Bloomberg News

Lottomatica Wins Longer New York Lottery Contract (Update1)

March 01, 2007

Lottomatica SpA (IPG), Italy's biggest lottery company, said its Gtech Corp. unit won a three-year extension of its contract with the New York Lottery in an agreement that may bring more than $200 million in revenue.

The contract extension, which involves providing lottery products and services, will run through Feb. 28, 2010, Lottomatica said in a stock exchange statement today.

``The New York Lottery is one of the most successful lotteries in the U.S., with total on-line and instant ticket sales expected to surpass $6.5 billion in its fiscal year ending in March 2007,'' W. Bruce Turner, chief executive officer of Gtech and Lottomatica, said in the statement.

Lottomatica completed its $4.7 billion acquisition of West Greenwich, Rhode Island-based Gtech, the world's biggest seller of computerized lottery systems, in August. The company grabbed 63 percent of the global market and operations in 50 countries with the purchase, reducing dependence on its domestic lottery.

Shares (LTO) of Lottomatica fell 54 cents, or 1.8 percent, to 29.41 euros in Milan, giving the company a market value of 4.46 billion euros ($5.88 billion).

To contact the reporter on this story: Sara Gay Forden in Milan at sforden@bloomberg.net, or

To contact the editor responsible for this story: Keith Campbell at k.campbell@bloomberg.net.


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