IGT To Replace Quebec Lottery VLTs
A new deal signed between International Gaming Technology (IGT) and Loto Quebec, will see the former replace 7,200 video lottery terminals across the province.
IGT said it has been awarded over 56% of the replacement market for Loto Quebec, after the lottery group was given permission by the provincial government to update 12,000 outdated gambling machines in 2009.
According to Canadian gambling experts, this is by far one of the most valuable replacement deals in the country's history, although a dollar value has not yet been given on the deal.
Investors could expect the deal to be worth around 2c per share on their annual statements.
The replacement of the gaming machines in Quebec should begin next year, according to IGT.
The slot machine type games are connected to a central server where all payouts and jackpots are determined.
IGT to Sign Other Canadian Lottery Deals
The deal with Loto Quebec is not the only contract the Nevada based IGT hopes to sign with a Canadian entity.
Alberta is set to award a replacement contract for around 5,000 games this year, and IGT is expected to earn a good chunk of that market. It is believed that other Canadian provinces will follow suit, although not to such a large extent.
Deal with Entraction Nearing Closure
IGT also announced that its deal to acquire the Swedish online gambling group, Entraction, is coming to a closure, after it showed that it met all the conditions and requirements to make the purchase.
IGT spent over $115 million to buy one of the largest online poker networks in the industry. Entraction boasts over 4 million registered players through 60 operational partners. The group generated a whopping $56 million in revenue last year through its poker, bingo, casino and sports betting arms.
