reviously, the Lottery had announced its intent to award the contract to Gtech and had entered into negotiations with the company. During the negotiations, the firm proposed its Altura terminal as an alternative to the Imagine terminal that was included in the original proposal. The formal market launch of the Imagine terminal has been delayed. It will now enter into production in late 2008 which would not meet the implementation schedule of the Lottery.
Although the Altura meets the requirements of the Lottery’s Request for Proposal (RFP), it was not proposed and therefore not evaluated as part of the process. For this reason, the Lottery decided to seek BAFOs from the bidders.
Commenting on the matter, Gtech CEO Jaymin B. Patel said, “We are awaiting further instructions on the BAFO process and look forward to responding. The delayed launch of the Imagine terminal is unfortunate but necessary. The Imagine terminal has been under development for the past three years, and the Company is confident that it will become the standard for the next generation of terminal technology.”
“Gtech has a family of terminals that is field proven, highly reliable, and sets the standard in lottery ticket sales around the world,” continued Patel. ”We have every expectation of successfully meeting the Lottery’s requirements in Pennsylvania.”
The delay in the launch of the Imagine impacts a limited number of customers with whom Gtech has been successfully developing alternatives. The company does not anticipate that the delayed launch will have any material financial impact on its long term outlook.