NIGP 95866: Lottery Management Services

NIGP 95866 Lottery Management Services, an Item code, encompasses the full suite of operational and technology services state and local governments contract to run their lottery programs—gaming systems, ticket production and distribution, draw and scratch-game management, retail point-of-sale terminals, claims processing, player mobile apps, call center support, and reporting infrastructure. The Texas Department of Licensing and Regulation (TDLR) issued the most recent major solicitation under this code on June 26, 2026, an RFP for a comprehensive Lottery Operator to manage the Texas Lottery Program through August 31, 2038, including approximately twenty months of system conversion and implementation services. State lottery agencies are the primary issuing bodies under this code, given the specialized regulatory and operational requirements of state-sanctioned gaming.

The code sees activity primarily in states with established lottery programs; Texas represents the current largest-scale opportunity with $7.9 billion in annual lottery sales (fiscal year 2025). The TDLR procurement is structured as a single-vendor, end-to-end engagement requiring the successful proposer to demonstrate financial stability, past lottery-operations experience, and qualified personnel, with evaluation emphasizing price, quality, past performance, and good-faith HUB subcontracting effort. The contract includes substantial performance bonding ($20 million), insurance requirements (commercial general, professional liability, crime, cyber, and umbrella coverage with coverage limits ranging from $2 million to $10 million), and a liquidated-damages schedule with penalties up to $100,000 daily for system failures. Proposal submission was due July 27, 2026, with oral presentations and site visits scheduled for October 7–23, 2026, and announcement of the apparent successful proposer on or before November 2, 2026. HUB participation carries mandatory subcontracting plan requirements and dedicated workshops scheduled during the proposal window.