A 10-year, $12.2 million (£8.7 million) contract with profit share clauses has been signed between the Irish Horseracing Authority (IHA) and the US company Autotote, which will see the introduction of a new wagering computer system to the IHA's subsidiary, Tote Ireland. The contract for the central wagering system - with 300 wagering terminals - and for ongoing maintenance and operating services was expected to generate revenues amounting to at least $12.2 million between April 1999 and April 2009, Autotote said.

In a profit-sharing scheme, the US company will also assist the IHA in its marketing and operations programmes "based on North American practices". It will take a cut in the generated wagering increases and cost savings. Mr Noel Ryan, the IHA chief executive, said Autotote had been chosen because of the quality of its equipment and services. The new system will be based at Autotote's existing facility in Ballymahon, Co Longford, where about 60 jobs are expected to be created. The IHA, which owns and operates major Irish racecourses and is part Government-funded, is making an initial $2.5 million payment followed by $8.1 million over the 10 years of the contract. Further $1.6 million payments are scheduled to be paid between 1999 and 2004 on the attainment of specified profits.

Through its subsidiaries, Tote Ireland and Tote Arena, the IHA runs a totalisator betting service and on-course betting shops. Last year it made a profit of over £1 million.

In January 1997, the IHA published a five-year strategic plan setting out its aims to establish a high street Tote business by next year, and reducing the Tote's operating costs from 18.4 per cent of turnover to 12 per cent by 2001, and to 10 per cent thereafter. An Irish satellite racing channel is also planned, through the upgrading of the quality of close-circuit pictures.

Last April the IHA submitted the plan to the Minister for Agriculture and Food, Mr Walsh, to sign the deal with Autotote which will see the Delaware company introducing the equipment for receiving satellite pictures to designated betting shops.

Autotote reported a second quarter loss of $2 million in May.