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LOTTOMATICA’S GTECH SUBSIDIARY SIGNS ONE-YEAR CONTRACT EXTENSION WITH THE CALIFORNIA LOTTERY TO PROVIDE RETAIL EQUIPMENT, MESSAGING DEVICES, AND ENHANCED PLAYER SERVICES
GTECH’S G2 DIVISION TO PROVIDE THE CALIFORNIA LOTTERY WITH NEW PLAYER PLATFORM; FIRST FOOTHOLD FOR
GTECH G2 IN THE U.S. LOTTERY MARKET
GTECH EXPECTS TO RECEIVE REVENUES IN THE RANGE OF
$40 MILLION TO $50 MILLION, COMMENCING IN THE
FOURTH QUARTER OF 2013
ROME (ITALY) – PROVIDENCE, RHODE ISLAND (U.S.) – (October 7, 2009) – Lottomatica Group’s wholly-owned subsidiary, GTECH Corporation, announced that it has signed a contract amendment with the California Lottery to provide products and services focused on innovative messaging devices and enhanced player services, as well as gaming system equipment and related services for an additional one-year period commencing October 14, 2013.
In July 2008, GTECH signed a four-year contract extension with the California Lottery which was to expire on October 13, 2013; this latest amendment extends the contract until October 13, 2014. This one-year contract amendment is expected to generate $40 million to $50 million in revenues for GTECH commencing in October 2013.
The contract will allow California to be the first Lottery in the nation to deploy this wide range of innovative messaging devices to keep its players informed and to create enough excitement to add new players. California will acquire a total value of more than $17.3 million in messaging devices and enhanced player services.
“When we signed our four-year extension with the California Lottery in 2008, the Lottery’s long-term business plan called for retailer recruitment, thus the contract extension contained necessary equipment to support the anticipated
retailer expansion plans,” said GTECH President and CEO Jaymin B. Patel. “However, due to the current challenging business climate, our focus in support of the Lottery has now shifted to sustaining the Lottery’s retailer base and investing in ways to increase revenue and brand awareness via the Lottery’s existing retailer network. Working with the California Lottery, we have developed a business strategy to attract players at retail locations through innovative messaging devices, and we will offer more robust programs and services for players through the implementation of GTECH G2’s player services platform to support the Lottery’s future player loyalty programs. All of this combined will allow the California Lottery to be the first in the nation to deploy such innovative ideas.”
“By offering a host of retail solutions and enhanced player services, we will be able to answer the demands of California’s lottery retailers and players, and continue to ensure we raise much-needed funds for education,” said California Lottery Executive Director Joan Borucki.
Through GTECH G2’s new player platform, the California Lottery will be able to expand its Jackpot Captains and Second Chance Game programs by creating a player loyalty program that will provide functions such as tracking player activity so that additional services, including customized promotions, can be offered to players.
Also under the terms of the amendment, GTECH will increase the flow of information to California Lottery players through the deployment of 7,500 LED jackpot signs to drive awareness of the Lottery’s draw games.
GTECH will deploy 550 Instant Showcase™ units to provide enhanced retailer accounting and increased instant-ticket sales, as well as 500 contemporary lottery play centers embedded with multimedia digital signage technology to attract more players and sales interest at Lottery-specified retailer locations. The Company will also install its Enterprise Series MultiMedia screens on the existing 1,350 Lotto To Go™ self-service machines for both consumer information and security.
GTECH will continue to provide ongoing services to the Lottery including the operation and maintenance of the Lottery’s integrated gaming system; installation and maintenance of 60,000 gaming equipment units in more than 21,000 retailer locations across the state; software development and support for core gaming and administrative applications; and marketing and research services.
GTECH has been the online lottery services provider to the California Lottery since 1986. Since its inception in 1985, the Lottery has contributed approximately $21 billion to California schools.
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Lottomatica Group 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 companies are the only vertically integrated full service lottery group. Lottomatica Group 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.
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For further information:
Simone Piattelli Palmarini
Lottomatica Group S.p.A
Media Communications
T. (+39) 06 51899877
M. (+39) 335 5305097 |
Robert K. Vincent
GTECH Corporation
Public Affairs
T. (+1) 401 3927452 |
Giuliano Boggiali
Lottomatica Group S.p.A
Investor Relations
T. (+39) 06 51899020 |
This press release and the previous ones are available on Lottomatica and GTECH web sites: www.lottomaticagroup.com - www.gtech.com