Gtech (NYSE:GTK)
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GTECH Selected by the Multi-State Lottery Association (MUSL) to
Supply the First Ever Multi-Vendor, Multi-State Video Lottery Wide Area
Progressive (WAP) Solution
Company Expands its Video Lottery System Offering into Two New Jurisdictions;
Broadens Exposure of GTECH's Unique Progressive Jackpot Solution
WEST GREENWICH, R.I., Dec. 21 /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH
Corporation, was selected by the Multi-State Lottery Association (MUSL) to
supply equipment, software, services, and communications network for the first
ever multi-vendor, multi-state video lottery Wide Area Progressive (WAP)
solution. This decision by MUSL is the result of a competitive procurement
involving four other bidders.
"GTECH understands MUSL's desire to enhance its video lottery program with the
addition of Wide Area Progressive. The addition of larger prizes will increase
player excitement, resulting in greater player satisfaction and increased
sales," said GTECH President and CEO W. Bruce Turner. "Through our proven
video lottery solution, GTECH can provide MUSL with a progressive system that
will help maximize the net proceeds from video lottery sales, while offering
the highest level of integrity, reliability, security, and system flexibility
to meet the evolving needs of MUSL."
GTECH's unique and patent pending multi-vendor concept allows video lottery
terminals (VLTs) from multiple vendors to be linked in a single progressive
game, and affords MUSL the greatest flexibility in providing players with their
favorite games within a progressive environment.
Upon successful completion of a four-year contract with MUSL, GTECH will
provide MUSL with the Company's Enterprise Series(TM) Video central system
solution, which is currently operating in a multi-venue, multi-vendor framework
today in the State of Rhode Island. The three MUSL jurisdictions to initially
participate in the WAP are Rhode Island, Delaware, and West Virginia, where the
lotteries in each of these jurisdictions currently regulate the operation of
the VLTs installed at the nine racinos located in these states. All VLTs
involved in the WAP network will participate on a percentage of net machine
income, beginning with approximately 250 VLTs in the three jurisdictions and
growing over time.
Enterprise Series Video is a comprehensive centralized software system for
administering WAPs and video lottery networks. It provides downloading,
security, redundancy, event logging, and database collection of all gaming
activity in a multi-vendor environment. ES Video accumulates jackpot
information from each VLT attached to the progressives, updates the signs, and
provides notification of winners.
With respect to its proposed participation arrangement with MUSL, GTECH expects
to generate revenues of approximately $5 million.
MUSL is a non-profit, government-benefit association owned and operated by its
member lotteries. Each of the 30 MUSL members offers one or more of the games
administered by MUSL. All profits are retained by the individual lotteries and
are used to fund projects approved by the legislature authorizing each lottery.
Certain statements contained in this press release are forward looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The Company identifies
forward looking statements by words such as "may," "will," "should," "could,"
"expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," or
similar words that refer to the future. Such statements include, without
limitation, statements relating to the prospects and financial outlook for the
Company, which reflect management assumptions regarding: (i) the future
prospects for and stability of the lottery industry and other businesses in
which the Company is engaged or expects to be engaged, (ii) the future
operating and financial performance of the Company (including, without
limitation, expected future growth in revenues, profit margins and earnings per
share), and (iii) the ability of the Company to retain existing business and to
obtain and retain new business. Such forward looking statements reflect
management's assessment based on information currently available, but are not
guarantees and are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated in the forward looking
statements.
These risks and uncertainties include, but are not limited to, those set forth
above, in the Company's subsequent press releases and on reports by the Company
on Forms 10-K, 10-Q and 8-K, and other reports and filings with the Securities
and Exchange Commission, as well as risks and uncertainties respecting: (i)
the potential impact of extensive and evolving government regulations upon the
Company's business; (ii) the ability of the Company to continue to retain and
extend its existing contracts and win new contracts; (iii) the possibility of
slower than expected growth or declines in sales of lottery and gaming goods
and services by the Company or the Company's customers; (iv) exposure to
foreign currency fluctuations; (v) risks and uncertainties inherent in doing
business in foreign jurisdictions; (vi) the relatively large percentage of the
Company's revenues attributable to a relatively small number of the Company's
customers; (vii) the possibility of significant fluctuation of quarterly
operating results; (viii) the intensity of competition in the lottery and
gaming industries; (ix) the possibility of substantial penalties under and/or
termination of the Company's contracts; (x) the ability of the Company to
respond to technological change and to satisfy the future technological demands
of its customers; (xi) opposition to expansion of lottery and gaming; (xii) the
Company's ability to attract and retain key employees; and (xiii) the
possibility of adverse determinations in pending legal proceedings.
GTECH, a leading global information technology company with over $1 billion in
revenues and more than 5,400 people in over 50 countries, provides software,
networks, and professional services that power high-performance, transaction
processing solutions. The Company's core market is the lottery industry, with
a growing presence in commercial gaming technology and financial services
transaction processing. For more information about the Company, please visit
GTECH's website at http://www.gtech.com/.
Contact:
Robert K. Vincent
Public Affairs
GTECH Corporation
401-392-7452
DATASOURCE: GTECH Holdings Corporation
CONTACT: Robert K. Vincent, Public Affairs of GTECH Corporation, +1-401-
392-7452
Web site: http://www.gtech.com/