GTECH venture signs 15-year service deal with N.J. Lottery

The New Jersey Lottery has commissioned Northstar New Jersey Lottery Group for a 15-year services agreement. Northstar is a joint venture comprised of GTECH Corp. and Scientific Games New Jersey. More

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GTECH venture signs 15-year service deal with N.J. Lottery

Posted 6/26/13

PROVIDENCE – The New Jersey Lottery has commissioned Northstar New Jersey Lottery Group for a 15-year services agreement. Northstar is a joint venture comprised of GTECH Corp. and Scientific Games New Jersey, a wholly-owned subsidiary of Scientific Games International Inc., and OSI LTT NJ Grantor Trust.

Full services are expected to take effect in October, though the transition will begin immediately. According to the press release, the agreement will extend to June 2029.

“We are looking forward to our new partnership with Northstar New Jersey. … The New Jersey Lottery is a top-performing lottery,” Carole Hedinger, New Jersey Lottery executive director, said in prepared remarks, “This partnership will help us achieve even greater success for New Jersey education, institutions and its citizens.”

Following the agreement, Northstar will administer various functions for the New Jersey Lottery, including marketing and sales, although the state lottery will continue to oversee major decisions.

“[Northstar] has developed a comprehensive business plan to generate approximately $1 billion of additional net income for the state of New Jersey over the first five years of the base Services Agreement,” Jaymin B. Patel, chairman of Northstar and president and CEO of GTECH Americas, said in a prepared statement.

“We are confident we will be able to deliver on our commitments and fulfill the state’s objectives through a management team with deep New Jersey and global lottery-industry experience, and an overall business plan to drive value for the state of New Jersey and its citizens,” added Patel.

Northstar will be reimbursed by the state for subcontractor fees as well as for select manager expenses. Additionally, on a performance-level basis, Northstar will potentially earn incentive compensation, which at its maximum amount would be equivalent to 5 percent of the actual net income of the state.

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