Atlantic Lottery signs 8-year deal with IGT for video lottery system

LONDON - International Game Technology PLC (NYSE:IGT), a $3.2 billion market cap gaming technology leader with $2.4 billion in annual revenue, has secured an eight-year agreement to provide its cloud-based IntelligenEVO video lottery central system technology to Atlantic Lottery across Atlantic Canada, according to a press release statement issued on Wednesday.

The agreement includes options for multiple extensions and will make Atlantic Lottery the first World Lottery Association-affiliated operator to implement IGT’s next-generation central management system in a game-to-system distributed market.

The IntelligenEVO system offers enhanced security features, network availability, and responsible gaming functionalities. According to the company, the technology’s game-to-system and open API design optimizes data collection and delivery, allowing Atlantic Lottery to customize programs based on player needs.

"IGT’s IntelligenEVO is a scalable technology for the WLA market that is backed by decades of experience and operator feedback, and maximizes the benefits of real-time data, cloud-based technologies and in-depth analytics," said David Flinn, IGT SVP Canada, EMEA and LATAM, Gaming Sales.

Michael MacKinnon, Atlantic Lottery VP, Product, stated that the new technology would help "generate high player satisfaction and optimal network performance."

The implementation is expected to accelerate time-to-market for new offerings while providing Atlantic Lottery with access to player-focused functionality.

IGT describes itself as a global gaming leader with approximately 11,000 employees and operations in more than 100 jurisdictions worldwide. The company has maintained dividend payments for 11 consecutive years, with analysts expecting profitability growth this year. For detailed analysis and additional insights, check out the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks including IGT.

In other recent news, International Game Technology (IGT) reported first-quarter earnings that did not meet analyst expectations, with adjusted earnings per share at $0.09, falling short of the anticipated $0.27. Revenue for the quarter was $583 million, below the forecasted $636.61 million and marking a 12% decline compared to the previous year. The company attributed these results to lower U.S. multi-state jackpot activity and the timing of product sales. Consequently, IGT has lowered its full-year revenue and profit guidance, expecting revenue to be approximately $2.55 billion, which is under the previous outlook and analyst consensus of $2.573 billion.

Additionally, Stifel analysts have adjusted their price target for IGT stock to $20.00 from $22.00, while maintaining a Buy rating. This adjustment follows discussions about IGT’s recent Lotto contract win and digital growth opportunities. Despite concerns over high licensing fees and the economic benefits of the iLottery venture, Stifel remains optimistic about IGT’s broader market opportunities. The analysts highlighted potential positive catalysts, such as the anticipated return of capital from Gaming & Digital activities and possible share repurchases. Stifel’s analysis reflects a belief in IGT’s growth potential, despite the challenges faced in the digital expansion and online betting sectors.

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