Scientific Games wins Pennsylvania Lottery contract

Apr 30, 2008, 9:39 am (8 comments)

Scientific Games

Secretary of Revenue Tom Wolf today announced that after reviewing best and final offers, the department has selected Scientific Games International Inc. to supply terminal-based game services to the Pennsylvania Lottery.

Scientific Games, based in Alpharetta, Ga., was chosen following an open and competitive procurement process. Wolf said a committee comprised of employees from the Department of Revenue and the PA Lottery began evaluating vendor proposals in July.

In January, Wolf announced that the department had selected GTECH Corp., based in Providence, R.I., to enter into contract negotiations to provide the terminal-based lottery game services. In March, after GTECH Corp. advised the department of a change in the equipment presented in its proposal, Wolf announced that Revenue had suspended contract negotiations and was soliciting best and final offers from the two companies that submitted proposals in response to the Lottery's request for proposals for gaming system and related services.

After reviewing the best and final offers, the committee scored Scientific Games' proposal highest overall based on its technical expertise, minority participation and cost.

Wolf said the department will immediately begin negotiations with Scientific Games on a five-year contract, with up to five, one-year extensions.

The terms of the contract will not be determined until it is finalized, but Wolf said the cost will be significantly less per year compared to the commonwealth's existing contract. Wolf said Scientific Games will be paid a percentage of the Lottery's ticket sales. The contract will go into effect on Jan. 1, 2009.

Services provided by Scientific Games under the new contract will include:

  • Replacing the communications network and terminals at all Lottery retail locations. The new terminals will feature touch-screen technology and online support for retailers and they will also allow players to check their own tickets to see if they have won.
  • Training retailers to use the equipment; installing and maintaining the new system and terminals; managing the retailer call center and other retailer-support services.
  • Supporting new game development and other marketing initiatives.

Scientific Games currently provides terminal-based lottery services to the PA Lottery, but that contract will expire on Dec. 31. The company was paid approximately $50 million for fiscal year 2006-07 based on Lottery sales of $3.076 billion.

Lottery Post Staff

Comments

TheGameGrl's avatarTheGameGrl

Interesting article. Comes as no surprise that the cheapest would fair out in the PA Lottery. Let me rephrase that, perhaps not cheapest so much as most beneficial to upping the revenue retained and lessening the payouts to players by changing the provider and the game plans. Look for more numbers in Powerball and our good ole PA Match 6 and Cash 5 game. It will change and it wont be to keep current players but to thwart them away with the odds increasing.

I can guarantee that the glitches in the terminals will no doubt frustrate both players and the stores who maintain the machines. This is one time where changing the system may harm the system.

murph1226

They [Scientific Games] don't have control over powerball numbers that is a MUSL game.  And it's the final decision of the state lottery what the structure of the game is not Scientific games.  I don't think it will change your games, I think there will be confusion the first few weeks with untrained clerks and players that don't understand new playslips if there are new ones.  It's a transition that has to happen seamlessly and that may not happen, could be a few bumps in the road.  That's what I would be more concerned about. 

Guru101's avatarGuru101

Quote: Originally posted by murph1226 on May 1, 2008

They [Scientific Games] don't have control over powerball numbers that is a MUSL game.  And it's the final decision of the state lottery what the structure of the game is not Scientific games.  I don't think it will change your games, I think there will be confusion the first few weeks with untrained clerks and players that don't understand new playslips if there are new ones.  It's a transition that has to happen seamlessly and that may not happen, could be a few bumps in the road.  That's what I would be more concerned about. 

They [Scientific Games] don't have control over powerball numbers that is a MUSL game.

Oooooooooooooooooook.Roll Eyes

murph1226

Quote: Originally posted by Guru101 on May 1, 2008

They [Scientific Games] don't have control over powerball numbers that is a MUSL game.

Oooooooooooooooooook.Roll Eyes

Is that sarcasm?  Hard to tell reading.  But really since Powerball is a Multi State game the MUSL organization decides what happens with the game.  There also has to be some agreement between all the states that participate. 

Todd's avatarTodd

I would personally prefer that they take the extra cost savings and use it to fund real mechanical ball drawings for the midday games.

TheGameGrl's avatarTheGameGrl

Great suggestion Todd! I second that idea!

I do agree that a smooth transistion over would be the best one could ask. I still stand unwavered that the PA Lottery will find a way to change the matrix on some of the games in order to retain more profits for them and less for the players. That was there goal in gaining Scientific.

Change might be inevitable but I prefer Dollars in the end *wink*

benmas's avatarbenmas

they have already made the changes they wanted for their jackpot games in PA...

my only fear is that they will change to a parimutuel formula for the pick 3 and pick 4 game payouts similar to what NJ has in place....then if triple 7s comes up again (or any other popularly played #s)instead of a fixed $500 for a dollar play, people will get something like $279...this is my only concern as far as changes in PA go...and i seriously doubt they will bring back the balls for midday...other than that i think SG its ok...it will improve some issues with the old terminals..

JimmySand9

Quote: Originally posted by benmas on May 2, 2008

they have already made the changes they wanted for their jackpot games in PA...

my only fear is that they will change to a parimutuel formula for the pick 3 and pick 4 game payouts similar to what NJ has in place....then if triple 7s comes up again (or any other popularly played #s)instead of a fixed $500 for a dollar play, people will get something like $279...this is my only concern as far as changes in PA go...and i seriously doubt they will bring back the balls for midday...other than that i think SG its ok...it will improve some issues with the old terminals..

Don't count on pari-mutuel payouts for Daily Number. It is very uncommon for states to do that, and with all the people who have played that game for so long, any change like that will really get some backlash.

End of comments
Subscribe to this news story