New York Lottery Announces Instant Ticket Printing Contract Awards
The New York Lottery today announced the outcome of its Request For Proposals (RFP) process to award contracts for instant ticket printing and marketing services. Scientific Games Corporation (Scientific Games), a New York-based company, has been selected as the primary vendor. GTECH Printing Corporation (GTECH) and Pollard Banknote Limited (Pollard) have been selected as alternate printers. The new contract will take effect upon expiration of the existing contract on July 28, 2011. All three companies currently act as qualified vendors for instant ticket printing for the New York Lottery.
"Printing lottery instant tickets is a highly specialized process," said Gordon Medenica, Director, New York Lottery. "We have had very good experience with all three companies over many years. The final selection of a primary printer versus alternate printers was the result of a detailed evaluation process and a thorough analysis of the capabilities of each bidder."
As the selected primary printer, Scientific Games will provide a variety of marketing services, including research, game design and retail support, and they will receive a minimum of 50 percent of the printing work. The Lottery spends more than $24 million annually on instant ticket printing, producing over 1.6 billion tickets per year. As alternate printers, GTECH and Pollard will receive specific ticket printing assignments as selected by the Lottery. In the last year, Scientific Games received $17.7 million for instant ticket services provided under the terms of its current contract with the New York Lottery.
The new contract contains various incentives in the compensation structure designed to improve the New York Lottery's bottom-line performance. As the primary vendor, Scientific Games will be able to earn performance awards based on hitting various benchmark levels of sales and profits. "It's a win-win situation for both the Lottery and the vendor," Mr. Medenica added.
Details of the RFP process, the evaluation criteria and the compensation structure are available on the New York Lottery's website, www.nylottery.org
The New York Lottery continues to be North America's largest and most profitable Lottery, contributing over $3 billion in fiscal year 2010-2011 to help support education in New York State. The Lottery's contribution represents over 15 percent of total state education aid to local school districts.
Scientific Games Corporation is a global leader in providing customized, end-to-end gaming solutions to lottery and gaming organizations worldwide. Scientific Games' integrated array of products and services include instant lottery games, lottery gaming systems, terminals and services, and internet applications, as well as server-based interactive gaming machines and associated gaming control systems.
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