Lottomatica says has lost Pennsylvania lottery contract bid to rival

In March, the Pennsylvania lottery launched an examination of an earlier decision in January to award the contract to Gtech, subject to negotiation, because of changes in the firm to its terminal offering. "Gtech has been informed by the Pennsylvania lottery that the lottery intends to award to its present supplier the contract for the online and instantaneous lotteries," Lottomatica said. Reports say the winner is Scientific Games.

In its statement Saturday, Lottomatica said there had been only two bidders in the contest and the rival had originally been defeated before being given the opportunity to re-present its offer. Gtech will examine if the company’s rights have been violated and if it will launch any legal action, it said.

Previously, Lottomatica said Pennsylvania’s second thoughts on its January decision were due to unexpected delays in the Imagine terminal product and the offering of the Altura terminal instead. Saturday, the company said the five-year contract would have been worth 15 million to 18 million euro a year starting from 2009, and investments for 40 million were planned in 2008.

Lottomatica said it reiterated its earnings guidance given in early April during its 2008-2010 business plan presentation.