International Game Technology PLC has announced a seven-year extension to its lottery deal with the California Lottery.
The contract extension will see IGT’s subsidiary, IGT Global Solutions Corporation, continue to be Cali Lottery’s primary lottery technology provider. The new deal will see it run through October 2023, and also features five additional one-year extension options.
Through the new-look deal, California Lottery’s platform will be upgraded to IGT’s newest, cloud-based solution. The business-to-business provider will also move several pivotal central functions to the cloud, allowing for “enhanced flexibility and reliability, and allow for accelerated innovation”.
Jay Gendron, IGT Chief Operating Officer, Global Lottery commented: “The California Lottery has trusted IGT to provide best-in-class, modern lottery solutions for more than three decades, driving continued increased sales for the Lottery and more than $41 billion to support California’s public schools. IGT’s enhanced second-chance promotions platform will provide maximum flexibility for the California Lottery to create a variety of exciting promotional drawings and bonus capabilities for its players.”
The Las Vegas, Nevada based company will continue the provision and maintenance of the 140,000 point-of-sale machines across the state in over 23,000 retailer locations. IGT also provides the lottery with instant ticket games and services, field services, marketing and research capabilities and a full suite of support services.
The California Lottery, during 2021 sold over $9 billion in tickets. In particular, the California customer has a penchant for instants, with 75% of total sales coming from scratchcards. The highest percentage of sales volume was on $20 scratch cards, which sold $2,125.5 million (31% of total 2021 sales), followed by $10 scratch cards which sold $1,837.4 million (27%). By total volume of sales (not value), lower value scratchcards in the region of $1 – $3 were the most popular, and likely served the highest RTP.
Lottery is the largest gambling product in the state, given last year’s failed ballot in an attempt to legalize California sports betting.