IGT Secures 10-Year Contract with North Carolina Lottery

International Game Technology (IGT), a prominent leader in the North American lottery industry, has secured a new 10-year contract with the North Carolina Education Lottery (NCEL), reinforcing the long-standing relationship between the two organizations. The North Carolina lottery commission approved the agreement during a recent meeting, which will extend the partnership that first began in 2006 when the NCEL was launched. This deal not only highlights IGT’s ongoing commitment to providing comprehensive lottery services but also ensures that the NCEL remains well-positioned to continue its strong performance as one of the top five lotteries in the United States.

The contract, scheduled to begin in 2027, underscores IGT’s growing presence in the U.S. market. For NCEL, this partnership serves as a vital component of its strategy to maintain its competitive edge and reach its future goals. IGT’s involvement will play a key role in shaping the NCEL’s efforts to expand its offerings and improve operational efficiencies, ensuring that it continues to be a significant contributor to public education funding in North Carolina.

“We look forward to furthering our partnership, helping to increase contributions to education, and bringing the greatest value to North Carolinians,” said Michael Chambrello, CEO of IGT’s North American lottery operations, in a statement. Chambrello emphasized IGT’s commitment to supporting the NCEL in achieving its next set of strategic objectives, highlighting the role that the company’s technology and expertise will play in this endeavor. The partnership, according to Chambrello, is designed to drive continued growth for the NCEL while benefiting the broader community.

 

Financial Adjustments and Technological Advancements

A significant aspect of the new agreement involves a revision to IGT’s financial arrangement with the NCEL. Under the terms of the contract, IGT’s commission on gross sales from scratch-off tickets will be reduced from 1.15% to 0.0785%. This substantial reduction is projected to save the NCEL more than $100 million over the duration of the contract. This adjustment reflects an effort by both IGT and the NCEL to maximize the efficiency of the lottery’s operations, freeing up resources that can be redirected to the lottery’s core mission of funding education.

Additionally, the contract stipulates that IGT will provide 500 new self-service kiosks to lottery retailers throughout the state at no cost to the NCEL. These kiosks, which will feature cashless payment capabilities, represent a forward-looking move toward modernization in line with the growing trend of cashless transactions in retail environments. The introduction of these machines is expected to drive greater convenience for lottery players and potentially boost sales as more consumers move away from cash-based purchases.

Alice Garland, Executive Director of the NCEL, expressed confidence in the extended partnership with IGT. “With our new agreement, 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. She noted that the integration of new technology would not only enhance the player experience but also streamline the lottery’s operations. Garland emphasized that the partnership positions the NCEL to continue its upward trajectory, ensuring that the lottery remains a vital contributor to the state’s education system for the next decade.

 

 

Future Expansions

The new deal with the NCEL is part of a broader pattern of expansion for IGT, which has secured several major contracts over the past year. In July, IGT was involved in a $6.3 billion acquisition by Apollo Global Management, a move that signals continued consolidation within the gaming and lottery industry. Also in July, IGT signed a seven-year contract with the Colorado Lottery, which includes the replacement of the state’s central lottery system and the development of a new mobile app, further cementing the company’s role as a leader in providing lottery technology solutions.

IGT has been actively strengthening its partnerships with other state lotteries as well. In June, the company announced an eight-year contract extension with the Connecticut Lottery, marking yet another significant long-term agreement. In May, IGT secured a three-year extension with the Mississippi Lottery, further demonstrating the company’s ability to maintain and expand its relationships across multiple states.

In addition to its work in the lottery sector, IGT has expanded its footprint in the sports betting industry. Earlier this year, the company signed a multi-year agreement to serve as the sports betting operator for New Mexico’s Santa Ana Star Casino Hotel. This venture into sports betting is part of IGT’s strategy to diversify its offerings and capitalize on the rapidly growing market for legalized sports wagering in the United States.

Overall, IGT’s ongoing deals and strategic partnerships signal the company’s robust position in the gaming industry. The new 10-year contract with the NCEL not only reflects IGT’s steady growth in the U.S. lottery market but also underscores its ability to adapt to new technological and financial landscapes while continuing to support the public good through education funding.