Gtech, the name chosen by the (now ex) Lottomatica to further expand abroad, has been awarded the management of the New Jersey lottery for 15 years through the subsidiary Northstar New Jersey Lottery Group.
The contract signed with the US State Lottery will run through June 30, 2029 and provides for the provision of a broad range of marketing and sales and related activities under the control and supervision of the licensing authority as far as it affects all major business decisions.
Northstar NJ has delivered a business plan capable of generating approximately $1 billion in increased revenue for the State of New Jersey over the first five years of the contract effective July 1, 2014.
The stipulated agreements allow Gtech to participate in the net profit of the New Jersey Lottery if the latter exceeds the basic threshold established for the year, among other things to a variable extent based on the quality of the performance recorded. However, it risks a penalty if, in a certain year, it does not reach the level of net profit guaranteed during the tender procedure.
Northstar NJ has paid the State of New Jersey $120 million and has committed to transfer 30 percent of its lottery ticket sales annually to state entities and public support for education.
