Welcome Guest
Log In | Register )
You last visited December 4, 2016, 7:09 am
All times shown are
Eastern Time (GMT-5:00)

N.M. Lottery approves raffle, ends game, and hires new vendor

New Mexico LotteryNew Mexico Lottery: N.M. Lottery approves raffle, ends game, and hires new vendor

The New Mexico Lottery's board of directors was busy yesterday, approving a new raffle-style game for later this year, canceling the unique "4 this way" 4-digit game, and ending an 11-year relationship with its current equipment and services vendor.

Finishing a two-year process to analyze its business needs, identify revenue growth opportunities and evaluate vendor capabilities, the New Mexico Lottery yesterday selected Intralot to provide a computerized gaming system, communications network and ticket sales terminals to support 1,100 lottery retailers statewide.

In a unanimous decision, the lottery's board of directors approved Intralot as the lowest bidder and apparent successful vendor, allowing final contract negotiations to begin.

GTECH Corp., which is now a subsidiary of Italy's Lottomatica SpA, was originally awarded the lottery's contract in 1996.  The new vendor will have a 7-year contract.

In its best and final offer, Intralot proposed a base price of 1.50 percent of total net sales for each year of the seven-year contract.

Intralot's base price includes new retail terminals and related peripheral equipment as well as communications links to connect the terminals to the system's central site, which would be located in Boise, Idaho.

In Fiscal Year 2007, ending June 30, total net lottery sales were approximately $148 million.

The lottery pays its current gaming system vendor approximately 8.5 percent of annual online ticket sales. The lottery also pays an average $1.4 million a year in retail terminal and communications network fees. The lottery's current contract expires in November 2008.

When compared to the current contract's terms, Lottery CEO Tom Romero said Intralot's proposed rate is projected to result in a savings of $35.4 million over the life of a seven-year contract.

"The rate achieved as a result of this two-year procurement process will help us build a stronger foundation for the future of the Lottery, our state and our beneficiaries," Romero said. "The reduced rate will allow us to return more revenue to the Legislative Lottery Scholarship fund. The new equipment will enhance our communication with players and allow them to check their own tickets for any prizes. The central computer system will support our strategic planning process and provide the tools necessary to help us make more informed decisions in how we manage products, expand retail distribution and increase revenues."

The new system would cut over in November 2008, following a yearlong conversion and testing process that will begin after final contract terms are negotiated and both parties sign the contract.

The New Mexico Lottery would become Intralot's fourth lottery customer in the United States.

Intralot, Inc., of Duluth, Ga., has contracts with the Idaho Lottery at 1.98 percent of total sales, the Nebraska Lottery at 2.39 percent of online sales, and the Montana Lottery at 5.8 percent of net online sales and instant ticket activations.

Lottery Board Approves Raffle Games

In other business, the board of directors authorized the lottery staff to develop a raffle-style game to be launched later in the year. The game will consist of a fixed number of tickets to be sold in numeric order until they are sold out or the drawing is held.

Tickets are expected to be priced at $10 each.

A computerized drawing will randomly select winners.

Details on the first raffle game, including its name, ticket prices and prizes will be announced in the coming weeks.  The lottery anticipates holding the first raffle drawing on New Year's Eve.

Unique 4-digit game canceled 

The New Mexico Lottery board authorized the lottery to discontinue the "4 This Way" game by the end of the year.

Romero said ticket sales for the game have declined since it was launched in 2004, and the raffle game should generate more revenue.

Lottery Post Staff

We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

6 comments. Last comment 9 years ago by Toney725.
Page 1 of 1
LOTTOMIKE's avatar - cash money.jpg
Tennessee
United States
Member #7853
October 15, 2004
11338 Posts
Offline
Posted: July 27, 2007, 8:54 pm - IP Logged

stupidity to drop it.this was a cool game.

    MADDOG10's avatar - smoke
    Beautiful Florida
    United States
    Member #5709
    July 18, 2004
    20108 Posts
    Offline
    Posted: July 27, 2007, 9:20 pm - IP Logged

    stupidity to drop it.this was a cool game.

    I totally agree mike.........

    All of this to save 5 million a year over a seven year period. I'm hopeing they lose double that for switching and cancelling...

                                                 

                                                   "  When Injustice Becomes Law, Resistance Becomes Duty "

      Todd's avatar - Cylon 2.gif
      Chief Bottle Washer
      New Jersey
      United States
      Member #1
      May 31, 2000
      23260 Posts
      Offline
      Posted: July 27, 2007, 9:39 pm - IP Logged

      I Agree!  I liked 4 This Way.  A very nice combination of Pick 4 play + great odds of winning a prize.  Sad to see it go.

       

      Check the State Lottery Report Card
      What grade did your lottery earn?

       

      Sign the Petition for True Lottery Drawings
      Help eliminate computerized drawings!

        Avatar

        United States
        Member #10720
        January 23, 2005
        933 Posts
        Offline
        Posted: July 27, 2007, 9:49 pm - IP Logged

        I never saw a Pick-4 game done that way. Are they replacing it with a regular pick-4 game? I'd be very angry if nj dropped the 4 because I win prizes more often on the 4 (box). The STR should offer side prizes for getting some of the digits. When the Lottery changes a lot of things like that it messes up my algorithms.

          Todd's avatar - Cylon 2.gif
          Chief Bottle Washer
          New Jersey
          United States
          Member #1
          May 31, 2000
          23260 Posts
          Offline
          Posted: July 28, 2007, 1:02 am - IP Logged

          I never saw a Pick-4 game done that way. Are they replacing it with a regular pick-4 game? I'd be very angry if nj dropped the 4 because I win prizes more often on the 4 (box). The STR should offer side prizes for getting some of the digits. When the Lottery changes a lot of things like that it messes up my algorithms.

          They are not replacing it with another P4 game.  It is being "replaced" by the new raffle, which doesn't make much sense to me.

           

          Check the State Lottery Report Card
          What grade did your lottery earn?

           

          Sign the Petition for True Lottery Drawings
          Help eliminate computerized drawings!

            Toney725's avatar - speedykat
            Stone Mountain, GA
            United States
            Member #3189
            January 1, 2004
            28233 Posts
            Offline
            Posted: July 30, 2007, 1:55 pm - IP Logged

            I was looking forward to playing it when I went out there next year.  Drats! Unhappy