IGT Signs 12-Year Contract Extension with UAB Perlas Network in Lithuania to Deploy Upgraded Central System Software
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Insights
The extension of IGT's contract with UAB Perlas Network is a significant development with broad implications for the company's market stability and potential revenue streams. A 12-year contract extension in the technology and gaming sector is a substantial commitment, indicating a strong client-provider relationship and trust in IGT's capacity to enhance lottery operations. The longevity of this partnership, dating back to 1994, demonstrates IGT's ability to retain key accounts, which is essential in an industry where long-term contracts are a primary revenue source.
IGT's role as a primary technology provider to a substantial portion of the world's largest lotteries underscores its market dominance. This extension may further solidify IGT's position and could serve as a testament to its reliability and innovation in the field. The introduction of advanced software and user interfaces is likely to improve the user experience and could result in increased engagement and sales, which is crucial in a competitive market where digital transformation is key.
From a financial perspective, this contract extension is poised to provide IGT with a predictable and stable cash flow over an extended period. The deal not only secures revenue until 2035 but also reflects positively on IGT's financial forecasts and stability. Investors and stakeholders typically view such long-term agreements as positive indicators of a company's future performance and sustainability.
IGT's announcement of technology enhancements, including an administration portal for back-office management, suggests a move towards increased operational efficiency. By improving efficiencies and maximizing profitability for its clients, IGT may also be able to leverage these improvements to enhance its own profit margins over time. The ongoing deployment of eInstant games and cloud-based servers further indicates IGT's investment in innovation, which can be a catalyst for growth in the digital lottery space.
The technological advancements that IGT is set to provide UAB Perlas Network, particularly the upgrades to the Lottery's central retail system, reflect the ongoing digital transformation within the gaming and lottery industry. The implementation of advanced software solutions and user interfaces is expected to streamline operations and provide a more engaging experience for end-users. Additionally, the administration portal for managing applications and back-office functions is indicative of a trend towards centralized, integrated systems that can yield significant operational benefits.
IGT's strategic focus on technology leadership and experience in the lottery industry is evident in its ability to secure such a long-term contract. The company's investment in cloud-based remote game servers and eInstant games aligns with the broader industry's shift towards online platforms and services. This shift is critical for maintaining competitiveness in an increasingly digital world and is likely to influence IGT's product development and market offerings in the coming years.
"Upgrading Perlas' central system with IGT technology will help us optimize and elevate the country's most popular and exciting lottery games," said Mindaugas Marcinkevičius, UAB Perlas Network CEO. "We look forward to implementing IGT's upgrades and are pleased to continue this successful relationship for another 12 years."
"The technology enhancements being provided to Perlas are backed by IGT's decades of lottery industry leadership and experience," said Jay Gendron, IGT Chief Operating Officer Global Lottery. "This upgraded technology will introduce an administration portal that will enable the Lottery to view and manage all applications and back-office functions, helping to improve efficiencies and maximize profitability."
The Lottery has been a customer of IGT's since 1994. In 2023, IGT announced that it signed a contract with Euloto UAB (Perlas' dependent company) to deploy its advanced cloud-based remote game server and at least 12 eInstant games per year.
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.
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FAQ
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