Connecticut Lottery and IGT Face Fines And Reforms After System Failures Affect Ticket Payouts

The Connecticut Lottery Corporation and International Gaming Technology (IGT), its primary vendor, faced significant operational issues during the spring and summer of 2023. This led to system breakdowns that affected both instant tickets and draw games, and the state’s Department of Consumer Protection (DCP) wants to make sure nothing like that happens again.

The failures resulted in erroneous outcomes for both losing and winning lottery tickets, triggering a settlement agreement between the lottery and the DCP, according to media outlet CT Insider. The disruptions, which spanned from May to August, led to a fine and an agreement to improve procedures within the lottery corporation.

One of the most notable failures occurred in the spring of 2023 when a glitch in the lottery’s central gaming system, operated by Nevada-based IGT, caused the system to incorrectly process draw game tickets. This malfunction led to payouts for tickets that were actually losing bets while simultaneously rejecting winning tickets.

Despite the seriousness of the issue, the Connecticut Lottery, whose new online lottery platform has also faced issues, delayed notifying the DCP, in violation of state regulations. The resulting settlement imposed a $16,000 fine on the lottery and mandated better training for its 150 licensed employees.

The settlement, signed by DCP Commissioner Bryan Cafferelli and Frank Suarez, the newly appointed president and CEO of the Connecticut Lottery Corporation, specifically called for the lottery to enhance communication and emergency protocols in the event of future system breakdowns.

Faulty IGT system leads to issues

The software glitch that caused the issues was tied to IGT. The company has reportedly faced persistent delays and technical problems since winning the contract to manage the state’s online gaming operations in 2021.

The central gaming system failure that affected draw game tickets was not the only issue, as the lottery also experienced another system breakdown from July 29 to August 1 of last year. This second malfunction occurred when ticket agents attempted to manually insert winning instant tickets, which were then rejected by the system due to a software error.

In total, the settlement revealed that 565 lottery tickets and one scratch-off ticket were affected, depriving winners of $2,976 in payouts. The breakdowns in communication during the incidents compounded the issue.

While the initial failure occurred on May 31, 2023, IGT did not immediately inform the Connecticut Lottery, and the Lottery itself waited 13 days before notifying the DCP. During this period, agents at gas stations, supermarkets, and other retail locations never received an explanation about how to proceed as the lottery worked to resolve the malfunction.

Swept under the rug

The settlement agreement outlined the chronology of events and the failures in communication. Suarez had recently taken over from Greg Smith, who was president at the time of the system failures.

The agreement noted that Smith’s team actively worked to identify and resolve the issue between June 9 and June 15, 2023. However, its failure to inform the DCP until June 13 deprived the agency of the opportunity to take immediate emergency action.

Although the settlement did not directly admit liability or legal violations, the Connecticut Lottery agreed to a “settlement fee” of $13,000, which amounted to $1,000 per day for the delay in reporting the issue from May to June. This fee, along with the $2,976 in unpaid winnings, will be allocated to problem gambling programs in the state.

The document described this financial settlement as a “payment” rather than a fine or penalty.