America’s GTech Global Services Corporation has signed a four-year contract extension with the California Lottery to provide online and instants central system enhancements, new lottery terminals, a variety of self-service products and messaging display units.
GTech, a subsidiary of Italy’s Lottomatica, has been the California’s primary lottery vendor since 1986 and revealed that the new deal is set to commence in October of next year. The deal could be worth up to $250 million over the contract term with revenues under the extension beginning in the fourth quarter of this year and reaching a normalised run rate in 2009.
“GTech is committed to supporting the California Lottery's strategic business plan and welcomes this tremendous opportunity to assist them in optimising sales and business performance,” said Jaymin Patel, Chief Executive Officer and President for Providence-based GTech.
“The four-year contract extension allows substantial investment into sustainable sales growth, positioning the Lottery well for incremental revenue to California Education.
“Under the extension, GTech will continue to work even more closely with the California Lottery to apply industry-wide best practices, expand the quantity, quality and diversity of their retail base, provide additional convenience for players and retailers alike, further enhance their wagering system and rollout new electronic point-of-sale advertising network-wide.
“By investing in state-of-the-art technology, strategic retail expansion, marketing and operational best practices, the Lottery is proactively leveraging the population growth and demographic changes in California to reach new players in new markets in a socially responsible way.”
“As part of our commitment to our players, retailers, employees and, most importantly, our beneficiary, public education, we are pleased to have our contract and business partnership with GTech for four additional years at a significant savings,” said Joan Borucki, Director for the California Lottery.