News Details

Lottomatica’s Gtech subsidiary chosen as preferred bidder by the New York lottery for new online/instant system lottery contract
Expected revenues to Gtech in excess of § 550 million over the seven-year contract term

ROME (ITALY) and PROVIDENCE, RHODE ISLAND (U.S.) – March 23, 2009 – Lottomatica S.p.A.’s wholly-owned subsidiary, GTECH Corporation, announced that it has been chosen as the preferred bidder to negotiate a seven-year integrated services contract with the New York Lottery to provide new online lottery solutions and services. The Lottery has the option to extend the contract for an additional three years. GTECH’s proposed solution set includes a full suite of online and instant systems, up to 20,000 online lottery terminals, a variety of self-service lottery products and multimedia technology, a new wireless telecommunications network, instant-ticket warehousing, and ongoing services.

The proposed contract, which is expected to commence in March 2010, follows a competitive procurement process. The New York Lottery estimates the total value of the contract to be more than $550 million over the contract period. Subject to a protest period which ends on April 3, 2009, the finalization of the contract is slated for approval by the Attorney General and the State Comptroller by June 10, 2009, but may go beyond that date. GTECH has been a lottery technology and services provider to the New York Lottery since 1986.

"We are honored to have the largest lottery in North America and one of the most respected in the world, the New York Lottery, remain as our valued customer," said GTECH President and CEO Jaymin B. Patel. "Lotteries from around the world look to the New York Lottery as a model for balanced and sustainable growth among their online, monitor, and instant game portfolios. As the Lottery’s online vendor, GTECH will continue delivering the maximum player experience, integrity, security, and profitability, in order to ensure the New York Lottery continues to be the standard bearer for the global lottery industry."

"We are pleased to continue our successful partnership with GTECH and look forward to a new generation of state-of-the-art equipment. The New York Lottery makes extreme demands on its full service system, with huge transaction volume, complexity of operations, diverse geography, extensive marketing and constantly-evolving game choices. Reliability, integrity, and experience are critical to a successful relationship, and GTECH has consistently delivered on all these points," said Gordon Medenica, Director of the New York Lottery.

Under the proposed new contract, GTECH will provide its Enterprise Series solution, specifically tailored to offer a best practices technology approach to support the New York Lottery’s successful business plan with the flexible tools needed to increase sales and revenue contributions to education. In addition, GTECH will install and maintain up to 20,000 new Altura® lottery terminals, as well as a new IP-communications network. GTECH will also introduce ES MultiMedia digital advertising displays to stimulate increased brand awareness of the New York Lottery product line across the entire retail network at the point-of-sale. The Company will expand the Lottery’s self-service network through additional Ticket-Scan™ ticket-checker units. Additionally, the Lottery has the option to purchase other self-service products from GTECH including Lottery To Go™ and Instant To Go™ vending machines. Over the duration of the new contract, GTECH will continue providing the operation and maintenance of the central system; terminal maintenance; warehousing and distribution of instant tickets; field service; marketing consultancy; and hotline management.

"We are proud of our successful 23-year partnership with the New York Lottery," continued Mr. Patel. "During that time, we have been privileged to assist them in launching new online and monitor games, expanding their retailer base to more than 16,000 locations today, and helping them to achieve record sales. Over the next several years, we will continue to work together with the Lottery on enhancing their product and game portfolio, and providing them with a flexible platform to launch the next-generation of gaming technology, in order to maximize even greater returns for education programs in New York."

The New York Lottery recorded more than $7.5 billion in total sales in its fiscal year 2008, an impressive $2.6 billion of which was allocated to educational programs in New York.

Lottomatica is a market leader in the Italian gaming industry and one of the largest Lottery operators in the world based on total wagers and, through its subsidiary GTECH Corporation, is a leading provider of lottery and gaming technology solutions worldwide. Together, the Company is the only vertically integrated full service lottery company. Lottomatica is majority owned by De Agostini, which belongs to a century-old publishing and media services group. Lottomatica is listed on the Stock Exchange of Milan under the trading symbol “LTO”. In 2008, the Company had approximately €2.1 billion in revenues and 7,500 employees in over 50 countries when combined with GTECH.