GTech Holdings Corp., the Rhode Island lottery technology giant, has lost the contract for the online portion of the Nebraska Lottery, cutting two-thirds of the companys business with the Nebraska Lottery, the company announced today.

The state of Nebraska has selected another vendor to provide equipment and services for a new online lottery gaming system and associated telecommunications network, GTech officials said in a news release.

GTech has run the Nebraska Lottery's online games since 1994. The companys current online contract with the Nebraska Lottery is set to expire on June 30, 2004.

GTech will remain as the Nebraska Lottery's instant-ticket products and system supplier through June 30, 2008. The Nebraska Lottery is a $6 million piece of business annually for GTech, of which $4 million is derived from the online lottery contract.

GTech counts $1 billion in revenues and employs 4,200 people in 43 countries. The company provides software, networks, and professional services that power transaction processing solutions. The companys core market is the lottery industry, with a growing presence in financial services transaction processing.

Shares of GTech (GTK:NYSE) opened at $38.26, down from yesterdays close of $38.57.