HomePublicationsNewsletter ArchiveVolume 19Issue 5State Lottery Begins Review Process for Online Sales Development Contractor

In an effort to transition into the online market, the Michigan Bureau of State Lottery (“Lottery”) has issued an RFP seeking a partner to develop on online lottery sales program. Submissions for the RFP, which are due by March 26, 2013, are in the process of being reviewed and the lottery is seeking to award the contract by the mid-May.

According to the RFP, the Lottery is seeking contractors “for the development, implementation, operational support, and maintenance of a Michigan Lottery iSystem…and the development and integration of digital versions of existing lottery games.”

The description also notes that “[t]he Lottery envisions iLottery to be rolled out broadly into various distribution channels (e.g. web, mobile app, mobile web, tablet, social, etc.) in order to maximize consumer participation, convenience and satisfaction.”

Submissions to the RFP are currently being reviewed, with a scheduled award date for the winning bid on May 17, 2013. The project will include configuring the iLottery system, establishing primary and backup data centers, developing testing mechanisms, and network development. Phase 1 of the project is expected to occur in January of 2014. Once operational, patrons must establish an account that will verify their age and residency prior to allowing purchases of Lottery games or products.

On September 20, 2011, in response to inquiries from the Illinois and New York lotteries, the US Department of Justice issued a memorandum that concluded that federal law does not prohibit online lottery sales to in-state adults. Since the opinion, state lotteries have begun exploring the possibility of offering online lottery games and, in March of 2012, Illinois became the first state to offer online lottery sale.

 

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