Scientific Games Announces its Consortium Signs the Greek State Lotteries' Concession Agreement
NEW YORK, July 30, 2013 /PRNewswire/ -- Scientific Games Corporation (Nasdaq: SGMS) today announced that the Hellenic Republic Asset Development Fund has signed a 12-year concession agreement with the consortium in which Scientific Games Global Gaming S.a.R.l, a subsidiary of Scientific Games, is a participant, for the exclusive rights to the production, operation, circulation, promotion and management of the Greek State Lotteries.
The consortium, incorporated as Hellenic Lotteries S.A., is principally comprised of Scientific Games, and subsidiaries of OPAP S.A. (ATH: OPAP) and Intralot S.A. (ATH: INLOT).
The concession will cover current and future instant and passive ticket lotteries which are conducted using physical tickets that will be sold through traditional retail outlets, street vendors and through the internet. Operations under the new concession are subject to various regulatory approvals, including Greek parliamentary approval.
Scientific Games has a 16.5% equity interest in the consortium and will have exclusive responsibility for instant ticket design and production. Scientific Games will also be responsible for advisory services applicable to all lottery tickets included in the concession. The consortium will pay an upfront payment of €190 million and will be responsible for a monthly fee equal to a percentage of gross gaming revenues.
"We are excited to have a signed concession agreement and to being one step closer to re-launching the instant ticket product in Greece. This consortium provides significant resources in terms of capital, talent and entertaining products to help generate significant incremental revenue for the Greek government and brings world class lottery products to the people of Greece," said A. Lorne Weil, Chairman and Chief Executive Officer of Scientific Games.
In 2011, OPAP generated €4.4 billion in total lottery retail sales in Greece, representing approximately €386 in per capita sales, making it the third largest lottery in the world in terms of per capita sales based on data provided by La Fleur's. The instant ticket lottery has been inactive since 2003.
About Scientific Games
Scientific Games Corporation is a global leader in providing customized, end-to-end gaming solutions to lottery and gaming organizations worldwide. Scientific Games' integrated array of products and services includes instant lottery games, lottery gaming systems, terminals and services, and internet applications, as well as server-based interactive gaming terminals and associated gaming control systems. For more information, please visit our website at www.scientificgames.com.
Cindi Buckwalter, Investor Relations
In this press release, 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. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of 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; availability and adequacy of cash flows to satisfy obligations and indebtedness or future needs; protection of intellectual property; security and integrity of software and 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; failure of our Northstar Illinois joint venture to meet the net income targets or otherwise to realize the anticipated benefits under its private management agreement with the Illinois Lottery; failure of our Northstar New Jersey 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); the seasonality of our business; failure to receive the required approvals related to the award to our consortium of an instant ticket concession in Greece on a timely basis or at all, or otherwise to realize the anticipated benefits in connection with such concession; failure to complete the pending acquisition of WMS Industries Inc. ("WMS") on a timely basis or at all, including due to the inability to obtain the gaming regulatory approvals required to complete the acquisition; disruption of our current plans and operations in connection with the WMS acquisition; 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; 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 under the heading "Risk Factors" in the Company's Annual Report on Form 10-K filed with the SEC on March 12, 2013 and in its 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.
SOURCE Scientific Games Corporation