News Details

EXPECTED REVENUES TO GTECH OF APPROXIMATELY
US$250 MILLION OVER THE SIX-YEAR CONTRACT PERIOD

ROME (ITALY) - PROVIDENCE, RHODE ISLAND (US) - Lottomatica S.p.A. announced that its wholly-owned subsidiary, GTECH Corporation, has signed a six-year integrated services contract to provide new lottery technology and ongoing services to the Michigan Bureau of State Lottery (Michigan Lottery), GTECH’s lottery customer since 1988.  The contract, which shall commence on January 20, 2009, includes six one-year extension options and is the result of a competitive procurement process.  GTECH expects to receive approximately US$250 million in revenues over the six-year base period.
“As one of the most successful lotteries in the U.S., the Michigan Lottery is challenged to continue to respond to changes in the industry and the demands of the marketplace,” said GTECH President and CEO Jaymin B. Patel.  “As the Michigan Lottery’s longstanding partner, GTECH is ready to assist the Lottery in meeting those demands, and in growing and enhancing their contributions to education in Michigan.”

The Michigan Lottery currently ranks ninth in the U.S. in terms of total sales with more than $2.3 billion recorded in its most recent fiscal year.
Under the terms of the new contract, GTECH will convert the current lottery system to GTECH’s Enterprise Series™ (ES) online and instants system solution. The Company will also install a new IP-telecommunications network and up to 11,000 Altura® terminals.
In addition, approximately 11,000 Ticket-Scan™ machines, the Company’s self-service ticket-checker product, will be installed.  GTECH will also deliver player messaging and transaction displays through its ES Multi-Media program network, and flat-panel Club Keno monitors will be installed in support of over 2,300 Club Keno retailers throughout Michigan.
As part of the wide array of lottery products to be delivered to the Michigan Lottery over the new contract, the Company expects to provide up to 1,350 Instant to Go™ 24 units and 500 of its online lottery self-service kiosk, Lotto To Go™.  In addition, up to 200 Lottery To Go™ and 200 Instant Showcase™ are expected to be installed.  GTECH’s self-service instant-ticket dispenser, Instant To Go 24, offers players a selection of 24 games, while Lottery To Go combines instant-ticket vending machine features with online lottery self-service capability. Instant Showcase, an automated instant-ticket management system, displays instant tickets right at the retail checkout. The Company’s InfoAccess™ ITVM Connectivity feature will allow these instant-ticket vending machines to be fully integrated with the Michigan Lottery’s systems and terminals.
GTECH will continue to provide an in-state primary data center, with a back-up data center in Austin, Texas.  The Company will also provide instant-ticket services, including instant ticket warehousing and distribution.  Moreover, GTECH will offer ongoing services to the Lottery such as maintenance of the central system, terminals, and communications network; field service; retailer training; marketing support; and call center support services.