Scientific Games to Provide Instant Tickets and Cooperative Services to Loteria Electronica Internacional Dominicana S.A. in the Dominican Republic
NEW YORK, May 21, 2013 /PRNewswire/ -- Scientific Games Corporation (Nasdaq: SGMS) today announced that it has signed an instant ticket and cooperative services contract with Loteria Electronica Internacional Dominicana S.A. (LEIDSA), the largest electronic lottery licensed by Loteria Nacional de la Republica Dominicana (The Dominican Republic National Lottery). Under the terms of the new contract, Scientific Games will supply instant lottery tickets and related cooperative services, including game design, a back office instant ticket system, marketing, training and support for inventory management and distribution. The seven-year contract, which begins in May 2013, includes an option for LEIDSA to extend the contract for an additional three years. Revenue to Scientific Games will be based on a price-per-thousand tickets basis along with a percentage of instant ticket retail sales for providing cooperative services.
LEIDSA operates traditional draw-based lottery games through a network of approximately 1,800 points of sale throughout the Dominican Republic, which has a population of 9.5 million people. Scientific Games will launch instant tickets for LEIDSA and will be the exclusive supplier for the term of the contract.
"We have a long history with LEIDSA and we are pleased to introduce instant tickets into their network of retailers using electronic validation," stated Lorne Weil, Chairman and Chief Executive Officer of Scientific Games. "LEIDSA is a well-known trusted brand with 15 years of experience in the Dominican Republic. This recognized brand and intimate understanding of the local marketplace, combined with our advanced technology and best practices, should set LEIDSA's instant ticket product apart in the Dominican Republic."
"Scientific Games was an integral partner in helping us launch draw-based lottery games when we began with just one lottery game and 250 sales outlets," said Pedro Alegria, President of Loteria Electronica Internacional Dominicana S.A. "Given our positive past experience, Scientific Games' impressive suite of instant ticket products and services, and its wealth of local knowledge and global expertise, we are confident we can provide an exciting new product to our players and a significant new revenue stream for LEIDSA."
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 enter into an agreement to provide marketing and sales services to the New Jersey Lottery (including as a result of the pending protest) or to meet the net income targets or other requirements under any such agreement or otherwise to realize the anticipated benefits under any such agreement; the seasonality of our business; 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 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