GTECH said Wednesday that its net income shortfall payments to the Illinois Lottery will total $97.5m during the three years it has been providing its services, with the termination of Northstar Lottery Group’s private management agreement expected to incur an additional charge of $20m in its results for the final quarter of 2014.

GTECH, which holds an 80 per cent controlling interest in Northstar, confirmed that the private management agreement (PMA) is expected to end in approximately twelve months time after it reached a termination agreement with the Illinois Lottery this week.The lottery can also decide to extend the termination agreement for up to three six-month periods.

Under the termination agreement, the lottery will pay $12.65m termination for convenience fees and approximately $121m for disentanglement services fees to Northstar for the twelve-month period.

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