Intralot pay $240 million for 10-year supply contract with Illinois State Lottery. The deal comes as 44 jurisdictions have commissioned weekly lotteries to take place in the United States. Intralot will also roll their technology out into 7,500 retail locations state-wide.
Whichever way you choose to slice it, the attitudes to online gambling and its respective legislation in the U.S. seems contradictory at best.
After all, while just four American states have legalised online gambling during the last decade or so (Pennsylvania being the most recent to push through legislation), a total of 44 jurisdictions have commissioned weekly lotteries to take place.
As if this was not confusing enough, we must consider that online gambling is often opposed because of its reliance on so-called 'games of chance' that actually require variable levels of skill, while lottery gameplay is permitted despite being entirely opportunistic in its nature.
Still, the lottery bandwagon rolls on in the U.S., with global supplier Intralot having recently made big waves by signing a supply contract with the lucrative Illinois State Lottery. Below, we'll look at this in closer detail while asking what it means for the industry as a whole. With regulations affecting terms such as free spins, we see a lot more things happening in the UK market as well.
The Deal – What do we Know?
The deal, which was only announced recently, saw Intralot pay $240 million for a 10-year supply contract with the state of Illinois. Signed with Camelot Illinois LLC, the deal will run through October 2027 and empower Intralot to assume responsibility for the operation and management of the lottery within the boundaries of the state.
While the brand will operate within the framework laid out by the Private Management Agreement (held between the State of Illinois, the Department of the Lottery and Camelot Illinois LLC), the biggest development here is that they will also roll out their technology across 7,500 retail locations state-wide.
Key installations will include a cutting-edge Photon terminal and the Genion, which is a compact ticket checker to determine winners. Intralot will also roll out clerk-operated lottery terminals in busier locations with high levels of footfall, in order to successfully meet demand and higher than average purchase rates.
Interestingly, they'll also introduce a player-operated terminal called the WinStation at the Illinois market, in a bid to develop further avenues of self-service and create a more profitable business model.
What Does This Mean for Illinois and the Industry as a Whole?
This new deal also extends an existing and lucrative partnership between Intralot and Camelot, and one that has boosted profitability and the consumer experience across the globe. According to John Donahue, the CEO of Intralot, they “have been a successful technology partner with Camelot elsewhere in the world, and together will prove to be the right combination for the State of Illinois Lottery in the future”.
This will certainly help to meet the rising demand for lottery gameplay in the region, while also creating more efficient service to customers. With these points in mind, the new deal could well help to make the Illinois State Lottery more profitable for key stakeholders, without impacting negatively on the customer experience or requiring players to cough up more.
Over time, this could also create a similar template for deals across the remaining 43 states that allow lottery gameplay, particularly as authorities and brands look to leverage technology as a way of satisfying customers and increasing efficiency.