GTech and Scientific Games win Illinois contract

GTech and Scientific Games have succeeded in their joint bid to win the lucrative Illinois lottery contract, beating off competition from UK lottery giant Camelot.

Illinois governor Pat Quinn said that Northstar Lottery Group’s business plan anticipated an annual growth of the state’s lottery business of 10.6% over the next five years, generating around US$4.8bn. Northstar will also donate 5% of profits to support non-profit community organisations in Illinois during term of the 10-year contract.

Illinois, with New York, is among several US states looking at adding cash-based wagering products such as poker and casino as soon as regulation allows. The big three lottery providers in the US ““ GTech, Scientific Games and Intralot – are all known to be exploring the various options with state lotteries in order to help them achieve this via their interactive gaming arms.

Barney Frank’s current federal bill to regulate egaming includes an amendment clarifying that state lotteries offering games via the internet on an intrastate basis would not be in violation of the 1961 Wire Act, and also that lotteries and their suppliers would not require a federal licence to do so.

However, the New Hampshire Lottery Commission (NHLC), for which Intralot is the main supplier, last month abandoned plans to launch online versions of its games, on the grounds it would represent a “poor return on investment.”

Iowa also abandoned plans to offer intrastate poker late last year after opposition from several of the state’s 17 casinos, including Harrah’s. Casinos would have been required to allow local residents to register and deposit for the service at their premises.

The chief executive of Scientific Games’ SciPlay joint venture with Playtech targeting lotteries with egaming products, Rick Weil, confirmed to eGR SciPlay had been heavily involved in the Iowa plans.