The Oregon Lottery is projecting that it will pay $26.8 million to its sports betting contractor over three years as sports betting handle increases in the state.
The projection estimates that sports betting will attract $332.8 million in its first year and increase to $722.3 million by the third year. SBTech’s payments will rise from $5.2 million in the first year, $9.1 million in the second and $12.5 million in the third.
Matt Shelby, the lottery’s spokesman, said that the estimated payments to SBTech represent a percentage of Oregon’s gaming revenue.
Lottery officials released the internal projections in the face of some public concerns about SBTech, which is providing Oregon with sports betting technology and a mobile app. The company is based in the Isle of Man and Malta and has not operated in many U.S. jurisdictions.
Also, Scientific Games, which lost out on the bid to run the state’s sports betting operations, has accused SBTech of operating in illegal jurisdictions. SBTech officials have denied the claim.
State officials have said they made proper background investigations into SBTech before awarding the contract.
