CSP031085_Contract.pdf

State of Ohio Department of Administrative Services Scratch-off Lottery Ticket Products and Services – RFP #SRC0000027289

On behalf of the Ohio Lottery Commission RFP Version 11/21/24

A CONTRACT BETWEEN

THE OHIO DEPARTMENT OF ADMINISTRATIVE SERVICES

ON BEHALF OF THE

OHIO LOTTERY COMMISSION

AND

SCIENTIFIC GAMES LLC

This Contract (#CSP031085), which results from Request for Proposals #SRC0000027289 titled Scratch-off Lottery Ticket Products and Services (RFP), is between the State of Ohio, through the Department of Administrative Services, on behalf of the Ohio Lottery Commission, and Scientific Games LLC (Contractor).

This Contract is the result of agreed upon changes to the RFP including all exhibits and written amendments to this RFP and the Contractor's negotiated and accepted Proposal. It will also include any materials incorporated by reference in the above documents. The terms and conditions for this Contract are contained in Parts 2-4 of the RFP. If there are conflicting provisions between the documents that make up the Contract, the order of precedence for the documents is as follows:

1. This one-page Contract;

2. Contract Part 6;

3. This RFP, including all sections, parts, and exhibits, as amended; and

4. The Proposal dated 5/1/2025.

Once awarded, the term of the Contract will be from July 1, 2025 through June 30, 2035. The State may solely renew this Contract at its discretion for a period of one month. Any further renewals will be by mutual agreement between the Contractor and the State. The parties may renew this Contract for up to five years.

Any such renewal of all or part of the Contract is also subject to the satisfactory performance of the Contractor and the needs of the State of Ohio.

To show their agreement, the parties have executed this Contract as of the dates below.

SCIENTIFIC GAMES LLC STATE OF OHIO,

DEPARTMENT OF ADMINISTRATIVE SERVICES

By: _________________________________ By: ____________________________________

Name: John Schulz_________________________ Name: __________________________________

Title:President of Americas & Global Instant Product Title: Director

Part 6 – Mutually Agreed Upon Changes

The fully negotiated and agreed upon final version of the proposed exceptions or changes will be set forth in this Part 6 and become part of the Contract.

1. Scientific Games is awarded as Primary contractor.

2. The State does not accept the Contractor’s proposed warehouse and distribution location as submitted in their proposal under Part 1 – Scope of Work, Section G. Portfolio Management, Warehouse, Inside Sales and Distribution (Primary Contractor). The State and Contractor must mutually agree to the warehouse and distribution location at a future date. The location must be independent from the current gaming facility location and independent from the current Solon facility, unless the State and Contractor mutually agree otherwise. This location must be agreed upon with ample time to begin operation in State fiscal year 2028.

3. The State and Contractor agree to the following regarding Part 2 – Contract-Specific Terms and

Conditions, Section G. Liquidated Damages, 11. Telephone Ordering System or Inventory Control

System: In the event that the telephone system is non-functional and calls cannot be completed for a period exceeding four consecutive hours, such period much be considered a service outage. For each full or partial calendar day that the service outages persists beyond the initial four hour period, the Lottery may assess liquidated damages in the amount of $5,000 per day. This provision will not apply to outages caused by events of force majeure.

4. The State and Contractor agree to the following regarding Part 2 – Contract-Specific Terms and

Conditions, Section G. Liquidated Damages, 12. Third Party Integrations: In the event the Contractor fails to complete the integration by the mutually agreed upon date, the Lottery may assess damages in the amount of up to $100,000 per calendar day for each day beyond the integration date until the integration is completed and fully operational, unless otherwise agreed in writing. This provision will not apply to delays caused by force majeure events or delays attributable solely to the actions or omissions of the Lottery.

5. Part 5 – Cost Proposal, Base Specification Pricing, Percent of Sales Rate is applied as follows:

a. Print Services: applied against net sales of Scientific Games’ printed games

b. Warehouse, Inside sales, Portfolio Management and Distribution: applied against net sales of all games

6. Part 5 – Cost Proposal, A. Primary Contractor Cost Proposal, 1. Base Specifications, a. Percent of

Sales is removed and replaced with the following table. No other changes are made to the

Contractor’s Part 5 – Cost Proposal, unless stated herein.

FY

Print Services

% of Sales Rate

Warehouse, Inside sales, Portfolio Management and

Distribution % of Sales Rate

2026 0.5800% N/A

2027 0.5800% N/A

2028 0.5751% 0.4132%

2029 0.5751% 0.4132%

2030 0.5751% 0.4132%

2031 0.5751% 0.4132%

2032 0.5751% 0.4132%

2033 0.5751% 0.4132%

2034 0.5751% 0.4132%

2035 0.5751% 0.4132%

7. Part 5 – Cost Proposal, A. Primary Contractor Cost Proposal, Primary Contractor Pricing for Special

Ticket Features/Services – Offered Options, Gigantix® is removed and replaced with the below table.

No other changes are made to the Contractor’s Part 5 – Cost Proposal, unless stated herein.

Gigantix® Order Quantity 30 Tickets Per Pack 50 Tickets Per Pack

Gigantix®, 10” x 7.78”, 5 Million Order Quantity 1.90% 1.73%

Gigantix®, 10” x 7.78”, 4 Million Order Quantity 1.96% 1.79%

Gigantix®, 10” x 7.78”, 3 Million Order Quantity 2.01% 1.84%

Gigantix®, 10” x 7.78”, 2 Million Order Quantity 2.11% 1.94%

Gigantix®, 10” x 7.78”, 1 Million Order Quantity 2.47% 2.30%

The percentages listed in the table above are additional to the base rate.