LANSING, Mich. (AP) — The Michigan Lottery has extended its contract with a company that helps run Powerball, Mega Millions and other lottery games in the state.
The contract with GTECH Corp. now will run through mid-January of 2017. The initial six-year deal was scheduled to expire in January 2015.
"The Michigan Lottery games supported by GTECH's products and services are very popular with our players and provide a significant share of the revenue that we contribute each year to the state School Aid Fund," lottery spokesman Jeff Holyfield said in a statement Friday.
Under terms of the contract, the bulk of the company's compensation is based on a percentage of sales. The contract extension has an estimated value of about $53 million. GTECH is based in Providence, R.I., and has worked with the state since 1988.
The lottery contributed about $734 million to Michigan's K-12 schools fund in the last fiscal year and about $5.2 billion over the past seven years.
"This contract extension recognizes that GTECH and its team have proven they share our commitment to provide excellent service to our players and the 11,000 retailers that sell Michigan Lottery products across the state," Holyfield said. "It also provides value to the Lottery and the state by extending for two years the competitive pricing structure put in place in 2008 for these popular products and services."