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Inquiry Underway Following Ohio Lottery Director’s Resignation

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Powerball signs that would usually read the number of millions in the jackpot have their numbers turned off in Columbus, Ohio. Andrew Spear/Getty Images/AFP.

Apparently, not everything surrounding Ohio sports betting is as perfect as it seems.

Following the resignation of Director Pat McDonald, Ohio Gov. Mike DeWine launched an investigation into “potential HR irregularities at the Ohio Lottery Commission.”

McDonald had been with the Ohio Lottery for 16 years before his abrupt departure. He resigned in a two-sentence email to the governor’s chief of staff, Stephanie McCloud: “I am writing to inform you that I am resigning as Director of the State of Ohio Lottery Commission effective today, April 12, 2023, due to medical reasons. It’s been an honor to serve the people of Ohio,” he said.

DeWine confirmed that two people from his office left the Cleveland lottery offices with McDonald. The Ohio Lottery’s website lists Michelle Gillcrist, the northeast Ohio regional director of DeWine’s office, as the interim head of the lottery.

An Independent Investigation Will Be Conducted

The search is now on for an independent firm to conduct the investigation. 

Governor DeWine told WOUB: “This was a complaint that we had or complaints that we had in regard to personnel,” he said. “And what we are doing now is we’re going to bring in an outside group. We think that’s the best thing to do and let them take the information and the complaints that have been made, and delve into it. We’ll find out what the facts are.”

In an email to Cleveland.com, Dan Tierney, a spokesperson for the Governor’s office, said “The independent investigation will determine any Lottery staff involvement in any alleged irregularities.”

He also denied reports that McDonald was removed from his office by state troopers. Tierney stated that the bodyguards accompanying McDonald following his departure on Wednesday were two members of DeWine’s staff: Chief of Staff Stephanie McCloud and Chief Counsel Matthew Donahue.

Tierney would not elaborate beyond that, nor would he say whether DeWine asked for McDonald’s resignation.

McDonald’s Departure Comes at a Tough Time

McDonald’s resignation comes at an inconvenient time for the Lottery Commission. The agency is ready to rebid its lucrative ($90 million) central gaming system contract. It’s also trying to resolve a long-running dispute over the state’s adoption of internet-based lottery gambling, or iLottery.

In addition, when legalized sports betting launched in Ohio on New Year’s Day, the Ohio Lottery Commission took on the added responsibility of monitoring sports betting via kiosks in hundreds of bars, restaurants, and other establishments around the state. These responsibilities are different from those of the Ohio Casino Control Commission, which regulates mobile and retail betting.

McDonald had worked with the Ohio Lottery as a member and long-time head of the Ohio Lottery Commission until being named director by DeWine in 2019. He formerly held positions as elections director for Cuyahoga County and with the Ohio secretary of state, Ohio treasurer, and an assistant director of the Ohio Department of Commerce.

*Bookmakers Review will continue to monitor the developments as the investigation proceeds.