Lottery vendors have new requirements | Part I
On Friday it became widely known that a new contract has been found to a to one of the private lottery vendors. Earlier he got another one, but he did not managed to reach the goals he set before.
Contract with GTECH has been signed several years ago and included some requirements. But since that time nothing has been reached and the commission of Hoosier Lottery changed the contract and made other requirements.
The targets were lowered as to make the risk less. The payment now are also smaller and in such a way the risk is reduced.
GTECH also needed to do something after the other side made the requirements not so strict. So, it made the payments less. Also it promised to pay the government a sum of money, which is counted about $18.000.000.
The plan, which has been set for the several previous years, has not given any results. And now it only shows the state of the market and also several years of experience could help to observe the situation.
The meeting and talks, which took place, brought positive results for both side and it is a success. It was probably in the interest of all of them to find some decision, which will be good for them.
The new year for GTECH begins in 2016. The fiscal year will take the beginning in July. $270.000.000. – this is the minimum goal for the company, which must be reached. Now it is lower than the previous times. In a year this minimum is planned to be raised to $290.000.000.
The previous document required the goals for these year much higher to be reached – they were $365.000.000 and in a year – $410.000.000. Under the agreement the company would have paid a penalty is they would not reach the goal.
The reduction was based on the experience of 15 years and was counted as at least 1 billion dollars.