OLG takes next step to modernize lottery in Ontario

TORONTO, Dec. 14, 2012 /CNW/ - The Ontario Lottery and Gaming Corporation (OLG) today began the next step forward in modernizing the province's lottery industry by issuing a Request for Pre-Qualification (RFPQ). The purpose of the RFPQ is to pre-qualify service providers for the day-to-day operation of lottery in Ontario.

At this stage in the process, potential service providers are being asked to demonstrate their experience as it relates to the lottery business. This includes:

  • Success in developing customer driven growth strategies;
  • Ability to operate complex and dynamic businesses;
  • Access to the resources, tools and technology needed to operate a sustainable lottery business; and
  • Capacity to lead the transition of customers, retailers, employee and technology to a new operating model.

"By modernizing our lottery business, we will increase efficiencies, expand options for lottery sales, and introduce new games and innovation to the system," said Rod Phillips, OLG President and Chief Executive Officer. "We want to make playing the lottery more convenient and engaging for our customers."

Based on the responses it receives from the RPFQ, OLG will identify service providers eligible to receive and respond to the Request for Proposal (RFP), the next stage in OLG's procurement process for modernizing lottery.

Following the RFP, OLG will select a qualified service provider to be the Lottery Integrator, Technology Lead and Marketing and Sales Lead.

The service provider will be responsible for recommending strategies to maximize the growth and success of the lottery business, developing products and marketing plans, operations, and process and cost optimization. It will also serve as a single point of contact for OLG by being responsible for everything subcontractors do and ensuring they deliver on OLG's modernization requirements.

In the future, OLG will continue its role in the conduct, management and oversight of lottery. This includes setting the overall strategy for lottery, managing the market by approving channel strategies and approving products.

OLG will also continue to prevent and mitigate the effects of problem gambling through its Responsible Gambling program, which is recognized internationally by the World Lottery Association's certification program.

The issuance of this Lottery RFPQ follows a successful Request for Information (RFI) process, through which OLG received more than 30 submissions.

"We're very pleased with the level of interest in our business and the extent of the information provided to us through the RFI," said Phillips. "It's clear that there is a lot of interest in the opportunities Ontario has to offer when it comes to lottery."

OLG has two impartial advisors providing oversight on the integrity and fairness of the procurement process.

Once the modernization of lottery and gaming in Ontario is complete, OLG will have increased its net contribution to the province by $1.3 billion annually, while creating thousands of jobs and driving more than $3 billion in capital investment across Ontario.

Interested service providers must respond to the Lottery RFPQ by April 4, 2013.

OLG will continue to issue RFPQs for the modernization of gaming in Ontario. The first wave of gaming RFPQs was released on Friday, November 30, 2012.

All RFPQs will be available on MERX™ (www.merx.com/olg). MERX charges a fee to download this type of material.

Additional information is available in the media section at www.OLG.ca:

OLG is a provincial agency responsible for province-wide lottery games and gaming facilities. Since 1975, OLG lotteries, Casinos, Slots, and Resort Casinos have generated more than $36 billion for the benefit of the Province of Ontario. Gaming proceeds support Ontario's hospitals, amateur sport, recreational and cultural activities, communities, provincial priority programs such as health care and education, and local and provincial charities and non-profit organizations through the Ontario Trillium Foundation.

"Know Your Limit. Play Within it"

THE ONTARIO PROBLEM GAMBLING HELPLINE 1-888-230-3505
Disponible en français

  www.OLG.ca

Backgrounder

Lottery Request for Pre-Qualification

OLG has initiated the next phase of the procurement process to modernize the lottery in Ontario by issuing a Request for Pre-Qualification (RFPQ). The RFPQ will allow OLG to pre-qualify service providers for the day-to-day operation of lottery in Ontario.

Interested service providers must respond to the RFPQ by April 4, 2013. The RFPQ is available on MERXTM (http://www.merx.com/olg).

Background

In March 2012, OLG delivered a report to the Minister of Finance, outlining a proposal to modernize lottery and gaming in Ontario. The report contained three key recommendations:

  • Become more customer-focused
  • Select qualified service providers for specific day-to-day operations of Lottery and Gaming; and
  • Renew OLG's role in the conduct, management and oversight of Lottery and Gaming.

