Slot makers IGT and Bally win contracts to provide games to Canadian lotteries

Canadian lotteries are providing Nevada’s slot machine industry with some much-needed sales opportunities.

International Game Technology signed a deal recently with Loto-Québec to supply its online gaming site, Espace Jeux, with interactive versions of the slot machine maker’s top-performing games.

During the first phase, IGT will provide Loto-Québec access to Cleopatra, Wheel of Fortune – Hollywood Edition, Monopoly with Pass Go Bonus and Clue. The games will be hosted on the Loto-Québec servers in Montreal.

“Convergence is crucial to the future of North American casino gaming,” IGT executive vice president of emerging businesses Robert Melendres. “The addition of Loto-Québec as an interactive business-to-business partner is further proof of our commitment to the North American online and mobile market.”

A second phase will integrate the IGT Casino remote game server, which will allow for another 16 of the online games that will be developed in Canadian French to be available on the Espace Jeux site.

Meanwhile, the Atlantic Lottery Corp. — which is the gaming operator for New Brunswick, Newfoundland, Nova Scotia and Prince Edward Island — announced it was awarding its contract for new Video Lottery Terminals to four companies, including IGT and Bally Technologies, Inc.

Roth Capital Partners gaming analyst Todd Eilers told investors IGT was expected to receive 28 percent of the contract while Bally would supply 28 percent of the games.

“We look for Canadian VLT shipments to help boost the North American replacement cycle in calendar year 2012 and 2013,” Eilers said.

In addition to the Atlantic Lottery and Loto-Québec, government lotteries in Alberta, Saskatchewan and Manitoba are replacing older machines.

IGT and rival slot machine maker Spielo have each won pieces of previously announced Canadian lottery contracts. The Atlantic Lottery contract was the first replacement deal won by Bally. Notable suppliers not selected for the Atlantic Lottery replacement order include WMS Industries and Aristocrat Technologies, both of which won a portion of the Alberta replacement contract.

“We continue to highlight IGT as the biggest beneficiary of Canadian VLT replacement contracts,” Eilers said.