The Texas Lottery Commission’s five member board unanimously approved three 2-year extensions to its existing nine-year contract with lottery operator, International Game Technology (IGT). The six-year extension period will begin Sept. 1, 2020 and continue through Aug. 31, 2026.
“This is good government and a testament to the Lottery’s strong contract monitoring and compliance work,” said J. Winston Krause, Chairman of the Texas Lottery Commission. “The contract extensions position us to continue to produce record revenue for Texas education and veterans while being smart, responsible stewards of state funds.”
IGT will continue to be compensated under the current rate of 2.2099% of lottery sales through the end of the initial contract period ending on Aug. 31, 2020. The compensation rate will decrease with each two-year contract extension to 2.0773% (ending on Aug. 31, 2022), 2.0331% (ending on Aug. 31, 2024) and 1.9889% (ending on Aug. 31, 2026.
IGT has provided lottery operator services to the Texas Lottery since the Lottery’s inception in 1992. The Texas Lottery’s current contract with IGT was executed in 2010 and has resulted in annual savings of more than $20 million. The contract was the culmination of a three-year process in which competitive bids were submitted from three of the world’s major lottery operator service providers.
“We appreciate the outstanding job IGT has performed as the lottery operator for the state of Texas,” said Krause. “IGT shares our passion for innovation and our pursuit to provide the citizens of Texas with the best entertainment experience available through our products,” he said.