Pennsylvania Department of Revenue Selects GTECH to Provide Terminal-Based Game Services...

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Tue Jan 15, 2008 5:12pm EST

Pennsylvania Department of Revenue Selects GTECH to Provide Terminal-Based
Game Services for Pennsylvania Lottery

Revenue Department, GTECH Begin Negotiating Five-Year Contract

HARRISBURG, Pa., Jan. 15 /PRNewswire-USNewswire/ -- Secretary of Revenue Tom
Wolf today announced that the department has selected GTECH Corp. to supply
terminal-based game services to the Pennsylvania Lottery. 

GTECH, based in Providence, R.I., was chosen following an open and competitive
procurement process. Wolf said a committee comprised of employees from the
Department of Revenue and the PA Lottery began evaluating vendor proposals in
July. The committee determined that GTECH's proposal offered the best
combination of experience in the lottery industry, innovation, minority
participation, technical expertise and cost. 

"GTECH is a leader in the worldwide terminal-based lottery game business,"
said Wolf. "The state-of-the-art services the company will provide under this
new contract will help the Pennsylvania Lottery expand its retailer network,
enhance its game offerings and improve service and convenience for lottery
players and retailers."

Wolf said the department will immediately begin negotiations with GTECH on a
five-year contract, with up to five, one-year extensions. The terms of the
contract will not be determined until it is finalized, but Wolf said the cost
will be at least $25 million less per year compared to the commonwealth's
existing contract. Wolf said GTECH will be paid a percentage of the Lottery's
ticket sales. The contract will go into effect on Jan. 1, 2009. 

Services provided by GTECH under the new contract will include: 
-- Replacing the communications network and terminals at all Lottery retail
locations.  The new terminals will feature touch-screen technology and online
support for retailers, and they will also allow players to check their own
tickets to see if they have won. 
-- Training retailers to use the equipment; installing and maintaining the new
system and terminals; managing the retailer call center and other
retailer-support services.  
-- Supporting new game development and other marketing initiatives.

GTECH services lotteries in numerous states, including Kansas, Virginia,
Oregon, Missouri, Rhode Island, New York, Florida, Connecticut, Georgia, Texas
and California.

Scientific Games, based in Alpharetta, Ga., currently provides terminal-based
lottery services to the PA Lottery, but that contract will expire on Dec. 31.
The company was paid approximately $50 million for fiscal year 2006-07.  

Scientific Games also provides instant game services to the Pennsylvania
Lottery.  In August 2006, Scientific Games was selected to provide instant
game services for five years, with up to five, one-year extensions.  That
contract was effective April 10, 2007.  

"The Pennsylvania Lottery is fortunate to now have industry leaders working
for it -- one on the terminal-based games and the other on instant ticket
games," said Wolf.   

GTECH is in the second year of a five-year contract with the Revenue
department to operate the control computer system that monitors slots gaming
in Pennsylvania.  

CONTACT: Stephanie Weyant
(717) 787-6960


SOURCE  Pennsylvania Department of Revenue

Stephanie Weyant of the Pennsylvania Department of Revenue, +1-717-787-6960
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