FOR IMMEDIATE RELEASE

March 2nd, 2005

COMMONWEALTH OF PENNSYLVANIA

Pennsylvania Gaming Control Board
P.O. Box 69060
Harrisburg, PA 17106-9060

CONTACT

Doug Harbach or Richard McGarvey (717) 346-8321

PA Department of Revenue Selects Gtech Corporation To Provide Central Control Computer System For Slots Gaming

HARRISBURG: Pennsylvania Secretary of Revenue Gregory C. Fajt today announced that he has selected GTECH Corporation to supply a central control computer system that will monitor slots gaming in Pennsylvania.

GTECH, based in West Greenwich, R.I., was chosen following an open and competitive procurement process. Fajt said the company was recommended by a committee of Revenue Department employees that has been analyzing vendor proposals since August 2004. The committee determined that GTECH’s proposal offered the best combination of experience in the gaming industry, technical expertise and cost.

“GTECH is a global leader in gaming technology,” Fajt said. “The company’s experience operating central control computer systems in other jurisdictions, along with its technical expertise, will give Pennsylvania the state-of-the-art tools it will need to monitor and control slots gaming.”

Fajt said the Department will immediately begin negotiations with GTECH on a five-year contract. Fajt said GTECH will be paid a percentage of slots gaming gross terminal revenues to supply and operate the central control computer. Although the cost of the contract is still subject to negotiation, he said the Department estimates that annual costs will not exceed $6.3 million once all 14 slots venues are fully operational. The Department will pay some equipment costs up front, but Fajt said most of the payments to GTECH will not occur until slots gaming facilities begin operations.

The central control computer system provided by GTECH will be capable of supporting up to 61,000 slot machines throughout the state. It will allow state regulators to monitor individual slot machines, in real time, to ensure the integrity of slots gaming and to ensure that state taxes on gaming are collected.

The central control system will also:

  • Use a widely accepted gaming industry protocol to facilitate the ability of slot machine manufacturers to communicate with the statewide system. The system will be capable of supporting additional protocols if they become available.
  • Support in-house and wide area progressive slot machines as approved by the Pennsylvania Gaming Control Board (GCB).
  • Permit slot machine licensees to install independent player tracking systems and cashless technology as approved by the GCB.
  • Not alter the statistical awards of slot machine games, as designed by slot machine manufacturers and as approved by the GCB.
  • Provide redundancy so that each component of the network will be capable of operating independently if any component of the network, including the CCS, fails or cannot be operated.
  • Meet all reporting and control requirements required by the Department and the GCB.

Under Act 71, the Pennsylvania Race Horse Development and Gaming Act, the Department of Revenue was exempted from following normal state procurement rules to obtain the central control computer system. Fajt said the Department developed a streamlined procurement process to ensure that a wide range of potential vendors could be considered. He said Requests for Information posted on the Department’s Web site in August attracted 10 potential vendors. One of the potential vendors was eliminated almost immediately, but nine others answered a series of detailed questions as the Department committee conducted its review. GTECH is a leading global information technology company with more than $1 billion in revenues and employs more than 5,400 people in over 50 countries. It operates central control computer systems in a number of jurisdictions, including Oregon, Rhode Island, Sweden and Switzerland.