GTECH to Supply Mexico Lottery

Lottery supplier GTECH has reached an agreement with Mexico's primary online lottery operator Pronósticos para la Asistencia Pública to provide lottery products for six years.

Benefits of GTECH's Offerings

As a result, GTECH will provide a portfolio of instant ticket and draw-based games to the Mexican populace. The contract forged between GTECH Corporation and GTECH Servicios de Mexico was secured following a competitive process.

GTECH Americas president and CEO Jaymin Patel lauded the deal, emphasizing that social programs that would benefit.

Under terms of the arrangement, GTECH will initially supply upwards of 11,000 draw-based lottery terminals to replace the machines Pronósticos previously used.

Additional Services

GTECH will also assume the task of upgrading Pronósticos' communications networks and providing services to online as well as retail locations, through the development of new retail channels, along with maintenance of online terminals, and development of customer service operations.

Pronósticos director general Maria Esther de Jesus Scherman Leano praised the continuation of the longstanding partnership as it serves to “modernize Pronósticos’ lottery program and launch the next phase of our growth for the benefit of the communities it serves.”

Competitor Complaints

Competitors for the contract Sorteo Games and Win Systems complained that GTECH had an unfair advantage because GTECH submitted only after Sorteo and Win Systems bids had been unsealed, thus allowing any subsequent competitors such as GTECH to improve their offers accordingly. An investigation by Mexican authorities was conducted with no results. It is curious that GTECH was allowed to submit after the other submissions were unsealed, but in a country like Mexico alliances can take many forms.

Projections

GTECH's new terminals will go into service in September, initiating a period in which GTECH projects revenues of over $130 million.

Sweeping changes in online gambling regulations are sure to enable revenues to flow more freely as well.