GTECH and Scientific Games On In New Jersey


The New Jersey Treasury Department has issued a notice of intent to award a contract to Northstar New Jersey Lottery Group (Northstar).

The joint venture is comprised of Scientific Games International, Lottomatica's GTECH Corporation and OSI LTT NJ Holdings Inc. which is an indirect subsidiary of OMERS Administration Corporation, the administrator of the Ontario Municipal Employees Retirement System pension funds (OMERS).

The Scientific Games subsidiary will now own approximately 18 percent of the Northstar NJ joint venture, while an entity comprised of GTECH and OSI will own the other 82 percent.

Scientific Games and GTECH will provide Northstar NJ with instant lottery games, lottery systems and services along with a player loyalty and rewards program.

Northstar NJ will provide a wide range of specialized services to the Lottery focusing on its marketing, advertising and sales functions, and will include support for lottery game development. All of these activities will be subject to control and oversight by the Lottery and will run through to end June 2029.

Under the terms of the contract Northstar NJ will be entitled to receive incentive payments should the Lottery's net income exceed specified target levels, subject to a cap of 5 percent of the applicable year's net income.

On the reverse, Northstar NJ will be responsible for payments to the State should the Lottery's net income levels set forth in Northstar NJ's successful bid not be achieved, subject to a cap of 2 percent of the applicable year's net income and a $20 million shortfall payment credit.

Northstar NJ will also be required to make a hefty $120 million payment to the State upon execution of the agreement.

"We look forward to proving how meaningful a commercial lottery business model can be to the State of New Jersey and its residents. We are proud to continue to be a part of the Lottery's progressive efforts in establishing itself as an industry leader in terms of both performance and innovation," said A. Lorne Weil, Chairman and Chief Executive Officer of Scientific Games.

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