The Ohio Lottery has made a significant change in its operations by selecting IGT as the new vendor for a 10-year contract worth $50 million. This contract will oversee over 10,000 slot-like gambling machines across the state, marking the first change in vendor since the terminals were introduced more than a decade ago.
The Ohio Lottery Selects IGT for $50 Million VLT Contract
IGT to Replace Intralot
In 2011, Governor John Kasich allowed the implementation of Video Lottery Terminals (VLTs) in the state’s seven racinos. Since then, Intralot, a Greek supplier of integrated gambling and transaction processing systems, has been responsible for supervising over 11,500 slot-like machines. Intralot’s duties included monitoring machine inputs, payouts, and user behavior for the state.
In March 2012, Ohio began paying Intralot approximately $48.8 million for this contract, according to Danielle Frizzi-Babb, the lottery’s spokeswoman. Now, IGT, a London-based company with a strong interest in various state lottery operations, will take over. The new contract is valued at approximately $47.7 million.
The responsibilities under this new contract will include ensuring that only approved software is uploaded into the slot-like machines, tracking user behavior, and verifying that all games meet the minimum payout requirements. According to the Lottery’s request for proposals, work will commence in June.
Competitive Bidding for the First Time
This change represents the first time Ohio’s VLT contract has undergone competitive bidding. Initially, in 2012, the proposal for competitive bidding was rejected during the attempt to bring racinos online. However, after consulting with industry experts, the lottery agency opened up to the idea of accepting multiple bids. Experts suggested that several companies could offer similar services and argued it was in Ohio’s best interest to bid the contract separately from the gaming system contract.
Three Submitted Bids
Three companies submitted bids for the contract: Intralot, IGT, and M3 Technology Solutions. M3 Technology Solutions, founded in 2005, specializes in creating, deploying, and servicing next-generation software and hardware solutions. The lottery did not disclose the bid prices presented by the losing parties.
Revenue and Impact
In 2023, the state’s VLTs generated over $15 billion in revenue, including $1.35 billion in profits. These profits were distributed among the state Lottery, the Racino Commission, and problem gambling services.
Current Intralot Contracts
Currently, Intralot oversees two other significant Ohio Lottery contracts: a “type C” sports gaming contract featuring 800 sports betting machines, which cover 3% of the sports betting market, and the central gaming contract. The central gaming contract has also been subject to competitive bidding, which has since closed. The Lottery will announce the winner of this contract in October.
Looking Ahead
The selection of IGT for this significant contract marks a new era for the Ohio Lottery’s VLT operations. With IGT’s expertise and experience, the state anticipates continued growth and enhanced efficiency in managing its VLTs, benefiting both the players and the state’s economy.
FAQs: The Ohio Lottery Selects IGT for $50 Million VLT Contract
1. What major change has the Ohio Lottery recently made in its operations?
The Ohio Lottery has selected IGT as the new vendor for a 10-year contract worth $50 million. This contract will oversee over 10,000 slot-like gambling machines across the state.
2. Who was the previous vendor responsible for overseeing the slot-like gambling machines in Ohio?
Intralot, a Greek supplier of integrated gambling and transaction processing systems, was responsible for overseeing the slot-like gambling machines since their introduction in 2011.
3. What responsibilities did Intralot have under its contract with the Ohio Lottery?
Intralot was responsible for supervising over 11,500 slot-like machines, monitoring machine inputs, payouts, and user behavior for the state.
4. How much did Ohio pay Intralot for its contract?
Ohio paid Intralot approximately $48.8 million for its contract.
5. Who is the new vendor taking over from Intralot, and what is the value of the new contract?
IGT, a London-based company, is the new vendor taking over from Intralot. The new contract is valued at approximately $47.7 million.
6. What are IGT’s responsibilities under the new contract?
IGT’s responsibilities include ensuring that only approved software is uploaded into the slot-like machines, tracking user behavior, and verifying that all games meet the minimum payout requirements.
7. When will IGT begin its work under the new contract?
According to the Lottery’s request for proposals, IGT will begin its work in June.
8. Was this the first time Ohio’s VLT contract underwent competitive bidding?
Yes, this change represents the first time Ohio’s VLT contract has undergone competitive bidding.
9. Which companies submitted bids for the new VLT contract?
Three companies submitted bids for the contract: Intralot, IGT, and M3 Technology Solutions.
10. How much revenue did the state’s VLTs generate in 2023?
In 2023, the state’s VLTs generated over $15 billion in revenue.
11. How were the profits from the VLT revenue distributed?
The profits, totaling $1.35 billion, were distributed among the state Lottery, the Racino Commission, and problem gambling services.
12. What other contracts does Intralot currently oversee for the Ohio Lottery?
Intralot currently oversees two other significant Ohio Lottery contracts: a “type C” sports gaming contract featuring 800 sports betting machines and the central gaming contract.
13. When will the winner of the central gaming contract be announced?
The Lottery will announce the winner of the central gaming contract in October.
14. What impact is expected from selecting IGT for the new VLT contract?
With IGT’s expertise and experience, the state anticipates continued growth and enhanced efficiency in managing its VLTs, benefiting both the players and the state’s economy.
