GTECH signs new five-year private operator contract

The concession contract will start in April 2012 and is estimated to generate revenues for GTECH of approximately US$ 55 million over the five-year term. 

The private operator contract was awarded after a public bidding process during the first semester of 2011. Under this new concession contract, GTECH will continue operating the ONLINE LOTO – BALOTO game and will transfer 32.32% of all sales back to the Colombian health sector. GTECH will also extend its point-of-sale network to 10,000 and plans to include new innovations to the Baloto game in order to invigorate growth and to increase its impact.

In addition to the sale of Baloto, GTECH’s point-of-sale terminals will continue to offer a full complement of transaction-processing services (through its brand VIA™) that include cellular phone top-ups, bill payments, and money transfers with the prior negotiation carried out with the LICENSOR entity. 

“The award of this new private operator contract is evidence of GTECH’s continued ability to successfully manage all aspects of the online lottery operations for governments who choose to outsource these responsibilities,” said GTECH President and CEO Jaymin B. Patel.

“Over 10 years ago, GTECH was a pioneer in working with the Colombian government to help bring international standards of transparency and accountability to the Colombian gaming market. We are proud of our extensive footprint in the Latin American and Caribbean marketplace that we have developed over the last 25 years, and this award reinforces GTECH’s market leadership in this region.”

GTECH was initially awarded a 10-year concession contract to bring the Baloto game to Colombian online lottery players in December 1999. The first Baloto draw was held just over a year later in January 2001 and the game was an instant success. Since 2001, GTECH has generated 20,000 direct and indirect jobs and has transferred more than US$ 264 million to ETESA for Colombia’s health sector. GTECH has sold over US$ 843 million in tickets and delivered approximately US$ 422 million in prizes to over eight million winners.

“We are pleased to have been named the winner of this extremely competitive process,” said GTECH Colombia President Alvaro Gomez. “We look forward to furthering our partnership with the Colombian government to responsibly manage their lottery operations and generate revenue for important good causes. This new contract brings us one step closer to building a modern and efficient gaming industry in Colombia, which helps fund health care for all Colombians.”