Lottery Terminal Upgrade Crisis Averted
August 2, 2013 – John Musgrave, director of the West Virginia Lottery, announced Thursday that the Lottery Commission had come to an agreement with Scientific Games International that will allow the Lottery to avoid a costly upgrade of its central computer system.
The central computer system controls all of the video lottery terminals in the state, about 16,000 according to an estimate in The Republic, and has been in place since 2006.
Scientific Games said last fall they would be replacing the system at the end of 2015, but was met with strong objections from retailers, who would have to upgrade or replace their systems as well.
Retailers said the upgrades could cost as much as $3,000 per machine, and new machines could cost up to $30,000.
In 2011, the Lottery collected almost $70 million from retailers for 10-year licenses to operate the video terminals, adding to their concerns about costs of a system overhaul only two years later.
“This agreement will maximize the lifespan of our system and ultimately save both the state and Limited Video Lottery operators and retailers from the very costly process of making a system change at an earlier date,” Musgrave said.