The state Lottery Commission this morning agreed to a deal that would pave the way for vending machines that would sell instant games as well as Powerball tickets.
Currently, the lottery uses vending machines to sell instant tickets. The deal would allow the lottery to set up machines that would allow players to buy Powerball tickets as well as the games that draw three, four or five digits.
The machines are intended to help extend the lottery's presence into chain stores that have been reluctant to sell tickets. Stores such as CVS, Dollar General and Wal-Mart do not currently sell lottery tickets.
"They're asking to see a more convenient business model," said Lottery executive director Tom Shaheen.
Players who use the machines would have to insert a drivers license to prove they are 18. Shaheen said the machines dispense the same tickets that would otherwise be purchased behind a counter.
"These are not video machines. They're not interactive by any means," Shaheen told the commission Tuesday morning.
Buying the machines would have cost the state as much as $20 million. Instead the lottery will have them provided at no charge in exchange for extending by four years its contract with GTECH, the company that handles ticket printing and logistics for the state lottery.
More after the jump.
—————
GTECH is paid on a percentage of total sales, and the company figures the machines would lead to more ticket sales, Shaheen said. The rate, 1.599 percent of sales, is one of the better rates among U.S. lotteries, he said.
The extension would bring GTECH's contract to 11 years. The deal would also require GTECH to provide 3,200 terminals that would be installed in retail outlets. The terminals feature a monitor that would allow lottery officials to remotely update jackpot information as well as display marketing messages.
Currently, the lottery relies on convenience store owners, often with dry-erase markers to change jackpot information. The lottery currently sells tickets through 6,045 retailers.
The first half of vending machines, which must now be manufactured, are due in January.
Blog RSS feed
Re: Lottery sees green in vending
The Internet, n. Etymology: Middle F U, from the regular modern F U, from the lot where you don't matter, but pretend real darn hard. ha, ha -from the Anglish.