Texas Lottery Commission fines vendor $180,000 for political donations

AUSTIN (Nexstar) — The Texas Lottery Commission is sanctioning International Game Technology (IGT), the vendor that provides lottery machines and technology, $180,000 because the agency claims the company violated its contract by making political contributions. However, IGT filed a lawsuit against TLC saying it did not violate the contract because its contributions were not made directly to any individual state officer or legislator.

The commission notified IGT in a March 19 letter it is withholding $180,000 because the company made 18 "prohibited indirect gifts." The contract between TLC and IGT reads the company and its officers "shall not knowingly make a gift, loan or political contribution, either directly or indirectly, to any Texas State Officer or a member of the Texas State Legislature, during the term of this Contract."

In a lawsuit filed in Travis County, IGT admitted it donated to the Texas Republican Legislative Caucus, Texas House Democratic Caucus, Texas Legislative Black Caucus (TLBC), and the Mexican American Legislative Caucus (MALC) while under contract with TLC, but the company, "was careful to insist that each of these contributions to the legislative caucuses be earmarked and used in a manner that ensured compliance with its contractual obligations to the Lottery Commission." You can read the full lawsuit with attachments below:

IGT argues in its suit that gifts were given to legislative caucuses and not directly to any individual. It also points out that contributions made to the TLBC and the MALC were designated exclusively for "golf outings." The company attached examples of different contributions made to the caucuses. The checks stipulated the gift is not allowed to be used for "campaign contributions, directly or indirectly, to a Caucus member or political candidate."

The company is asking for a judgement to declare its gifts were not in violation of its contract and that it did not knowingly pay any gifts to a state officer or individual legislator.

Nexstar reached out to both the Texas Lottery Commission and IGT for a comment on the lawsuit. TLC said it does not comment on pending litigation. We are waiting to hear back from IGT.