PR – A renewed lottery agreement which guarantees continued support to sports, culture and national building activities has been signed.
Minister in the Ministry of Education, Youth, Sports, and Culture, Hon. Ron Redhead, on Wednesday announced the successful re-negotiation of a contract between the National Lotteries Authority (NLA) and the Canadian Bank Note Company (CBN), which will provide enhanced benefits for the Authority and the Government of Grenada.
Following the appointment of the Board in July 2022, Directors of the NLA began extensive negotiations with the CBN team, leading to significant updates to the terms of the agreement. “We are extremely pleased with the outcome of the re-negotiations and believe that the new terms will drive the NLA’s success in the coming years,” said Minister Redhead. “These updated provisions align with our vision of fairness, transparency, and delivering maximum value for the Authority and the Government.”
Minister Redhead is responsible for overseeing the NLA, which provides support funding for sports and cultural activities nationwide.
Key highlights of the re-negotiated contract are as follows:
Contract Extension Fee:
∙ Under the new terms, the total contract extension fee has been set at $15.1 million. This represents a significant increase from the previous negotiation conducted by the former Board of Directors, which secured a contract extension fee of $1.5 million. The revised contract extension fee reflects the improved value proposition provided by the NLA.
∙ One of the key achievements of the re-negotiation is the establishment of a fair and equitable profit-sharing ratio for the Video Lottery Terminal (VLT) operations. The NLA and CBN have agreed on a 50:50 split for profit sharing, ensuring a balanced distribution of earnings. The previous Board of Directors negotiated a significantly less favourable ratio of 5:95 (NLA:CBN). This update reflects the commitment of the current Board to optimise the benefits for the NLA and its stakeholders.
Contracted Period:
- The re-negotiated contract ensures a contracted period of less than 20 years, with an expiration date set for 2040. This revised timeframe offers increased flexibility for the NLA and allows for future adaptations to meet the evolving needs of the industry and stakeholders.
The NLA and CBN are confident that the re-negotiated terms will facilitate a mutually beneficial partnership, strengthening the lottery sector in Grenada, and supporting the Authority’s mandate to generate revenue for the Government’s social and developmental programmes.
The re-negotiated contract is anticipated to further strengthen the partnership between the NLA and CBN, ensuring a prosperous and sustainable future for the lottery industry in Grenada.
