BUSINESS

Texas Lottery Commission favors GTECH

TAGs: GTech, Intralot, Scientific Games, Texas Lottery Commission

The Lottomatica Group subsidiary, GTECH Corporation is the successful proposer in the Texas Lottery Commission’s search for a new online and instant lottery contract.

The seven-year contract is expected be finalized in the fourth quarter following a protest period. The integrated services contract for the online and instant lottery system includes four two-year extension options. GTECH has emerged victorious over rival proposals from Intralot and Scientific Games. But there are those who smell a rat.

State Representative Garnet F. Coleman, Democrat of Houston, called for an immediate investigation of Gtech’s performance and its relationship with the commission. In a statement published by the NY Times, Coleman said “I believe the vendor and the lottery commission operate as one…It eliminates competition — and if it’s not competitive, we’re not getting the best price for the operation.” These allegations stem from Gartner Inc., a Connecticut consulting company that the commission had hired to help shape the specifications for bidding, but also acknowledged it was also being paid by Gtech.

GTECH said that further details of the contract will be disclosed following the signing of a definitive agreement with the Texas Lottery. Early estimates have the contract being worth up to $1 billion with GTECH raking in around $100 million per year.

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