VLT Locations & Distribution
The marketing and distribution of VLTs will be conducted in partnership with the Government. First, appropriate locations recommended by SGVI can initially be approved by the Government. Second, the Government and SGVI can jointly launch a public awareness/public relations campaign to promote VLTs as desired by the Government. Third, after installation of VLTs, productivity is tracked at the VLT level, with additional or substitution of VLTs taking place with Government approval as dictated by game play data and revenue productivity.
Rate of Distribution
The rate of distribution of VLTs is subject to a number of factors, including (i) the speed of which legally authorized locations are approved, (ii) the marketing desires of the Government, (iii) public acceptance of video lottery and gaming generally, (iv) overall economic factors, and (v) the eradication of unregulated slots, in the event they exist within a jurisdiction. Procurement and installation of VLTs by SGVI requires only a matter of weeks.
The Government and SGVI may agree SGVI should operate its own VLT location(s) known as Entertainment Centers. The development of Entertainment Centers is different than the distribution of VLTs to other types of locations. Entertainment Centers are developed by SGVI and are exclusively dedicated to video lottery as well as restaurant and bar amenities. Entertainment Centers are located near popular tourist destinations with SGVI acting as the video lottery Retailer. Entertainment Centers generally house more VLTs than a typical VLT Retailer, have several local employees and can contribute quickly to revenue growth from video lottery operations.