NEW JERSEY TO AWARD 15-YEAR LOTTERY CONTRACT TO NORTHSTAR
(The following is a reformatted version of a press release issued by the New Jersey Treasury Department and received via electronic mail. The release was confirmed by the sender.)
State of New Jersey Department of the Treasury
For Immediate Release April 12, 2013
Northstar New Jersey Lottery Group To Be Awarded Marketing and Sales Contract to Support the New Jersey Lottery
Trenton - To ensure the future performance of the New Jersey Lottery exceeds its past record of providing essential support to State institutions and education programs, the Department of the Treasury’s Division of Purchase and Property has issued a Notice of Intent to award a 15-year contract to Northstar New Jersey Lottery Group to provide the Lottery with services to support its marketing and sales operations.
As part of the contract terms which guarantee the State a minimum amount of income, Northstar NJ will provide an accelerated payment of $120 million to the State upon the final award and execution of the contract. It has also committed to generating at least $1.42 billion of total additional net income for the State from Lottery operations over the life of the contract with a potential actual increase in net income of $6.88 billion. The $1.42 billion mark is above and beyond what the State could expect to see if Lottery operations remain unchanged.
Northstar NJ is a joint venture consisting of GTECH Corporation of Providence, Rhode Island, Scientific Games International of Alpharetta, Georgia, and OSI LTT NJ Holdings, a unit of the Ontario Municipal Employees Retirement System (OMERS). GTECH and Scientific Games are two of the world’s leading companies in lottery management and OMERS is one of the largest pension funds in Canada.
“For more than 40 years, the Lottery has provided critical financial support to New Jersey’s institutions and educational programs. The contract we plan to enter into with Northstar New Jersey protects that legacy commitment to New Jerseyans by positioning the Lottery for sustained growth and continued success in the face of an increasingly complex and competitive marketplace,” said State Treasurer Andrew Sidamon-Eristoff.
Carole Hedinger, executive director of the Lottery, said the contract will immediately strengthen its operations. “GTECH and Scientific Games have outstanding records of success in helping public lotteries grow their revenues and improve their operations. Their business plan for the Lottery is solid, well-researched and builds upon our existing strengths.”
“With GTECH and Scientific Games’ world-class resources and expertise available to us, we’ll be able to respond quickly to our customers’ preferences and apply new technology and more individualized support to help our retailers boost their profitability and efficiency,” she added.
The contract is the result of an intensive review of the Lottery’s current operations and its position in a fast-changing global gaming marketplace that began more than two years ago and has included extensive public outreach.
The first phase of the new contract will be a transition period in which Northstar NJ will work closely with the Lottery on preparing to deliver the full range of marketing and sales services specified in the contract.
Since it began operations in 1970, the New Jersey Lottery has provided more than $20 billion in support to State institutions and education programs. In the fiscal year ended June 30, 2012, the Lottery generated revenues of $2.76 billion and contributed $950 million in support to the State.
About Northstar New Jersey Lottery Group
Northstar New Jersey Lottery Group is a joint venture comprised of GTECH Corporation, a subsidiary of Lottomatica Group; Scientific Games Corporation; and, OSI LTT NJ Holdings Inc., an indirect subsidiary of OMERS Administration Corporation, the administrator of the Ontario Municipal Employees Retirement System pension funds (OMERS).
About GTECH Corporation
GTECH Corporation is a leading lottery operator and provider of gaming technology and services. With 8,600 people in more than 60 countries when combined with Lottomatica Group, GTECH provides operations management, innovative technology, creative content, and superior service delivery to effectively manage and grow today’s evolving gaming markets. GTECH is a subsidiary of Lottomatica Group, one of the world’s largest commercial lottery operators and a market leader in the Italian gaming industry. For more information about GTECH, please visit www.gtech.com.
About Scientific Games
Scientific Games Corporation (Nasdaq: SGMS) is a global leader in providing customized, end-to-end gaming solutions to lottery and gaming organizations worldwide. Scientific Games’ integrated array of products and services includes instant lottery games, lottery gaming systems, terminals and services, and internet applications, as well as server-based interactive gaming terminals and associated gaming control systems. For further information, visit Scientific Games’ website at www.scientificgames.com.
About OMERS OMERS is one of Canada’s largest pension plans, providing retirement benefits to more than 420,000 members across Ontario, Canada. With more than CAD$60 billion in net assets, its team of investment professionals uses a direct drive, active management investment strategy to invest in public and private market assets, including publicly-traded equities, fixed-income, infrastructure, private equity and real estate. For more information, please visit www.omers.com.
For Information Contact: Bill Quinn 609-633-6565
Northstar NJ Media Contact: Bob Vincent Senior Vice President, GTECH email@example.com 401-392-7322