he amendment began July 2009 and will run for the remainder of the lottery systems contract through 2012, with options to extend for two additional two-year increments.
The company will handle the manufacturing and distribution of instant tickets throughout Puerto Rico, including shipping, warehousing, telemarketing, distribution and will advise on game design and marketing issues as well as support on retail network optimization and expansion. Revenues to Scientific Games for this contract will be based on a percentage of total lottery sales (for online and instant ticket combined).
Loteria Electronica currently operates one of two lotteries in Puerto Rico, spanning a population of 4 million people and approximately 1,850 retailers. Being that this is the first major foray into instant tickets in Puerto Rico, in addition to the Loteria Electronica retailers, Scientific Games will also have the ability to distribute instant tickets to the 15,000 Loteria de Puerto Rico street vendors.
"This is a very important opportunity for Puerto Rico and we are thrilled to be a part of it," said Mike Chambrello, President and COO of Scientific Games. "We see tremendous potential for growing Puerto Rico's instant ticket sales by utilizing the experience, service and working knowledge that Scientific Games has implemented over the years. We are also pleased by Loteria Electronica's vote of confidence in offering two additional two-year extension options on the contract, which includes both our lottery systems and instant ticket services."
In fiscal year 2009, Loteria Electronica generated us$ 421 million in lottery system sales and returned us$ 152 million for good causes.