any reduction in this rate. However, due to the forced competition, Intralot had to drastically improve its offer. In the end, the company won the new seven-year contract with a rate of only 5.05%. State auditors estimate that this competition will save Montana taxpayers approximately $17.6 million over the life of the agreement. Nevertheless, a bitter aftertaste remains, as Intralot was 8 cents on the dollar cheaper than the next closest competitor during the bidding process.

Senator Tom McGillvray of Billings found clear words for the lottery agency's behavior during the hearing. He accused those responsible of obstructing the auditors. Brown, on the other hand, defended his actions, stating that he only had the best interests of the state in mind. He justified the refusal to release emails by citing legal requirements from his lawyers, who had classified certain documents as confidential or privileged. Governor Greg Gianforte's office was also mentioned in the audit report, as access to certain information for auditors was also restricted there.

Background

Intralot is no stranger to the US market. The company operates products such as Montana Millionaire and Montana Sports Bet in Montana. However, there have already been problems internationally and in other US states. For example, the company was fined $6.5 million in Washington, D.C. In Ohio, betting kiosks were shut down after technical errors, and a deal in Maryland recently failed completely. This history increased the distrust of lawmakers in Montana when the agency leadership tried to extend the contract without competition. A legal loophole from 2023, which theoretically allowed the lottery to conclude contracts with a person without a tender, is seen as particularly critical, whereby corporations can legally be considered persons.

"We just wanted the bidding process to be transparent — and if they (Intralot) win, they win." - Matt Regier, Montana Senate President

The investigation has not yet proven direct corruption, but it reveals how vulnerable state monopolies can be to non-transparent decision-making processes. The fact that lottery officials could not remember how Intralot's unsolicited offer even reached the agency reflects poorly on the record-keeping.

Why it matters for German players

For German players, this case is an important reminder. In Germany, the market is strictly regulated by the State Treaty on Gambling 2021 (GlüStV 2021) to prevent such lack of transparency. While individual federal states in the USA often decide on licenses, Germany has a central supervisory authority in the form of the Gemeinsame Glücksspielbehörde der Länder (GGL). German players should make sure to play exclusively with providers on the GGL whitelist. There, rules such as the monthly deposit limit of 1,000 euros, the maximum stake of 1 euro per spin for slots, and the connection to the LUGAS monitoring system are mandatory. Such clear legal frameworks minimize the risk of cronyism or non-transparent contract conclusions as currently investigated in Montana.

What it means for GGL-licensed casinos

Legal providers in Germany must undergo a complex certification process. In contrast to the Intralot case in Montana, where a legal loophole almost eliminated competition, German regulation ensures equal treatment for all applicants. This strengthens user trust. If a provider violates transparency rules or tries to bypass the regulatory process, they face the withdrawal of their license in Germany. For licensed casinos, the current news from the USA means that transparency is not just a moral duty but a real competitive advantage. Players are increasingly migrating to where they can be sure that no backroom deals influence operations.