Lottery and gaming supplier GTECH has signed a six-year deal to provide a range of draw-based and instant-ticket solutions to its long-term partner in Mexico, Pronósticos para la Asistencia Pública.

The full-service agreement was signed by GTECH Corporation and GTECH Servicios de México, two subsidiaries of the company, following a competitive procurement process.

GTECH will launch an integrated draw-based and instant-ticket system for Pronósticos based on its Enterprise Series platform, and will replace the lottery's draw-based terminals with its Altura GT1200 and GT1100 terminals.

Operation of the products is expected to begin in September this year, with GTECH projecting revenue of more than $130m over the six-year period. Pronósticos has been a customer of GTECH since 1987.

GTECH Americas president and chief executive Jaymin Patel said his company was fully prepared to support Pronósticos’ growth strategy with solutions flexible enough to adapt to industry changes and the Mexican market’s requirements.

“This agreement represents the continuation of our almost three-decades-long commitment to increasing Pronósticos’ returns, which support social programs in México,” he added.

GTECH will supply the lottery with a minimum of 11,000 draw-based lottery terminals, a communications network, as well as additional lottery products and services to Pronósticos. The company will also update Pronósticos’ communications network to 3G, 4G and LTE cellular technology, and provide ongoing services.

These ongoing services include continuous development of new retail channels using the ES Connect B2B solution; installation, repair, maintenance and monitoring of its total base of online terminals; field service; call centre operations and hotline management.

GTECH will also provide transaction processing solutions for online games, as well as processing and distribution of instant tickets, a fixed-odds sports betting retail network and marketing support.

“For the past 27 years, GTECH has supported Pronósticos in generating a sustainable and robust source of funding for social programs in México,” Pronósticos director general María Esther de Jesús Scherman Leaño said of the new partnership. “The continuation of this long-term partnership will help to modernize Pronósticos’ lottery program and launch the next phase of our growth for the benefit of the communities it serves.”

The partnership has been the subject of controversy after two companies that also made submissions for the contract to power Pronósticos, the Intralot-backed Sorteo Games and Win Systems, complained that GTECH submitted technical proposals to the operator’s request for proposals committee after rival submissions had been unsealed.

Mexico's Organisation of Internal Control subsequently launched an investigation into the tender process. GTECH’s previous contract, signed in 2010, expired in September last year.

Shares in GTECH S.p.A. (Co.Data) (MIB:GTK) are currently trading down 0.05 per cent at €18.58 per share in Milan this morning.

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