The State : Lotto Firm Draws Fine

The state has fined the firm that operates California’s lotto games more than $730,000, largely for outages of the central computers that record bets. But the firm blamed “excessive” penalties mostly on the lottery’s use of an overly complex system design. The problems have inconvenienced players who could not place their bets at times, or who had to wait several minutes, and have reduced lottery sales by an undetermined amount, state documents said. The lotto contractor, GTECH Corp., said its California operation lost money initially due to start-up costs and expects only slim profits this year, due partly to problems linked to design of the central computers, company spokesman John Jervis said. Lottery Director Chon Gutierrez said GTECH and the lottery have begun using temporary remedies that reduce duplication of betting records during heavy sales periods while permanent solutions are sought.