Lotterywest Extends Intralot Contract to 2026
Intralot currently powers Lotterywest, the state lottery of Western Australia. Originally, the contract with Intralot was to expire a year from now. It appears that Lotterywest is pleased with Intrlot’s performance as the contract was recently extended until January 2026.
Lotterywest Extends Contract With Intralot
Intralot presently provides Lotterywest with lottery operating services throughout the region. Initially, the contract between the two was set to expire in January 2022. Late last week, news broke that Intralot has signed a contract extension with Lotterywest in Western Australia until January 2026.
Intralot extends Lotterywest contract until 2026https://t.co/bHzUL7vajt
— iGB (@iGamingBusiness) January 5, 2021
According to a press release from Intralot, the contract extension is a full endorsement of Intralot’s successful launch of its LOTUS platform and advanced retail terminals. Intralot has provided services to Lotterywest for the last 13 years and provides a safe and responsible gambling environment for patrons.
According to Intralot Australia CEO Marios Mitromaras, “We are proud to extend our strong and solid collaboration with Lotterywest, an esteemed Lottery Operator with extreme contribution to the West Australian society. This extension represents the confidence on INTRALOT’s lottery technology, systems and support.”
Intralot was initially launched back in 1992 and is a premier gaming solutions supplier. They operate in 42 legal and regulated jurisdictions globally. Also, the company employs approximately 3,800 employees.
Lotterywest Solidifying Its Supplier Base
The recent contract extension with Intralot is the latest in a series of moves by Lotterwest to solidify its supplier base. Back in November, the company signed a contract extension with Jumbo Interactive. Jumbo Interactive provides online lottery services for companies and the extension was for 10 years.
Jumbo is providing a white-label platform to Lotterywest. For every transaction processed for Lotterywest, Jumbo receives a 9.5% service fee. The company also handles customer support for Lotterywest’s online lottery product.
Jumbo Interactive signs white label deal with .@lotterywesthttps://t.co/aK7ZBAnhja pic.twitter.com/lJ6XJekocr
— Gaming Intelligence (@GamingIntell) October 1, 2020
Jumbo Chief Executive Mike Veverka commented on the deal at the time, stating, “I am pleased that the Lotterywest Agreement has now been signed on time and on terms as anticipated.
This is a major achievement for Jumbo securing our first government client setting up a solid long-term partnership and providing strategic opportunities for Jumbo.”
Combined with the deal with Intralot, Lotterywest does not have to worry about changes to its services before 2026 at the earliest. Based on past history with Intralot, it is likely that Lotterywest will continue their contract past 2026. Of course, anything can happen as we are still trying to recover from the global pandemic.
Now is a Good Time for Companies to Lock Up Deals
It is not surprising to see Intralot lock up its contract with Lotterywest. That’s because many companies are seeing a significant loss of revenue due to the COVID-19 pandemic.
Now is a great time for companies like Lotterywest to try and lock up long-term contracts with companies looking to secure revenue. Intralot recently reported losses of revenue as great as 40%. Locking up revenue for future years is a top priority for companies.
This could result in some huge cost savings for companies. Australian online casinos and other companies are looking to spend less. Other companies are looking to accept less money in order to keep doors open. This could result in some financially advantageous contracts for online gambling companies.
That is also beneficial to the end-user. Companies that are able to lock up contracts are able to continue offering services. With the uncertainty of the global pandemic, companies that can provide a sense of security to their customers will have a better shot of surviving the pandemic than those that cannot. Intralot and Lotterywest will be able to continue providing customers the services they want during these trying times.