Lottery Seeks Proposals For New Gaming System Contract

January 10, 2007 

ALBUQUERQUE – The New Mexico Lottery Authority has issued a formal request for proposals (RFP) for its lottery gaming system and related products and services, inviting vendors to submit proposals for a contract that begins in November 2008.  The outcome from this RFP is expected to be a contract that provides a significant cost savings for the Lottery resulting in more revenues for the Lottery’s beneficiary, the Legislative Lottery Scholarship program.

“We are in a great position to increase revenue as a result of this project,” said Lottery CEO Tom Romero.  “We are no longer a start-up Lottery, the cost of the technology necessary for operating a lottery has decreased significantly and there are more vendors in the lottery industry providing these types of services than during the New Mexico Lottery start-up or in 2002 when the contract was renegotiated.”

The RFP requests proposals from vendors with lottery experience to provide a new computer gaming system, retailer terminals and related products and services that allow players to purchase and validate New Mexico Lottery tickets at approximately 1,100 retail locations statewide.

The issuance of the RFP is the result of an 18-month process by a committee composed of key staff members from various departments within the Lottery.  The committee analyzed current lottery operations, new products and trends in the lottery industry and reviewed a number of similar RFPs from other US lotteries.  They developed the 250-page RFP with the advice and assistance of Batelle, a company with extensive expertise in the lottery industry.

A process has been outlined by the Lottery, beginning with the issuance of the RFP and culminating with the new contract taking effect.  Proposal submissions are due by April 5, followed by reviews, presentations and evaluations, which will occur before the Lottery Authority board of directors approves the successful vendor at their June meeting.  The contract will then be executed and the process for converting the Lottery from its present gaming system to the new gaming system will then begin.  The full conversion to the new gaming system is expected to be completed no later than November 20, 2008.

The Lottery’s online gaming vendor since October 1996 has been GTECH.  That contract was renegotiated in 2002 by former New Mexico Lottery CEO, Tom Shaheen.  It expires November 20, 2008, and cannot be further extended.

Through the end of November, more than $300 million in Lottery profits have been transferred to New Mexico public education.  Of that, more than $233 million has been set aside for the Legislative Lottery Scholarship program, which has already helped more than 43,000 New Mexico college students.  The remainder, more than $66.5 million, has helped with school repairs and construction for grades K-12 at 61 school districts.  All Lottery profits are now used for Legislative Lottery Scholarships.