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US – GTECH to provide technology for Minnesota State Lottery

By - 20 April 2015

International Game Technology has confirmed that its subsidiary GTECH Corporation has entered into a contract with the Minnesota State Lottery to provide new lottery technology, an IP communications network, multimedia displays, self-service products, and ongoing support services, following a competitive procurement.

The 7.5 year integrated services contract with the Lottery contains three renewal options of one year each, or up to one renewal of three years, or any variation thereof.

The company expects to receive approximately $75m to $80m in revenues over the base 7.5 year contract period, which runs through August 9, 2023. The Minnesota State Lottery has been a valued customer since 2003.

“The Minnesota State Lottery has built its success based upon strong retailer relationships and understanding its players’ preferences,” said IGT CEO of North America Lottery Michael Chambrello. “We will continue to work in partnership with this forward-thinking lottery to offer the most appropriate technology solutions and a diversified product mix tailored to meet the ever-changing needs of the Lottery’s retail landscape, and adapt as its business evolves over the next seven-and-a-half years. As well, we will remain focused on maximizing profitability for the Lottery by continually searching for ways to grow sales while operating effectively and efficiently.”

“IGT is the right partner for building on the Lottery’s 25 years of success and maximising the Lottery’s contribution to the State of Minnesota,” said Minnesota State Lottery Executive Director Ed Van Petten.

Under the terms of the contract, the company will provide the Minnesota State Lottery with innovative, expandable technology, a flexible set of retail solutions, and data-driven, decision-making tools to help increase revenues to the State of Minnesota. The company will also replace the Lottery’s existing central system with the latest version of Enterprise Series (ES) central system solution to support all levels of the Lottery’s sales growth. The Request for Proposals (RFP) also called for the replacement of the Lottery’s existing terminal base with approximately 3,200 new Altura GT1200 terminals.

The latest ES MultiMedia digital advertising display solution will be provided to stimulate increased brand awareness, winner awareness, and player recognition of jackpots and game activities, directly at the point-of-sale, as well as Ticket-Scan Plus self-service ticket checkers for players. In addition, the Company will replace the current communications network with a combination of VSAT technology and Dual Comm Inside.

The company will maintain its primary data center in Roseville, Minnesota, and its backup data center in Austin, Texas, providing ongoing services such as operation and maintenance of the central system; maintenance of the terminals and communications network; field services; retailer training; and hotline management.

Proceeds from the Minnesota State Lottery benefit the Game and Fish Fund, Natural Resource Fund, and the Environment and Natural Resource Trust Fund, among other good causes.

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