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Issue Date: Vol. 51, No. 12, December 2011, Posted On: 12/1/2011

Illinois Awards SciGames VLT Contract

Marcus Webb
Scientific Games Corp., Scientific Games International Inc., Gtech, SciGames, Illinois Gaming Board, Illinois video gaming, Illinois video lottery, VLT, operator-run video gaming, Illinois Coin Machine Operators Association

SPRINGFIELD, IL -- A document obtained by Vending Times from reliable sources indicates that the Illinois Gaming Board has, for the second time, decided to award the contract to create and run the central computer system for video lottery terminals to Scientific Games Corp.

According to the document, Gtech and one other bidder sought the contract but were not successful.

Specifically, the contract award notice says that "The Illinois Gaming Board is giving notice of intent to award a contract for Central Communications Systems -- Video Gaming Act to Scientific Games to provide a centralized communication system in which to connect video gaming terminals, site controllers and other related technological components utilized in the video gaming industry."

According to the notice, the state of Illinois will pay SciGames $66,875,000 based on 0.7275% of the estimated net terminal income. The term of the contract is 72 months, running from Nov. 25, 2011 to Nov. 24, 2017.

The document, an official contract award notice from IGB (reference No. 22020362), was issued on Nov. 22, with a "notice expiration date" of Nov. 30, 2011. Apparently, then, the notice gives all interested parties one week to comment on the planned award by IGB.

Phone calls to officials at IGB and Scientific Games were not returned.

IGB originally awarded SciGames the same contract in August 2010. | SEE STORY

One month later, IGB canceled the contract, saying there had been miscalculations in bid assessments. SEE STORY

Illinois passed the Video Gaming Act in 2009. Some operator, manufacturer and distributor licenses have been issued, but a series of political and procedural issues have delayed full implementation.

Officials of the Illinois Coin Machine Operators Association, which has supported operator-run video lottery for 20 years, are hopeful that the state's VLT market will finally launch next year.

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