GTECH Acquires Rights to Barbados Lottery
WEST GREENWICH, Rhode Island – (PRESS RELEASE) -- GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Global Services Corporation, has entered into an agreement to acquire the operation and management rights of The Barbados Lottery. GTECH will become the exclusive central system and services supplier to The Barbados Lottery, which is now comprised of the Barbados Olympic Association, the Barbados Cricket Association, the Barbados Turf Club, and the National Sports Council, under an 18-year agreement commencing at the closing, which is expected in May 2005.
"We are extremely pleased to have the opportunity to become the exclusive central system and terminals provider for all three online lottery license holders in Barbados," said GTECH President and CEO W. Bruce Turner. "Under this unique agreement, GTECH will essentially become the sole lottery operator on the island. By leveraging our existing LILHCo central system in Austin, Texas, we are able to offer overall reduced operating costs to The Barbados Lottery and even greater returns for the good causes in Barbados."
Presently, GTECH is the technology and services provider for the online lottery games operated by the Barbados Olympic Association. In addition, GTECH's subsidiary, Leeward Islands Lottery Holding Company (LILHCo), provides the equipment for the Barbados Cricket Association's online lottery games. The Barbados Turf Club currently operates its online games using another vendor's equipment. Under the terms of the 18-year integrated services agreement, GTECH will migrate the online games of all three entities to GTECH's Enterprise Series(TM) solution, to be operated out of Austin, Texas. GTECH will also provide approximately 250 Altura(R) terminals and an IP-based wireless communications system will be installed as the interface between the retailers and the central system.
GTECH will provide ongoing services to The Barbados Lottery including maintenance of the central system, terminals, and communications network; retailer training; hotline management; and field service. As the lottery operator, GTECH will also be responsible for lottery marketing, including advertising and promotions; draw shows; game portfolio management; and auditing.
With respect to its integrated services agreement with The Barbados Lottery, GTECH expects to generate revenues of approximately $80 million to $100 million over the 18-year term.