The Rhode Island based GTECH Holdings Corporation yesterday announced its selection by Washington’s Lottery for a new long-term contract providing for a new online and instant lottery system, terminals, communications network and ongoing services. GTECH has been the Washington’s Lottery technology partner since 1995 but the new contract was won after a competitive tender.

GTECH did much to pioneer the online lottery business and is now a global leader in the industry. Employing around 5,300 people, the company has offices in Australia, Belgium and Brazil and provides integrated technology, creative content and business services to gaming markets across the world. In December last year GTECH entered an agreement to acquire a 50% controlling equity stake in Atronic, owned by the privately held Gauselmann Group. The purchase is expected to be completed 31 December 2006 and the alliance is seen as the creation of a strong new global competitor and market innovator in the gaming industry.

Yesterday GTECH also announced that its joint venture with Loxley Public Company Limited, founded in Thailand in 1939 as Loxley Rice Company (Bangkok) Limited, has signed a five-year agreement to provide equipment and services for Thailand’s first-ever online lottery. The joint venture partnership LOXLEY GTECH Technology Co Ltd (LGT), in which GTECH holds a 49% equity, will provide leading-edge technology and best-practice project management principles to deliver a world class lottery solution and services to the Government of Thailand.

Under the terms of the agreement, GTECH will provide a turnkey solution to LGT consisting of its Enterprise Series, which has multiple layers of security, system controls, procedures, auditing and accountability, and around 12,000 Altura terminals. LGT will then provide the equipment and integrated services to the Government Lottery Office (GLO). During the 5-year agreement the lottery may expand to 15,000 Altura terminals and, additionally, GTECH will provide software management and licensing rights to LGT. The GLO anticipates that commercial operation of the online system will commence by the end of February 2006.

The Thailand agreement is expected to generate approximately US$35 million in product sale revenue and US$17 million in service revenue. Perhaps even more importantly it is seen as opening potential opportunities for GTECH in the Asia-Pacific region where gaming markets are rapidly expanding.
(E-08.03.05)

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