GTECH Holdings Corporation (NYSE: GTK) yesterday announced that its wholly-owned subsidiary, GTECH Corporation, has been selected by the Florida Lottery as the apparent successful bidder to supply a new online and instant-ticket lottery system, lottery terminals, and related telecommunications network. The proposed six- year integrated services contract is expected to commence on February 1, 2005, and includes two two-year extension options. This decision by the Florida Lottery is the result of a public, competitive procurement.
"We are pleased to be selected by one of the premier lotteries in the world," said GTECH President and CEO W. Bruce Turner. "This is a significant milestone as we have successfully completed a 36-month period of retaining our largest existing business contracts and we now turn our undivided attention to the growth of new customers in new markets.
This is also an important milestone in our Enterprise Series market strategy and creates a long-term partnership with Florida's progressive and leading-edge reputation for player excitement and retailer satisfaction," continued Mr. Turner.
The Request for Proposals calls for the replacement of the Florida Lottery's existing system with new central system hardware and software. Upon successful completion of contract negotiations, GTECH will replace the Florida Lottery's current system with GTECH Enterprise Series(TM) architecture, featuring Internet Protocol (IP) and standards-based open architecture. GTECH will also replace the Lottery's current terminal equipment with approximately 12,000 Altura(R) terminals and has offered to supply up to 2,000 Lottery Inside(TM) retail point-of-sale (POS) solutions to provide state-of-the-art retailer and player convenience. Lottery Inside will also allow the Florida Lottery to expand its distribution channels by 16 percent by dmbedding lottery functionality in existing retailer POS hardware.
"Our fully integrated solution will help the Florida Lottery improve its current business processes and provide the highest level of reliability, security, and integrity," said Mr. Turner. "GTECH Enterprise Series and Lottery Inside will enable the Lottery to expand its product distribution and
facilitate the future growth of its retailer network."
In addition, GTECH will install and maintain a state-of-the-art, IP-based wireless communications system, which provides highly secure and reliable communication between a central hub and lottery retailers. GTECH will provide ongoing services to the Florida Lottery including system design, delivery, and ongoing support operations; terminal installation and maintenance; retailer training; hotline management; and telecommunications network management and maintenance. The Company will maintain a data center at Florida Lottery headquarters in Tallahassee and a backup data center in Orlando.
GTECH, a leading global information technology company with $1 billion in revenues and 4,200 people in 43 countries, provides software, networks, and professional services that power high-performance, transaction processing solutions. The Company's core market is the lottery industry, with a growing presence in financial services transaction processing.