Twelve new Vermont jobs are on hold following an appeal in Maine of that state’s decision to change its lottery vendor to the same firm that handles Vermont. The Kennebec Journal is reporting today that Scientific Games of Gardiner, Me, has appealed the decision by the Maine Bureau of Alcoholic Beverages and Lottery Operations to award the new contract to SG’s international competitor, Intralot. Intralot, based in Greece, won the Vermont contract in 2009. That decision by the Vermont Lottery to go with Intralot was also appealed by SG, which, as in Maine, was the previous contractor.
The Kennebec Journal story said the Intralot decision was made in early October. It said that Intralot planned to transfer 12 positions to its Vermont data center in East Montpelier. The two companies handle the technical and management side of the lotteries. In Maine, SG also prints the lottery cards, but that contract expires next year.
Meanwhile in Vermont, Intralot was chosen as the new contractor by the Vermont Lottery in 2009 based on largely on the fact that it would save the commission about $3 million over the length of the deal. Intralot was scheduled to take over the system on July 1, 2010, but SG filed an injunction in June to stop the transfer. The parties mutually agreed to dismiss the case in Washington County Superior Court on September 8. The two sides agreed not to sue each other and SG paid the state $2,000 to cover court costs.
As for the new case in Maine, Vermont Lottery Executive Director Alan Yandow told Vermont Business Magazine that he had no comment. And as for the Vermont case, he referred to the court documents (SEE BELOW).
The new Vermont contract with Intralot is scheduled to run six years with an option for two additional, two-year renewals. Intralot will manage the Vermont Lottery’s associated gaming products, retailer network and support services.
In return, Vermont will receive an upgraded Lottery system and equipment. Intralot, in a statement announcing the deal, said its state-of-the-art telecommunications system will connect its terminals in 700 locations throughout the state to its LOTOSTM O/S Central System, enabling secure and reliable transactions.
Yandow stated at the time of the Intralot deal: “We look forward to a strong, mutually beneficial partnership with Intralot. In the coming years, change in the lottery industry will move very fast, and we anticipate our working relationship with Intralot will assist us in making those changes, and increase our contribution to the Vermont Education Fund.”
Since the sale of the first ticket in February of 1978, the Vermont Lottery, according to its Web site, has produced over $1.6 billion in overall sales. From those sales, over $1 billion has been returned to players in the form of prizes, over $91 million has gone back to the local communities and been paid to local Lottery agents in the form of commissions, and over $430 million has gone to the State of Vermont (Education Fund since FY 1999).
Vermont Lottery Agents receive a 5.75% sales commission on all Tri-State games (Vermont, New Hampshire, Maine) and instant ticket sales; they also receive a 6% sales commission on all Multi State Lottery Association ticket sales. Agents also receive a 1% bonus (capped at $30,000) for selling a winning Vermont Instant Scratch Ticket, Powerball, or Tri-State lottery ticket of $500 or more. The bonus commission is paid when the ticket is claimed.
LEGAL DOCUMENTS:
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