Oregon Lottery and gaming giant International Game Technology PLC (IGT) announced a five-year pact in early October.
Through this agreement, Oregon will look to replace its central lottery system, enhance retailer point-of-sale equipment, and provide the latest model of self-service vending machines.
The contract includes the option for two five-year extensions, and follows an earlier agreement to update the state’s more than 12,000 video lottery terminals (VLTs). IGT has served as central system provider, game supplier, and content developer for the Oregon Lottery since its inception in 1985.
The lottery’s three-phase sports betting rollout, detailed in a presentation to the Oregon Lottery Commission in May, is partially dependent on the upcoming system upgrade.
- The first phase, Scoreboard, the lottery’s online sportsbook operated in partnership with SBTech, launched successfully on Oct. 16.
- The second step, self-service sports betting kiosks, is projected to move forward by early 2020, according to Matt Shelby, Oregon Lottery public information manager.
- A sports betting game, similar to the lottery’s former Sports Action parlay game ticket, will be sold through the lottery’s retailer network in the final phase of the rollout.
Oregon Lottery’s sports wagering ticket game is dependent on the system upgrade, and probably won’t be available for at least another year, Shelby said.
Scoreboard operator SBTech and IGT, as well as others, provide self-service sports betting kiosks to sportsbook operators in the United States.
IGT knows lottery
IGT supports 40 of the 45 state lotteries operating throughout the United States.
Headquartered in the UK, the company has principal operating facilities in Rome, Las Vegas, and Providence, Rhode Island.
Oregon Lottery’s central system currently runs on the 2008 version of IGT’s Enterprise Series (ES) platform. This supports traditional lottery games such as instant win tickets, Keno, as well as monitor games such as Powerball, Mega Millions, and Oregon’s Game Megabucks.
Consumers’ needs have changed dramatically over the last decade, and Oregon Lottery hopes to keep pace by upgrading to IGT’s comprehensive software platform, Aurora.
Aurora is a work in progress. The platform is being designed to adapt to – and maximize the potential of – today’s marketing challenges.
IGT said it plans to implement Aurora “via a multi-year roadmap that will continue to evolve based on business priorities and customer feedback.”
When fully developed, Aurora endeavors to provide:
- Omnichannel capability for consumers; whether on-site, online, or via mobile device.
- Open source code to enable easy integration with third-party developers and service providers.
- Quick-to-market delivery of games and new technology.
- Easy, one-site management over all lottery applications and back-office functions.
- Actionable analytical tools throughout the entire system.
The contract also includes a wide variety of enhanced retailer technology, including IGT’s newest self-service vending machine, GameTouch 20.
The 54-inch-tall, compact unit is coupled with a 32-inch-wide monitor. It can stock up to 20 instant win games, as well as tickets for draw games.
“IGT is a longtime partner of the Oregon Lottery,” Oregon Lottery director Barry Pack said in a recent press release. “We look forward to IGT delivering its latest technology to modernize our central system – allowing us to attract new players and implement new strategies for revenue growth.”
Oregon lottery revenue at a glance
Oregon voters in November 1984 approved an amendment to the state constitution to establish a lottery, overseen by a governor-appointed director and five-member commission.
State legislation gives the lottery a monopoly over all types of gambling, with the exception of tribal compacts.
Oregon Lottery has provided more than $12 billion in funding for state programs since its 1985 inception. The lottery contributed more than $726 million toward state programs in 2018 alone.
Voters have allocated lottery proceeds over the years to support myriad public goods. This includes public education, state park development, veteran services, treatment for problem gamblers, and more.
Lottery officials say the state has a small sports wagering market, and they expect sports betting revenue to be smaller. The handle is projected to be $330 million, with a revenue of $35.5 million in the first 12 months.
Sports wagering revenue has been earmarked for the state pension fund to help offset its debt.
Shortly after Scoreboard’s debut, more than 18,000 players had registered for accounts and wagered more than $1 million.