The New Mexico Lottery today awarded a contract for a new computer gaming system to Georgia-based Intralot, ending a competitive bidding process that started more than two and a half years ago.

Over the life of the seven-year contract, the lottery will pay Intralot a base price of 1.50 percent — or $18.2 million — on projected total net sales of $1.15 billion. Intralot's base price includes ticket sale and validation terminals for 1,100 lottery retailers statewide as well as related peripheral equipment and a communications network.

The lottery expects to save approximately $35.4 million over existing contract rates. Its current vendor is paid approximately 8.5 percent of annual online ticket sales and approximately $1.4 million a year for retail terminal and communications fees under a contract expiring in November 2008.

CEO Tom Romero said the lottery has negotiated contract rates that are among the industry's lowest.

"Intralot was the lowest bidder and it offered the products and services best suited to help the lottery increase sales and generate more revenue for Legislative Lottery Scholarships," Romero said. "The lottery and Intralot are entering into a relationship that will serve the State of New Mexico very well."

All net revenues from the sale of lottery games benefit the Legislative Lottery Scholarship program, which provides tuition assistance to New Mexico residents attending the state's public colleges and universities.

"We would like to send a message to all students in high school today and to their parents — 'A college education is within your reach,'" said Reta Jones, chair of the lottery's board of directors. "'Stay in school and study hard because this state wants to invest in your future by providing Legislative Lottery Scholarships.'"

New Sales Equipment