OLG's modernization of lottery and gaming in Ontario is underway and once complete, OLG will have increased its net contribution to the province by $1.3 billion annually, while creating thousands of jobs and driving more than $3 billion in capital investment across Ontario.

In the spring, OLG initiated a fair and transparent procurement process by releasing two Requests for Information (RFIs) — one for Gaming and one for Lottery — to solicit feedback from potential service providers.

OLG received more than 30 responses to its Lottery RFI from a wide range of organizations, including lottery operators, marketing firms, technology providers, suppliers and others.

Purpose of the Lottery Request for Pre-Qualification (RFPQ)

The RFPQ will help OLG determine the skills and abilities of potential service providers.

The RFPQ asks interested service providers to demonstrate experience as it relates to the lottery business, including:

  • Success developing customer driven growth strategies;
  • Ability to operate complex and dynamic businesses;
  • Access to the resources, tools and technology needed to operate a sustainable lottery business; and
  • Capacity to lead the transition of customers, retailers, employees and technology to a new operating model.

Interested service providers must also have submitted an application for registration with the Alcohol and Gaming Commission of Ontario (AGCO).

The RFPQ process will enable OLG's procurement department to identify qualified service providers to be eligible to receive and respond to the Request for Proposal (RFP) — the next stage in OLG's procurement process for modernizing lottery.

Lottery Service Provider

Following the RFP, OLG will select a qualified service provider to enter into an agreement with OLG to be the Lottery Integrator, Technology Lead and Marketing and Sales Lead.

The service provider will be responsible for recommending strategies to maximize the growth and success of the lottery business, developing products and marketing plans, operations, and process and cost optimization.

Subject to OLG's overall conduct and management of gaming activity, the service provider will also be responsible for the day-to-day operations of the lottery business, including:

  • Identifying innovative opportunities for the growth of lottery in Ontario
  • Acquiring all lottery-related equipment and terminals owned by OLG
  • Serving as a single point of contact for OLG in implementing lottery modernization
  • Developing future lottery IT architecture
  • Performing or subcontracting all lottery services
  • Assuming responsibility for the acts and omissions of its subcontractors
  • Assuming existing contracts
  • Complying with operations controls, as defined by OLG
  • Assuming existing employees in respect of the lottery business
  • Financing all of the activities noted above.

The service provider will be granted the exclusive right to operate lottery in Ontario for a term of 10 years with the possibility of extensions.

Modernizing the Lottery in Ontario

The modernization of OLG's lottery business has three goals:

  • Introduce a new sales channel for lottery products - by expanding options for sales to include multi-lane checkouts at major retail outlets (in grocery, drug and big box stores);
  • Enable further innovation of the lottery business - by allowing more rapid development and deployment of new lottery games, as well as increasing the capacity of the lottery network for non-lottery purposes; and
  • Increase operational efficiencies - by engaging a service provider in assuming the responsibility for the day-to-day operation and upgrade of its network of existing lottery terminals.

As new channels and technologies emerge, opportunities will arise to further meet customers' needs by improving the lottery playing experience by making it more entertaining and engaging.

OLG's Role within the Modernized Lottery

OLG will continue its role in the conduct, management and oversight and remain the "operating mind" behind the delivery of lottery in Ontario. This includes setting the overall strategy for lottery, and managing the market by approving sales channel strategies and products.

OLG will also continue to prevent and mitigate the effects of problem gambling through its Responsible Gambling program, which is recognized internationally by the World Lottery Association's certification program.

OLG will expect the service provider to recommend approaches to the operation of the lottery that would improve customer service, increase lottery revenue and/or increase net profit to the province.

What are the next steps?

Service providers pre-qualified through the RFPQ process will be invited to take part in the RFP stage of the procurement process. The successful service provider will be selected from this group.

OLG will issue the RFP for the modernization of lottery in 2013.

Disponible en français

  www.OLG.ca

SOURCE: OLG

For further information:

OLG Media Line
1.888.946.6716

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