Gaming and lottery supplier GTECH has been awarded a ten-year deal to continue providing its lottery services to the Belgian National Lottery (Loterie Nationale), which is expected to generate approximately €125m in revenue for the company over the contract period.
The company’s subsidiary, GTECH Global Services Corporation, has been granted an online gaming system, terminals, and integration contract to provide end-to-end services for the lottery.
The proposed contract, which is expected to commence this month, follows a competitive negotiated procurement process and is based on an IT services model. GTECH expects to receive approximately €125m in revenues over the ten-year term.
GTECH International president and CEO Walter Bugno said the award was “significant” for GTECH as it allows the company to build upon the existing relationship with the Belgian National Lottery which dates back to 1993 when it deployed the lottery’s first gaming system.
“Working together with the lottery, we have created customer-focused innovations and new games, and, as a partner, we have gained a deep understanding of the Belgian marketplace as it exists today, and determined what the right path is for the future,” said Bugno. “GTECH looks forward to transitioning from the current contract to the new IT services model and upgrading the lottery’s operating systems and its retailers with our latest product solutions and services that will create greater efficiencies and drive even higher sales growth.”
The IT services model aims to drive services quality and to closely align GTECH’s services with the business requirements of the lottery. It calls for the set-up of integrated business tools, end-to-end processes based on IT industry standard practices (ITIL), and the establishment of a governance organization responsible for managing operations for the NLB.
“Time-to-market is extremely important in today’s business environment, and the same holds true for the lottery business,” said Roger Malevé, operations and procurement director for Loterie Nationale. “This services arrangement with GTECH will allow us to introduce innovations more rapidly and be better prepared in the longer term to grow the business in a competitive marketplace.
“The business alignment through the governance model is key in this model and will allow us to translate new technology into innovative services for our players and to become a more attractive and socially responsible gaming provider.”
GTECH will provide the lottery with gaming technology, performance driven services, and an integrated business environment. The company will provide its Enterprise Series (ES) central system solution and replace the lottery’s existing terminal base with 5,550 Altura GT1200 terminals.
GTECH will also deploy mobile and handheld terminals as well as self-service ticket checkers. The company already provides its interactive gaming system to the lottery, allowing it to sell traditional lottery style games to players over the internet.
The company said that the new contract will strengthen its presence in Belgium and in Europe. The gaming operations and maintenance will be delivered from GTECH’s operations center in Warsaw, Poland.
Shares in GTECH S.p.A (Co. Data) (MIL:GTK) are currently trading at €21.16 per share in Milan this morning.