GTECH Signs €550 million Deal with Spain’s ONCE26th October 2009 9:15 am GMT
A joint venture between Lottomatica Group subsidiary GTECH Global Lottery SLU and Spain's leading integrated logistics operator, LOGISTA S.A, has been awarded a multi-year contract to provide lottery services to Organizacion Nacional de Ciegos de Espana (ONCE), worth €50 million in annual revenues to GTECH.
Together with LOGISTA, GTECH will collaborate with ONCE to offer end-to-end lottery solutions, including a complete range of marketing and logistic services, as well as advising ONCE on a diversified product and game mix tailored to meet the needs of ONCE's expanded retail landscape.
The network will complement ONCE's existing 22,000 lottery agent network with thousands of new retail locations selling online and instant-ticket lottery products.
The multi-year contract commences this month and runs until December 2020 following a competitive procurement, with GTECH and LOGISTA holding a 50% stake in the joint venture.
"Lotteries today are constantly exploring new forms of retailer venues, player channels and games, in an effort to increase revenues for good causes. With the addition of this sales channel, ONCE will essentially be complementing its sales network to reach players and locations it cannot reach today," said GTECH President and CEO Jaymin B. Patel.
As part of the joint venture, GTECH will also provide ONCE with a wide array of lottery products including 'Imagine' online terminals and 'Lottery Inside' for thousands of new retailers comprising of tobacconist shops, news stands, gas stations and other establishments. Lottery Inside allows retailers to sell and distribute online lottery products without a dedicated lottery terminal in the checkout aisle.
"As the lottery system provider for ONCE's lottery agents since 2003, GTECH understands the complexities of the Spanish gaming market, the changes in player preferences, and being able to offer lottery products where and how consumers want them."
"ONCE is one of the most highly-regarded lotteries in the world. We are extremely pleased to have been selected with LOGISTA for this very important project," continued Patel.
The contract is still subject to positive verification of related game regulation modifications by the Protectorate Board, the government administrative body that supervises relevant acts of ONCE.
ONCE was established in 1938 to provide full care and employment opportunities for sight-impaired residents of Spain, and is authorized by the Spanish government to administer lottery and wagering games in the country.
Shares in Lottomatica Group (Co. Profile) (MI:LTO) have gained 1.19% to €15.33 per share in Milan this morning.