Under the deal, Pollard Banknote will provide at least 70% of scratch games for the Minnesota Lottery each year. The estimated value of the deal, with optional extensions, is approximately $28m. Pollard Banknote has been the primary partner for scratch games and related services for the Minnesota Lottery since 2007.
Pollard Banknote senior director and sales and marketing director, Byron Peterson, expressed excitement about being chosen as the primary partner for scratch games once again. He highlighted their efforts in providing top-notch scratch games and retail initiatives for Minnesota players.
Minnesota Lottery executive director Adam Prock expressed satisfaction with the collaboration and their ability to offer engaging scratch games to players.
Pollard Banknote recently faced challenges in their instant tickets business during Q2 of their 2022 financial year, with ongoing price increases impacting operations in Q3 and Q4. Instant tickets remain their largest business, but rising prices of inputs such as paper, ink, and freight have led to increased spending. To offset costs, Pollard Banknote plans to increase selling prices during contract extensions and requests for proposals.
The company also noted that instant ticket production volume in Q2 fell short of the budget due to difficulties in recruiting and retaining entry-level staff, increased staffing challenges with call-outs and absences, and unexpected mechanical and production issues.
