ROME (ITALY) – PROVIDENCE, RHODE ISLAND (U.S.), October 26, 2009 – Lottomatica Group S.p.A. announced that GTECH Global Lottery SLU, and Spain’s leading integrated logistics operator, LOGISTA S.A., have signed a contract with Organizacion Nacional de Ciegos de Espana (ONCE) to provide end-to-end lottery technology, marketing services, logistics, and retailer services for a complementary retailer network. This network will complement ONCE’s existing 22,000 lottery agent network with thousands of new retail locations selling online and instant-ticket lottery products. The joint venture created by GTECH and LOGISTA, with each company holding a 50 percent equity stake, was awarded a multi-year contract following a competitive procurement. The contract, which is subject to positive verification of related game regulation modifications by the Protectorate Board, the government administrative body that supervises relevant acts of ONCE, commences October 2009 through December 2020, and is expected to generate average annual revenues to GTECH of €50 million over the contract term. ONCE was established in 1938 to provide full care and employment opportunities for sight-impaired residents of Spain, and is authorized by the Spanish government to administer lottery and wagering games in the country.
“Lotteries today are constantly exploring new forms of retailer venues, player channels and games, in an effort to increase revenues for good causes. With the addition of this sales channel, ONCE will essentially be complementing its sales network to reach players and locations it cannot reach today,” said GTECH President and CEO Jaymin B. Patel. “As the lottery system provider for ONCE’s lottery agents since 2003, GTECH understands the complexities of the Spanish gaming market, the changes in player preferences, and being able to offer lottery products where and how consumers want them. Together with LOGISTA, we look forward to collaborating with ONCE to offer end-to-end lottery solutions, including a complete range of marketing and logistic services, as well as advising ONCE on a diversified product and game mix tailored to meet the needs of ONCE’s expanded retail landscape over the next 11 years.”
“ONCE is one of the most highly-regarded lotteries in the world, ,” continued Mr. Patel. “We are extremely pleased to have been selected with LOGISTA for this very important project.”
Over the contract period, GTECH will implement the Company’s Enterprise Series solution, which will enhance ONCE’s capabilities to process online and instant-ticket transactions for the new complementary retailer base, and the existing kiosk/street vendors, combined. As part of the joint venture, GTECH will also provide ONCE with a wide array of lottery products including Imagine™ online terminals and Lottery Inside for thousands of new retailers comprised of tobacconist shops, news stands, gas stations, and other establishments. Lottery Inside allows retailers to sell and distribute online lottery products without a dedicated lottery terminal, in the checkout aisle.
In addition, GTECH’s ES Connect offers a highly-secure, high-volume IP-based open standards network interface allowing ONCE to integrate third-party applications into the Enterprise Series central system solution once it is operational.
GTECH will also deploy a variety of other products including Ticket-Scan™ units, the Company’s ticket checkers, allowing players secure access when identifying winning tickets in addition to the amount won. Moreover, GTECH will introduce ES MultiMedia digital advertising displays to stimulate increased brand awareness, winner awareness, and player recognition of jackpots and game activities, directly at the point-of-sale.
GTECH will provide consultancy for the design and procurement of a nationwide IP telecommunications network, as well as marketing and consulting services including online and instant products design and development; retail marketing services; marketing communications services, including media advertising; and market analyses.
As the first comprehensive logistics operator in both Spain and Portugal, and one of the largest companies operating in the south of Europe, LOGISTA will use its knowledge and expertise in those sales channels it currently operates, as well as its logistics and distribution capabilities, to perform services in logistic operations, customer service, invoicing and cashing at the lottery retailer points-of-sale for ONCE.
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