Scientific Games And Hasbro Expand License Deals To Include New Channels, Brands And Territories Agreements Include Perennial Player Favorite MONOPOLY Brand
NEW YORK and PAWTUCKET, R.I., Jan. 9, 2014 /PRNewswire/ -- Scientific Games Corporation (Nasdaq: SGMS) and Hasbro, Inc. (Nasdaq: HAS) today announced the successful execution of amendments to their long-term licensing agreements. The amended agreements provide Scientific Games with access to new channels of distribution, additional brands and extended geographic territories. The amendments expand the existing Scientific Games lottery and WMS Gaming slot machine license agreements to expand the brands for real-money internet wagering and to now include many Hasbro brands in social casino gaming channels of distribution. The agreements feature a number of popular Hasbro brands, including the MONOPOLY brand, one of the most well-recognized and successful licensed gaming entertainment brands in the world. The duration of these licensing agreements has also been extended from 2017 through 2020, with a potential additional three-year extension.
"Expanding our licensing agreements and working more comprehensively with one of our most valued licensees allows us to build on our strong brand presence in the lottery and casino gaming world," said Mark Blecher, Senior Vice President, Digital Gaming and Corporate Development at Hasbro. "We've enjoyed a long and mutually rewarding relationship with both Scientific Games and WMS and their combination presents us with exciting opportunities as we centralize key brands with one licensee across multiple gaming distribution channels."
WMS and Scientific Games have independently had portfolio licensing agreements with Hasbro since 1997 and 2003, respectively. The MONOPOLY brand has been the number one licensed brand in the lottery industry and among the top licensed brands in slot machines during the course of these licenses. Under the expanded license agreements, Scientific Games has secured the rights to license a number of Hasbro brands, including the MONOPOLY brand, in the real-money internet wagering and social casino gaming channels of distribution. Scientific Games will gain access to additional Hasbro brands in these channels over the term of the agreement. Scientific Games has also secured the rights to license seven additional Hasbro brands for its slot machine portfolio and expanded the territories for its lottery licensing rights.
"We know the importance of convergence in today's marketing environment, so we are gratified to expand our relationship with Hasbro and leverage opportunities that will arise from employing Hasbro brands with strong consumer appeal across multiple channels simultaneously," said Steve Saferin, President, Properties Group and Chief Creative Officer for Scientific Games. "The acquisition of WMS has enabled Scientific Games to extend and expand its licenses with Hasbro and to create a one-stop solution for lottery, casino and online gaming for gaming operators."
About Scientific Games
Scientific Games Corporation is a leading developer of technology-based products and services and associated content for worldwide gaming and lottery markets. The Company's portfolio includes instant and draw-based lottery games; electronic gaming machines and game content; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and social, mobile and interactive content and services. For more information, please visit: www.scientificgames.com.
About Hasbro, Inc.
Hasbro, Inc. (NASDAQ: HAS) is a branded play company dedicated to fulfilling the fundamental need for play for children and families through the creative expression of the Company's world class brand portfolio, including TRANSFORMERS, MONOPOLY, PLAY-DOH, MY LITTLE PONY, MAGIC: THE GATHERING, NERF and LITTLEST PET SHOP. From toys and games, to television programming, motion pictures, digital gaming and a comprehensive licensing program, Hasbro strives to delight its global customers with innovative play and entertainment experiences, in a variety of forms and formats, anytime and anywhere. The Company's Hasbro Studios develops and produces television programming for more than 170 markets around the world, and for the U.S. on Hub Network, part of a multi-platform joint venture between Hasbro and Discovery Communications (NASDAQ: DISCA, DISCB, DISCK). Through the company's deep commitment to corporate social responsibility, including philanthropy, Hasbro is helping to build a safe and sustainable world for future generations and to positively impact the lives of millions of children and families every year. It has been recognized for its efforts by being named one of the "World's Most Ethical Companies" and is ranked as one of Corporate Responsibility Magazine's "100 Best Corporate Citizens." Learn more at www.hasbro.com.
Scientific Games Corporation:
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Scientific Games Forward-Looking Statements
In this press release, Scientific Games ("the Company") makes "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as "may," "will," "estimate," "intend," "continue," "believe," "expect," "anticipate," "should," "could," "potential," "opportunity," or similar terminology. Forward-looking statements may contain expectations regarding activities, financial position, operations, synergies and other results following our acquisition of WMS. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things: competition; material adverse changes in economic and industry conditions; technological change; retention and renewal of existing contracts and entry into new or revised contracts; effect of indebtedness on our operations and financial condition; availability and adequacy of cash flows to satisfy obligations and indebtedness or future needs; protection of our intellectual property; ability to license third party intellectual property; intellectual property rights of others; security and integrity of software and systems; reliance on information technology systems; laws and government regulation, including those relating to gaming licenses, permits and operations; inability to identify, complete and integrate future acquisitions; inability to benefit from, and risks associated with, strategic equity investments and relationships; inability of our joint venture to meet the net income targets or otherwise to realize the anticipated benefits under its private management agreement with the Illinois Lottery; inability of our joint venture to meet the net income targets or other requirements under its agreement to provide marketing and sales services to the New Jersey Lottery or otherwise to realize the anticipated benefits under such agreement (including as a result of a protest); failure to realize the anticipated benefits related to the award to our consortium of an instant ticket concession in Greece; the seasonality of our business; disruption of our current plans and operations in connection with our acquisition of WMS; failure to achieve the intended benefits of the WMS acquisition, including due to the inability to realize synergies in the anticipated amounts or within the contemplated time-frames or cost expectations, or at all; inability to identify and capitalize on trends and changes in the lottery and gaming industries, including the potential expansion of regulated gaming via the internet; inability to enhance and develop successful gaming concepts; slow growth of gaming jurisdictions or the casino industry; decline in the replacement cycle of gaming machines; consolidation or ownership changes in the casino industry; dependence on suppliers and manufacturers; liability for product defects; fluctuations in foreign currency exchange rates and other factors associated with international operations; influence of certain stockholders; dependence on key personnel; failure to perform under our contracts; resolution of pending or future litigation; labor matters; and stock price volatility. Additional information regarding risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated in forward-looking statements is included from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K filed with the SEC on March 12, 2013 and in our subsequent periodic reports. Forward-looking statements speak only as of the date they are made and, except for the Company's ongoing obligations under the U.S. federal securities laws, the Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
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