Michigan Lottery Extends Contract with GTECH Corp. for Two Years

MiLottery Horz logoThe Michigan Lottery has extended by two years its contract with the GTECH Corp., which provides products and services to support the Lottery’s draw games, such as Powerball, Mega Millions, Classic Lotto 47, and Club Keno.

The Lottery’s current six-year contract with GTECH was scheduled to expire on Jan. 19, 2015 and now will run through Jan. 19, 2017.  The contract extension took effect this week after it was approved by the State Administrative Board.

“The Michigan Lottery games supported by GTECH’s products and services are very popular with our players and provide a significant share of the revenue that we contribute each year to the state School Aid Fund,” said Jeff Holyfield, the Lottery’s director of public relations.

“This contract extension recognizes that GTECH and its team have proven they share our commitment to provide excellent service to our players and the 11,000 retailers that sell Michigan Lottery products across the state. It also provides value to the Lottery and the state by extending for two years the competitive pricing structure put in place in 2008 for these popular products and services.”

Under the terms of the contract, the bulk of GTECH’s compensation is based on a percentage of sales. The contract extension has an estimated annual value of $53.3 million.

The Lottery contributed $734.3 million to the School Aid Fund in fiscal year 2013.  That works out to about $465 for each of the 1.58 million pupils in the state’s kindergarten-through-12th grade system.

That marked the seventh year in a row that the Lottery contributed more than $700 million to the School Aid Fund.  The Lottery has contributed nearly $5.2 billion to support education during that seven-year period. 

About 97 cents of every dollar spent on Lottery tickets is returned to the state in the form of contributions to the state School Aid Fund, prizes to players and commissions to retailers. Since it began in 1972, the Lottery has contributed more than $18 billion to education in Michigan.

GTECH, a leader in the worldwide gaming markets, has provided products and services for the Michigan Lottery since 1988.

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