IGT Delivers Enhanced Solutions to Virginia Lottery
- None.
- None.
Insights
The extension of IGT's contract with the Virginia Lottery signifies a substantial commitment to long-term collaboration between the two entities, indicating a stable revenue stream for IGT over the next decade. The integration of new technology such as the Aurora™ system and Retailer Pro S2 terminals positions IGT at the forefront of lottery innovation, potentially increasing the efficiency of lottery operations. This modernization could attract a broader customer base, thereby increasing lottery sales and, consequently, IGT's revenue from this sector.
The upgrade to a cellular communications network suggests a move towards more secure and reliable data transmission between terminals and the central system, which is crucial for real-time processing and jackpot updates. This could enhance the trust and satisfaction of players, leading to increased participation. The introduction of progressive jackpot features in Print 'n Play games is likely to provide an additional incentive for player engagement, possibly resulting in higher sales volumes for the Virginia Lottery.
Investors should consider the implications of this contract extension on IGT's financial health. The deal not only secures a predictable revenue until at least 2033 but also opens the possibility for further extensions. This can be seen as a positive indicator of IGT's financial stability and growth prospects. Moreover, the capital expenditure associated with upgrading systems and replacing terminals is an investment in future sales capability, which could improve profit margins over time due to increased operational efficiency and potentially higher transaction volumes.
It is also important to note that the lottery sector often provides a resilient revenue stream, as it tends to be less sensitive to economic downturns compared to other discretionary spending. Therefore, a long-term contract in this sector could provide a buffer for IGT's earnings against economic volatility.
The deployment of IGT's OMNIA™ lottery solution, including the Aurora™ system, marks a significant technological advancement in the lottery industry. The Retailer Pro S2 terminals represent a leap in hardware capabilities, offering high performance and volume processing. This technological upgrade is indicative of the lottery industry's trend towards digital transformation, aiming to enhance operational agility and customer experience.
IGT's position as a leading technology provider to a significant portion of the world's largest lotteries underscores its competitive edge in the market. The upgrade and extension of services with the Virginia Lottery can serve as a case study for other lotteries worldwide, potentially leading to more contracts for IGT, thus expanding their global footprint and influence in the lottery technology market.
Company to upgrade central lottery system, replace 5,500 retail point-of-sale terminals and upgrade communications network to cellular
"Since first partnering with the Virginia Lottery in 2000, IGT has helped us responsibly modernize our lottery offerings and drive sales growth for our business," said Tony R. Russell, Virginia Lottery Interim Director. "We look forward to IGT's enhancements to our system and point-of-sale technology that will ultimately support our mission to generate revenue for Virginia's K-12 public education."
"IGT has worked closely with the Virginia Lottery for more than 20 years to deliver world-class, innovative lottery solutions and services," said Jay Gendron, IGT Chief Operating Officer, Global Lottery. "The upgraded technology being deployed for the Virginia Lottery as part of our latest extension will offer increased flexibility for the Lottery to easily manage its back-end operations. Additionally, the introduction of a progressive jackpot feature to the Lottery's Print 'n Play games will provide players with engaging new experiences."
Under the terms of the contract extension, IGT will upgrade the Virginia Lottery's central retail system to its newest version of Aurora™, part of IGT's OMNIA™ lottery solution. IGT also will replace 5,500 retailer terminals with its high-performance, high-volume terminal, the Retailer Pro S2, enabling the Lottery to easily add new features across multiple point-of-sale terminals simultaneously. IGT has been the primary lottery technology partner to the Virginia Lottery since 2000 and its primary instant ticket provider since 2020.
As the global lottery market leader, IGT is the primary technology provider to 25 lotteries in the
About IGT
IGT (NYSE:IGT) is a global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Lotteries and Gaming Machines to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivaled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 jurisdictions around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 10,500 employees. For more information, please visit www.igt.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall," "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2022 and other documents filed from time to time with the SEC, which are available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company's business. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.
Contact:
Phil O'Shaughnessy, Global Communications, toll free in
Francesco Luti, Italian media inquiries, +39 06 5189 9184
James Hurley, Investor Relations, +1 (401) 392-7190
© 2024 IGT
The trademarks and/or service marks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors.
View original content to download multimedia:https://www.prnewswire.com/news-releases/igt-delivers-enhanced-solutions-to-virginia-lottery-302039645.html
SOURCE International Game Technology PLC
FAQ
What is the duration of the contract extension between IGT and the Virginia Lottery?
What will IGT provide to the Virginia Lottery as part of the contract extension?
How long has IGT been the primary lottery technology partner to the Virginia Lottery?
How many lotteries in the U.S. does IGT serve as the primary technology provider?
What is the primary aim of the upgrade for the Virginia Lottery?
