GTECH Signs Five-Year Extension with California Lottery

Lottomatica Group S.p.A. announced that its subsidiary GTECH Corporation has signed a five-year contract extension with the California Lottery to provide online/instants central system enhancements, new lottery products, and ongoing services.

GTECH has been the California Lottery’s primary vendor since 1986. The five-year extension will commence on October 14, 2014, and is expected to generate revenues to GTECH in excess of $400 million over the contract extension term, beginning in the fourth quarter of 2014.

GTECH’s current compensation rate structure will continue through the term of its extended online/instants system and services contract with the California Lottery. “Recent legislative actions to improve prize payout structures for the California Lottery offer great potential for new growth and increased support for the Lottery’s education beneficiaries.

With this contract extension, we are pleased to be able to continue our partnership with the Lottery to support their next phase of growth,” said GTECH President and CEO Jaymin B. Patel. “We will work even more closely with the Lottery over the next several years to apply marketing and operational best practices, enhance their product and game portfolio, and provide them with a flexible, scalable platform to launch the next-generation of gaming technology, which will benefit the Lottery, their retailers, and players alike.”

“We are pleased to extend our partnership with GTECH for an additional five years,” said California Lottery Director Joan Borucki. “As part of our strategic business plan, along with our evolving technology and service requirements, GTECH will be providing the California Lottery with system software enhancements and player services that will provide the capacity and tools to facilitate the growth and vision of our business, in order to maximize returns for public education in California.”

Under the five-year extension, GTECH will upgrade its Enterprise Series central gaming system, resulting in enhancements to the California Lottery’s back office, inventory management, and reporting systems. Moreover, the extension will allow for an expanded Player Services package that complements the Lottery’s player platform currently in implementation.

The Player Services package will facilitate an itemized player loyalty and relationship management system including a second chance drawing feature, subscription play, player registration, and player claim card capabilities. GTECH will continue to maintain data centers in Sacramento, California, and in Austin, Texas, in support of the Lottery’s operations.

The Company will also continue to provide ongoing services to the Lottery such as support and maintenance of the central system, satellite telecommunications network, and more than 80,000 gaming equipment units and point-of-sale hardware in over 21,000 retailer locations; marketing and research services; and call center support. Since its inception in 1985, the California Lottery has contributed more than $22 billion for public education.

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