Florida Lottery, Legislature Face Deadline

Last year Florida House Speaker Richard Corcoran (l.) sued the Florida Lottery over its $700 million contract with IGT. Circuit Judge Karen Gievers invalidated the deal. The Lottery appealed, but now the appeals court said the Lottery and the House of Representatives have until August 31 to report back on efforts to settle the lawsuit.

The Florida House of Representatives and Florida Lottery have until August 31 to turn in an update to the 1st District Court of Appeal regarding efforts to settle a lawsuit over a $700 million contract. The lawsuit was filed by House Speaker Richard Corcoran, who claimed the Lottery’s 15-year deal with IGT for new equipment for draw and scratch-off tickets, in-store signage, self-service ticket checkers and upgraded network security was illegal.

Tallahassee-based Circuit Judge Karen Gievers invalidated the deal in March. Gievers stated she agreed with House General Counsel Adam Tanenbaum’s opinion that the agreement broke state law by going “beyond the Lottery’s existing budget limitations.” Gievers also said the Lottery should have sought permission from the legislature to enter into a deal that committed the state to up to long-term funding. She wrote since then-Lottery Secretary Tom Delacenserie “lacked the legal authority to enter into the IGT contract, it must, therefore, be found to be void and unenforceable.” The Lottery appealed the ruling.

Meanwhile, last month the court agreed to suspend the case to allow both sides to work out their differences. “If the case has not been dismissed” by August 3, the parties must indicate if they see a “need for any further proceedings,” a docket order said.

House spokesman Fred Piccolo said “negotiations continue” and Barry Richard, outside counsel for the Lottery, said the case still was on hold.

Delacenserie now heads the Kentucky Lottery, and former Department of Economic Opportunity Chief of Staff Jim Poppell runs the Florida Lottery.