iLottery System, Services, and Support

The Virginia Lottery is seeking a vendor partner through Request for Proposals #13179MG to provide a comprehensive, best-in-class iLottery System, Services, and Support solution designed to maintain Virginia's position as the highest-grossing U.S. iLottery program while driving continued annual growth in sales and profits, expanding gaming market share against competing online options, and enhancing player acquisition and retention. The procurement encompasses a complete online lottery platform supporting all existing iLottery functionality, including player account management, eInstant games, draw games, payment processing and withdrawals, customer engagement, rewards programs, and responsible gaming controls across web and mobile platforms. The vendor must provide a custom-designed system (not an existing turn-key solution) that meets approximately 350 mandatory technical, operational, and service delivery requirements spanning system infrastructure, security protocols, testing and quality assurance, data integrations, retail sales support, fraud prevention, accessibility compliance, payment processing, multi-channel customer service (24/7 availability in English and Spanish), and specialized features such as an online claim center and promotional capabilities. Critical deliverables include support for integration with multiple game providers (IWG, NeoGames, Inspired, EQL, Pollard, BRSL, SGI, AGS, and Allodium), development of new draw games such as Virginia Lotto, primary and backup U.S.-based data centers with 99.99% uptime availability (excluding 36 hours of scheduled monthly maintenance), annual SOC II Type 2 audit certification, and comprehensive reporting on service level performance, system patching, and vulnerability scanning. Evaluation will be conducted across seven criteria categories totaling 4,265 points: mandatory requirements (1,085 points), solution approach and capability (1,100 points), strategic growth recommendations (550 points), implementation and support (200 points), case studies (450 points), small, women-owned, and minority (SWaM) business participation (450 points), and pricing (430 points). Proposals must be submitted electronically through eVA and in paper format (one original plus six copies) by July 28, 2026, at 3:30 PM EST, with an estimated contract award in the second quarter of 2027 and a contract term consisting of a five-year base period with up to three optional three-year renewal periods.

The procurement includes a SWaM participation evaluation component worth 450 points, indicating Virginia's commitment to supporting small, women-owned, and minority-owned enterprises, though specific set-asides or restrictions on eligible organization types are not detailed in the available materials. The current incumbent contractor is NeoPollard Interactive (NPi), which operates the existing platform that generated $3.43 billion in eInstant sales and $408.1 million in gross gaming revenue in fiscal year 2025, serving approximately 396,199 unique bettors across multiple digital channels; however, the Virginia Lottery is not obligated to select the incumbent and has explicitly stated it is not constrained to existing solutions. The successful vendor must integrate with the existing Virginia Lottery infrastructure and support current operations including the ARMICS iLottery platform, existing game titles (Western Wins, The Lamp, and Spectacular Seasons), established payment channels (Visa, PayPal, ACH, and ApplePay), and the existing rewards program with over 620,000 cumulative members. All system costs including geolocation services, payment processing, identity verification, rewards platform functionality, information security infrastructure, and marketing platforms must be included within the proposed pricing structure based on a percentage of Net Gaming Revenue (NGR) for eInstant games and percentage of gross sales for draw-based games, with estimated sales projections ranging from $4.27 billion to $5.80 billion in eInstant sales and $175 million to $210 million in draw game sales across the contract term. Vendors must submit a Proposal Bond equal to five percent of the total price proposal and a Protest Bond of no less than five percent, with the vendor responsible for acquiring and maintaining all necessary hardware, software, and telecommunications infrastructure at no cost to the Virginia Lottery while maintaining cyber security liability insurance of $5,000,000 per occurrence and ensuring all lottery content remains stored exclusively within the continental United States with daily off-site backups.