The Florida Lottery has given notice of its intention to renew Scientific Games’ contract to serve as its primary supplier of instant win games, continuing a relationship that began in 2008.
It comes as the existing contract between Scientific Games and the lottery nears its end, on 30 September, with the solutions giant understood to have fended off competition from two rival bidders.
The contract covers the provision of tickets and printing services, as well as ticket vending and dispensing machines.
Negotiations between Scientific Games and the Florida Lottery over the terms of the new contract are expected to begin next week.
It comes after the sale of instant win games surpassed expectations by $89.2m in Florida’s 2018-19 fiscal year, ended 30 June, 2019. For that year, lottery sales exceeded projections by $132.6m in total, with the bulk of the growth down to instant win games. As a result, an additional $60.8m was raised for Florida’s Educational Enhancement Trust Fund.
This resulted in sales projections being revised upwards for the coming years. For the 2019-20 year, which began on 1 July, the state Office of Economic and Demographic Research now expects to generate $5.18bn in instant win sales, $146.2m higher than originally planned.
This will rise by around $200m in subsequent years, with sales reaching an estimated $5.64bn by 2023-24.
For the fiscal year to 30 June, 2018 – the most recent figures available – the Florida Lottery reported an 8.8% year-on-year increase in operating revenue to $6.71bn.