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IGT extends instant games contract with Michigan Lottery

News

International Game Technology (IGT), through its IGT Global Solutions subsidiary, has agreed a contract extension with Michigan Lottery to continue providing instant ticket games and related services until December 2021.

IGT has been supplying instant ticket games to the lottery since 2017, most recently launching games such as $10 Ruby Mine and $30 Ultimate Millions.

In 2019, the lottery licensed Wheel of Fortune from IGT for use in a digital game that continues to be a top performer, according to the supplier.

In addition to the provision of instant ticket games, IGT has served as the primary lottery technology supplier for the operator since 1988.

It provides the lottery with a variety of products and services such as draw-based systems, retail and self-service lottery terminals, a primary data center, retailer training, field services, field merchandisers and a special events team.

Glenn Strong, deputy commissioner of marketing for Michigan Lottery said: “We are fortunate to work with a number of instant game printing partners that assist us in developing engaging and entertaining tickets, which comprise about 48% of our sales.”

“Our work with IGT helped the Lottery contribute more than $1bn to public education in Michigan last year for the first time ever.”

IGT’s chief operating officer for lottery Jay Gendron added: “IGT is pleased to continue its partnership with the Michigan Lottery, growing their instant ticket portfolio and delivering compelling, top-performing instant ticket games to the Lottery’s players,”

“We look forward to ensuring lasting success for the Lottery through our innovative games and ongoing support providing player-centric services such as game planning, marketing, research and analytics, and production.”

In October last year, the Michigan Lottery also agreed an extension to its software licensing agreement with Scientific Games, in a deal which saw the lottery continue to use the supplier’s Gem Intelligence solution to drive retail performance and instant game sales.

Under the existing agreement, Scientific Games also supplied the operator with instant games and licensed properties.

Results published in November showed that IGT had been able to limit its net loss in the third quarter of 2020 by reducing costs, while a strong performance from its lottery division helped revenue improve compared to the second quarter which suffered the effects of the novel coronavirus (Covid-19) pandemic.

Revenue for the three months to September 30 fell 14.9% year-on-year to $981.5m, comprised of $880.1m in services revenue (down 4.5%) and $101.3m in sales, down over 50% year-on-year.