Posted on: February 27, 2022, 02:38h.
Last updated on: February 27, 2022, 02:38h.
International Game Technology (NYSE:IGT) said Friday it agreed to a wide-ranging, 20-year contract extension with the Rhode Island Lottery.
Rhode Island Lottery headquarters. IGT signed a 20-year contract extension in the state. (Image: ABC6)
The lottery operator and slot machine manufacturer has a lengthy history in the state and while financial terms (it’s likely worth $1 billion) of the extended contract weren’t revealed, IGT is committing to keeping 1,100 “lucrative jobs” in Rhode Island.
IGT has signed a comprehensive 20-year contract extension with the Rhode Island Lottery to remain the exclusive supplier of lottery, iLottery, instant ticket, and video lottery solutions and services through June 30, 2043,” according to a statement issued by the company.
News of the Rhode Island extension comes at a time when gaming analysts are bullish on lottery businesses, including IGT’s. Lottery assets are cash generators and desirable in the investment community, but often don’t get full credit when the parent company has other lines of business.
IGT, Rhode Island History
IGT has long loomed large over the Rhode Island gaming scene, both in terms of lottery services and gaming machines at the states two casinos — Tiverton and Twin Rivers.
The company’s allegedly cozy relationship with former Gov. Gina Raimondo (D-RI) drew the ire of state Republicans and the operator of the aforementioned casinos — Twin River Worldwide Holdings, Inc. (TRWH), which is now Bally’s.
In 2019, Twin Rivers proposed a plan to run Rhode Island’s lottery while claiming IGT’s slot dominance in the state was harmful to taxpayers because IGT machines were stale and unappealing to gamblers. IGT balked at the notion of ceding the lottery pact, noting that if the deal fell through, it cannot afford to keep 1,100 staffers in the state.
That was then and now, the sides are playing nice and that’s a relief to Rhode Island policymakers because the lottery is the state’s third-largest revenue generator.
“IGT, through a joint venture with Bally’s Corporation, will be the exclusive supplier of video lottery terminals to the Lottery commencing January 1, 2023,” according to the statement.
IGT Modernization Plans
As part of the contract extension, IGT is planning an array of updates and technology enhancements for the Rhode Island Lottery.
For example, the company’s scrapping the Lottery’s draw-based lottery central system in favor of its Aurora product along with a technology update of the lottery terminals and telecommunications equipment. Both efforts are scheduled to take place this year and those systems will be refreshed with new tech again in 2023.
“IGT will also upgrade the Lottery’s iLottery system in 2023, offering a suite of powerful analytics for the Lottery,” said the gaming company. “Additionally, IGT will continue as the exclusive printer and supplier of instant tickets to the Lottery.”
In 2025, IGT will replace “the Lottery’s video lottery central system connecting all of the video lottery terminals deployed by the Lottery at the two casinos operated by the Lottery.”