IGT Pens Decade-Long Contract Extension with Michigan Lottery

Staff Writer Industry News, IGT 966

IGT Global Solutions Corporation, the subsidiary of International Game Technology PLC, has signed a ten-year contract extension with the Michigan Lottery.

Being one of the most successful lotteries in the United States since its inception in 1988, Michigan Lottery constantly raises the bar with record sales and community contributions to Michigan School Aid funds.

The extension of the deal with IGT will provide the needed support in terms of new lottery technology and ongoing services for managing and growing their business in the years ahead.

Terms of Agreement

Under the terms of the agreement extension, IGT will provide the Michigan Lottery with innovative tools from IGT’S Aurora platform including Aurora Navigator and also several Biz App lottery applications such as Performance Wizard, Retailer Wizard, Order Wizard and Instant Tracking Wizard through January 2031.

Retailer Pro terminals will replace the 11,550 existing lottery terminals and Win Check tickets will allow players to easily check if their tickets are winners. The Michigan Lottery will also receive 2,100 Game Touch™ self-service touch-screen lottery vending machines. All these upgrades should help Lottery drive profitable growth.

IGT will continue to provide services and maintain the new central system and terminals from its primary data center in Lansing, Michigan. In addition, it will also provide backup data center services from its data center of the American facility located in Austin, Texas.

IGT Hit by Revenue Decrease

Due to the sale of Double Down social casino subsidiary, IGT’s quarter 2 revenue decreased by 1% year-on-year to $1.2 billion.

Operating income grew 9% to $209 million while EBIDTA increased by 4% to $442 million. With the sale of Double Down and jackpot expenses, net debt went up 8% to $7.5 million. The North American lottery segment saw a 5% revenue increase, however, rising to $270 million which was higher than predicted.

Marco Sala, CEO of IGT explained that the strong second quarter reflects the global lottery expansion with the focus on disciplined expense management.

“The North America Gaming installed base grew sequentially and we have a compelling roster of new, for-sale video reel games coming to market in the second half. The strong start to the year gives us confidence we can achieve our 2018 strategic and financial goals.”

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