PA Dept. of Revenue Selects GTECH to Provide Terminal-Based Game Services for Lottery

HARRISBURG – Secretary of Revenue Tom Wolf announced that the department has selected GTECH Corp. to supply terminal-based game services to the Pennsylvania Lottery.

GTECH, based in Providence, R.I., was chosen following an open and competitive procurement process. Wolf said a committee comprised of employees from the Department of Revenue and the PA Lottery began evaluating vendor proposals in July. The committee determined that GTECH’s proposal offered the best combination of experience in the lottery industry, innovation, minority participation, technical expertise and cost.

“GTECH is a leader in the worldwide terminal-based lottery game business,” said Wolf. “The state-of-the-art services the company will provide under this new contract will help the Pennsylvania Lottery expand its retailer network, enhance its game offerings and improve service and convenience for lottery players and retailers.”

Wolf said the department will immediately begin negotiations with GTECH on a five-year contract, with up to five, one-year extensions. The terms of the contract will not be determined until it is finalized, but Wolf said the cost will be at least $25 million less per year compared to the commonwealth’s existing contract. Wolf said GTECH will be paid a percentage of the Lottery’s ticket sales. The contract will go into effect on Jan. 1, 2009.
Services provided by GTECH under the new contract will include:

• Replacing the communications network and terminals at all Lottery retail locations. The new terminals will feature touch-screen technology and online support for retailers and they will also allow players to check their own tickets to see if they have won.
• Training retailers to use the equipment; installing and maintaining the new system and terminals; managing the retailer call center and other retailer-support services.
• Supporting new game development and other marketing initiatives.

GTECH services lotteries in numerous states, including Kansas, Virginia, Oregon, Missouri, Rhode Island, New York, Florida, Connecticut, Georgia, Texas and California.

Scientific Games, based in Alpharetta, Ga., currently provides terminal-based lottery services to the PA Lottery, but that contract will expire on Dec. 31. The company was paid approximately $50 million for fiscal year 2006-07.

Scientific Games also provides instant game services to the Pennsylvania Lottery. In August 2006, Scientific Games was selected to provide instant game services for five years, with up to five, one-year extensions. That contract was effective April 10, 2007.

“The Pennsylvania Lottery is fortunate to now have industry leaders working for it – one on the terminal-based games and the other on instant ticket games,” said Wolf.

GTECH is in the second year of a five-year contract with the Revenue department to operate the control computer system that monitors slots gaming in Pennsylvania.

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