eginning in March 1st 2010, the initial term of the contract is for seven years with a possible three year extension. The new contract takes over from an existing contract which expires on February 28th 2010, and will reduce the New York Lottery's systems and telecommunications costs by us$ 31 million annually to approximately us$ 73 million.
The new agreement will allow the New York Lottery to introduce a completely new generation of technology with faster, easier to use touch-screen terminals, and a more reliable telecommunications network. It will also provide higher levels of security and redundancy, and the capacity to handle the extremely high levels of transaction volumes generated daily by the Lottery.
Under the agreement, Gtech will provide all capital necessary to purchase and install the new equipment, and will be paid primarily on a percentage-of-sales basis.
Gordon Medenica, Director of the New York Lottery said: "The Lottery is a 24 hour-a-day, seven-day-a-week business. We process over 5.5 billion transactions a year, transactions that must be secure, impenetrable and 100 percent accurate. Our system needs to be reliable and extremely high performing. We average almost $20 million a day in sales, and the cost of even the slightest system downtime is enormous."
Gtech President and CEO Jaymin B. Patel said: "We are honoured to have the largest lottery in North America and one of the most respected in the world, the New York Lottery, remain as our valued customer. Lotteries from around the world look to the New York Lottery as a model for balanced and sustainable growth. As the Lottery's online vendor, Gtech will continue delivering the maximum player experience, integrity, security and profitability."