Press Room

Lottery Board Approves Proposal For Computer System

Board Accepts Recommendation For Sci-Games System, 1 Of 3 Under Consideration

DES MOINES, Iowa - The Board of the Iowa Lottery Authority on Thursday accepted a recommendation of a proposal from Georgia-based company for the biggest contract involved in the lottery's operations.

The Board voted 5-0 to accept a lottery evaluation committee's recommendation of Scientific Games International as the vendor that will supply the communications equipment, software, and computerized terminals that are used to sell and validate lottery tickets at about 2,500 retail locations statewide.

An evaluation team made up of officials from the Iowa Lottery recommended the Sci-Games proposal. During its meeting at lottery headquarters in Des Moines, the Lottery Board then issued a notice of intent to award a contract to Sci-Games subject to completion of a successful background investigation of the company by the Iowa Division of Criminal Investigation.

Since the lottery's start, each of the Lottery's sales and validations systems has been in use for several years. But like any electronic or computer equipment, each system must be updated and replaced over time. The Lottery's current system has been in place since 2001, and the contract for it will expire in July 2011.

The proposal from the Alpharetta, Ga.,-based Sci-Games is for a proposed contract period will begin July 3, 2011, at a projected cost of $50.3 million over the following 10-year period.

Preparing such an RFP takes about 1 1/2 to 2 years. And, because such contracts are generally only awarded about once a decade, they are highly sought after within the lottery industry.

The Iowa Lottery received bids for its system from Scientific Games; INTRALOT Inc., based in Duluth, Ga.; and GTECH Corp., based in Providence, R.I. There were 1,000 points possible within the Iowa Lottery's RFP and Sci-Games received the highest technical score as well as the best pricing score.

Sci-Games is the vendor of the Iowa Lottery's current sales and validations system.

The voting members of the Iowa Lottery Board are: Chairperson Mike Klappholz of Cedar Rapids, retired Cedar Rapids chief of police; Tom Rial, a Des Moines marketing consultant; Elaine Baxter, a former state legislator and secretary of state from Burlington; Brad Schroeder of Pleasant Hill, an attorney whose law practice is based in Des Moines; and Mary Junge, a CPA and a practicing tax and estate planning attorney who lives in Cedar Rapids. State Treasurer Michael Fitzgerald is an ex-officio member of the Board.