Diamond Game Enterprises, the lottery technology subsidiary of Canada's Amaya Gaming Group, has been awarded a five-year deal to provide its services to Maryland Lottery.

Following a competitive tender process, Diamond Game was awarded a five-year contract by the Maryland Lottery and Gaming Control Agency, with a renewal option for a further five years, under which it will provide the state with instant lottery ticket machines and related services in social clubs for veterans.

The devices are unique to Diamond Game, which holds 16 patents for the machines. Each terminal dispenses pre-printed, scratch-off lottery tickets, with all machines linked by a central management system that collates accounting records.

Under the terms of a law passed by the Maryland Legislature in 2012, Veterans’ Organisations are allowed to place up to five lottery ticket machines in each establishment, with an estimated 150 eligible venues across the state. Diamond Game expects to begin deployment of the machines by the end of 2014.

The supplier will receive a firm-fixed percentage of proceeds from the machines, with the contract estimated to be worth up to $57m over the first five years, with the renewal option thought to be worth up to $60m.

Diamond Game president Jim Breslo said the company was “pleased and proud” to expand its relationship with the lottery, which dates back almost eight years.

“Our unique style of ticket dispensers have been in operation in bingo, fraternal, and veteran halls in Anne Arundel County, Maryland since 2006,” he explained. “We have also had our VLTs at the Maryland Live! and Ocean Downs casinos through the Maryland Lottery since 2011."

The supplier has signed a number of similar deals across a number of states, rolling out the machines in veteran and fraternal clubs in Missouri; charitable bingo halls in Ontario; and charitable bingo halls and clubs in New Mexico.

“The award of this Contract validates our efforts to provide a true next generation ticket dispenser designed to keep up with the modernization that is taking place in other areas of the gaming industry,” Breslo continued. “Further, it demonstrates a trend of states permitting non-profit organizations to provide entertaining and profitable games for its members.

“We're proud to be part of this effort, and especially proud to be supporting Maryland's veterans,” he concluded.

Shares in Amaya Gaming Group Inc. (Co.Data) (TSX:AYA) closed yesterday down 1.74 per cent at $6.76 per share in Toronto.

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