The N.C. Education Lottery Commission on Wednesday approved new contracts for a new gaming system and instant ticket services that will allow the lottery to continue to grow by offering the latest technology in the lottery industry to those who enjoy lottery games.

“Thanks to a fair, thorough and competitive procurement process, we got a good deal that should allow us to keep our costs low and produce the best results for North Carolina and education,” said Alice Garland, executive director of the N.C. Education Lottery.

The costs of new contracts would be $26.5 million, a savings of $6.3 million, if applied to estimates of sales for fiscal year 2017. If the current contracts applied to the same time period, the cost would be $32.8 million.

The nine-member commission reviewed and unanimously approved two recommendations for award of the contracts. IGT of Providence, Rhode Island was awarded the gaming system contract and Scientific Games of Alpharetta, Ga. was awarded the instant ticket and related services contract. The awards are subject to additional negotiations between the lottery and the apparent successful vendors and the review and approval of the State Attorney General’s Office.

The contracts are the largest that the lottery has with private vendors. The procurement process began in April 2014 and Request for Proposals (RFPs) were received in August and September of 2015. Two internal lottery teams evaluated the proposals with the final recommendations made to the commission by the executive director today.

The new contracts are scheduled to begin April 1, 2017 as the current contracts expire. The length of the gaming system contract is 10 years, but it is possible for the vendor to gain a five-year extension if upgrades and improvements to the gaming system are made by the 8th year. The length of the instant ticket printing contract is eight years with the possibility of a two-year extension.

As with most lotteries, the compensation for the services are determined as a percentage of overall lottery ticket sales. The gaming systems contract will provide IGT a compensation rate of 1.15% of instant ticket sales and 0.360% for draw game sales. Scientific Games will receive 0.669% of instant ticket sales for its work in the printing, storage and distribution of instant tickets.

“We’re excited about the prospects of getting new technology to support our games and ticket sales,” said Garland. “This will allow us to work more effectively and efficiently with retailers, provide more engaging games for players, and continue our record of raising additional dollars each year for the good cause we serve.”