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).
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:
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.
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:
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.
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:
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.
The modernization of OLG’s lottery business has three goals:
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 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.
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.
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