IGT Delivers Upgraded Lottery Solutions to North Carolina Education Lottery with 10-Year Contract Extension

Rhea-AI Summary

IGT Global Solutions , a subsidiary of International Game Technology PLC (NYSE: IGT), has signed a 10-year contract extension with the North Carolina Education Lottery (NCEL). The extension will run from July 1, 2027, through June 2037. IGT will deploy its Aurora™ central system, a component of its integrated lottery solution, OMNIA™. The agreement includes:

• Upgraded Wizard back-office business applications
• Up to 8,500 new Retailer Pro S2 terminals
• 500 GameTouch™ 28 self-service vending machines
• 2,000 lottery play centers
• 4,000 Jackpot signs
• A dual cellular communication network
• Expanded testing capabilities

The NCEL, among the top 10 most successful lotteries in the U.S., has been an IGT customer since 2006 and now raises over $1 billion annually for public education in North Carolina.

Positive

• 10-year contract extension with North Carolina Education Lottery
• Deployment of advanced Aurora™ central system and OMNIA™ integrated lottery solution
• Provision of up to 8,500 new Retailer Pro S2 terminals and 500 GameTouch™ 28 self-service vending machines
• Strengthening of long-term relationship with a top 10 U.S. lottery
• Potential for increased sales and contributions to North Carolina education

Negative

• None.

Insights

Lottery Industry Analyst

This contract extension is a significant win for IGT, solidifying its position in the North Carolina market for another decade. The deal encompasses a comprehensive upgrade of lottery systems, including the deployment of IGT's Aurora central system and OMNIA integrated solution. These technological advancements are likely to enhance operational efficiency and potentially boost sales for the North Carolina Education Lottery.

The extension with a top 10 U.S. lottery is particularly noteworthy, as it demonstrates IGT's ability to retain and grow relationships with major clients. The provision of up to 8,500 new Retailer Pro S2 terminals and 500 GameTouch 28 self-service vending machines represents a substantial hardware deployment that should contribute to IGT's revenue stream over the contract period.

For investors, this deal underscores IGT's strong market position and its capacity to secure long-term, high-value contracts in the lottery sector. The 10-year duration provides revenue visibility and stability, which is typically viewed favorably by the market. However, the financial terms of the deal are not disclosed, making it challenging to quantify the exact impact on IGT's future earnings.

Financial Analyst

While the financial details of this contract extension are not disclosed, it's a positive development for IGT's long-term revenue stability. The 10-year duration, starting from 2027, provides a solid foundation for future earnings projections. Investors should note that IGT's ability to secure such lengthy contracts with major lotteries reduces business risk and enhances predictability of cash flows.

The comprehensive nature of the deal, including hardware, software and network infrastructure, suggests a significant contract value. The North Carolina Education Lottery's annual contribution of over $1 billion to the state indicates a substantial operation, implying that this contract could represent a material portion of IGT's future revenue.

From a market perspective, this extension reinforces IGT's dominant position in the U.S. lottery market, serving 26 out of 46 state lotteries. This market leadership should be viewed favorably by investors, as it demonstrates IGT's competitive advantage and potential for sustained growth in the lottery sector.

LONDON, Oct. 3, 2024 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE: IGT) announced today that its subsidiary, IGT Global Solutions Corporation, signed a 10-year contract extension with the North Carolina Education Lottery ("NCEL"). The contract extension will begin July 1, 2027, and run through June 2037. The NCEL has been a valued IGT customer since the Lottery began in 2006.

Under the terms of the agreement, IGT will deploy its high-performing Aurora™ central system, a feature component of IGT's integrated lottery solution, OMNIA™. Additionally, IGT will provide upgraded Wizard back-office business applications, up to 8,500 newly launched Retailer Pro S2 terminals, 500 GameTouch™ 28 self-service vending machines, 2,000 lottery play centers, 4,000 Jackpot signs, a dual cellular communication network, and expanded testing capabilities for the NCEL.

"IGT has been a trusted partner to the NCEL for more than 18 years, supporting our consistent growth and record-breaking sales," said Mark Michalko, Chief Executive Officer and Executive Director of the N.C. Education Lottery. "Supporting public education is our mission, and we now raise more than $1 billion a year for our state. We look forward to extending our strong relationship with IGT. The new technology that IGT will provide will help the lottery continue to responsibly increase sales and our contributions to North Carolina."

"The NCEL is among the top 10 most successful lotteries in the U.S., and IGT is excited to upgrade its retail technology with our high-performing solutions, and help it drive sales growth," said Jay Gendron, IGT Chief Operating Officer Global Lottery. "IGT's future-forward technology will provide the systems and equipment needed for the NCEL to work effectively and efficiently for its players, its retail partners, and the good causes it serves."

IGT's Aurora platform and related components were developed to drive lottery innovation and profitability. This technology will provide the NCEL with intuitive, user-friendly applications, tools, and reporting capabilities. Components of Aurora, including Performance Wizard, Sales Wizard, Learning Wizard, and Retailer Wizard will streamline operations for optimal functionality. The introduction of IGT's high-performance, high-volume Retailer Pro S2 terminals will enable the NCEL to easily add new features across multiple point-of-sale terminals simultaneously.

As the global lottery market leader, IGT is the primary technology provider to 26 of the 46 lotteries in the U.S., eight of the world's largest 10 lotteries and 16 of the world's top 25 lotteries. For more information, visit IGT.com and follow us on  LinkedIn.

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 11,000 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, products and services, customer relationships, 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, 2023 and other documents led 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 U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452
Matteo Selva, Italian media inquiries, +39 366 6803635
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.

 

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SOURCE International Game Technology PLC

FAQ

What is the duration of IGT's contract extension with the North Carolina Education Lottery?

IGT's contract extension with the North Carolina Education Lottery is for 10 years, running from July 1, 2027, through June 2037.

What new technology will IGT provide to the North Carolina Education Lottery (NCEL)?

IGT will provide the Aurora™ central system, upgraded Wizard back-office applications, new Retailer Pro S2 terminals, GameTouch™ 28 self-service vending machines, lottery play centers, Jackpot signs, and a dual cellular communication network.

How much does the North Carolina Education Lottery (NCEL) raise annually for education?

According to the press release, the North Carolina Education Lottery now raises more than $1 billion annually for public education in the state.

What is IGT's market position in the global lottery industry?

IGT is the global lottery market leader, serving as the primary technology provider to 26 of the 46 lotteries in the U.S., eight of the world's largest 10 lotteries, and 16 of the world's top 25 lotteries.