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IGT, a prominent name in the North American lottery industry, has announced a new 10-year contract with the North Carolina Education Lottery (NCEL). North Carolina’s lottery commission recently approved the contract during one of its meetings.
The deal clarifies the future of the NCEL, which has reached top-five status in the United States. For IGT (NYSE: IGT), the deal signifies its continued growth and consistency in the U.S. market. The NCEL has partnered with IGT since the lottery launched in 2006.
Michael Chambrello, CEO of IGT’s North American lottery operations, said in a statement that the company is happy to be working with the NCEL for another 10 years.
“We look forward to furthering our partnership, helping to increase contributions to education, and bringing the greatest value to North Carolinians as we help the NCEL reach and exceed its next set of strategic goals.”
IGT CEO of North American Lottery operations Michael Chambrello
Key takeaways
- The North Carolina Lottery and IGT have agreed to a 10-year deal.
- The new contract is set to start in 2027.
- IGT has secured several major state lottery contracts over the past year.
Change in IGT payout, new machines coming as part of deal
There were several key details revealed about the partnership during the Lottery Commission’s meeting, according to PlayiLottery. First, IGT’s commission on lottery sales will drop from 1.15% of gross scratcher sales to 0.0785%. The commission noted in its meeting that the reduced commission will save the lottery more than $100 million.
Additionally, the contract calls for IGT to provide 500 new self-service kiosks at lottery retailers free of charge. The new machines will have a cashless purchase feature, a move that will likely help boost sales in what is becoming a cashless culture.
NCEL Executive Director Alice Garland said her organization has seen the benefits of IGT’s partnership and that it looks forward to the future, according to PlayiLottery.
“With our new partnership, the lottery will get the systems and equipment it needs to work more effectively and efficiently for its players, its retail partners and the good cause it serves,” Garland said. “By working together, the next 10 years can be as successful as the first.”
NC deal is latest in a flurry of news from IGT
IGT has been making headlines in a variety of ways over the past year. For example, in late July, the company was part of a $6.3 billion acquisition by Apollo Global Management.
Earlier that month, IGT announced it signed a seven-year contract with the Colorado lottery. The company will replace the state’s central lottery system with a new one and will build a new app for the lottery.
In June, IGT signed an eight-year contract extension with the Connecticut lottery. The month before that, the company announced a three-year extension with the Mississippi Lottery.
IGT isn’t just a lottery services provider and operator, either. In February, it entered a multi-year agreement to become the sports betting operator for New Mexico’s Santa Ana Star Casino Hotel.
