Scientific Games Selects Las Vegas as Location for Global Headquarters and Primary Gaming Manufacturing Operation
LAS VEGAS, Jan. 26, 2015 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company") announced today that the Company is relocating its global corporate headquarters and establishing its Gaming Division's primary U.S. manufacturing operations at its existing facilities in Las Vegas, Nevada. Effective immediately, Scientific Games' global headquarters is located at: 6650 South El Camino Road, Las Vegas, NV 89118.
"Selecting Las Vegas as our global headquarters is a natural step in the corporate evolution of Scientific Games," said Gavin Isaacs, President and Chief Executive Officer. "Las Vegas is a diverse, cosmopolitan city in business friendly Nevada where we have strong roots and an extensive and growing employee base. This move will allow us to stay closely connected to our worldwide base of gaming, lottery and interactive customers.
"Equally important to our continued operating success is maintaining the continuity of our major operating divisions. To that end, the Company's Bally and Shuffle Master gaming development and support operations will continue to be based in Las Vegas, while our significant WMS game development, engineering and other gaming support operations, as well as our Interactive Division, will continue to be based at our Chicago Tech Campus. The operational headquarters of Scientific Games' Lottery Division will remain in Alpharetta, Georgia."
Reflecting the Company's commitment to rapidly implement identified integration plans that are expected to drive increased efficiency and cost synergies, Scientific Games has begun to transition the WMS manufacturing operations from Waukegan, Illinois, to Las Vegas. To ensure customer needs are seamlessly maintained throughout the transition, production plans include enhancing the Company's Las Vegas operations before scaling back manufacturing operations at the Waukegan facility. Scientific Games expects all production to be transferred to the Las Vegas facilities by the summer of 2015 and anticipates closing the Waukegan facility before the end of 2015.
"It is great news for Nevada that Scientific Games, an industry leader in gaming, lottery and interactive entertainment and technology, has selected Las Vegas as its new global headquarters," stated Governor Brian Sandoval. "The relocation of the Company's manufacturing operations and corporate office to Las Vegas means hundreds of good-paying jobs for the people of Clark County and our state in the years to come. As we work together to grow and diversify the Nevada economy, I am appreciative that Gavin Isaacs and his executive team recognized the advantage of doing business in our great state."
Thomas Skancke, CEO of the Las Vegas Global Economic Alliance (LVGEA), said "Scientific Games' bold move to establish global headquarters in business friendly Las Vegas will help LVGEA realize our goal to make the region a global business destination, while positioning Nevada as the gaming capital of the world. We look forward to working with the company as it continues to grow and thrive in Las Vegas."
The cost synergies arising from the manufacturing consolidation and the associated costs of transferring production and corporate functions to Las Vegas are included in the Company's previously disclosed estimate of $235 million of expected annual cost synergies from the Company's acquisition of Bally Technologies, Inc. by the end of 2016 and associated one-time costs to achieve the synergies of $80 million.
About Scientific Games
Scientific Games Corporation (NASDAQ: SGMS) is a leading developer of technology-based products, services and entertainment content for the worldwide gaming and lottery markets. The Company's portfolio includes instant and draw-based lottery games; server-based lottery and gaming systems; electronic gaming machines, game content and systems; table games products and utilities; sports betting technology; loyalty and rewards programs; and social, mobile and interactive content and services. For more information, please visit www.scientificgames.com.
Company Contacts
Investor Relations:
Scientific Games: Bill Pfund +1 847-785-3167
Vice President, Investor Relations
[email protected]
Media Relations:
Scientific Games: Mollie Cole +1 773-961-1194
Director, Corporate Communications
[email protected]
Forward-Looking Statements
In this press release, Scientific Games 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," "goal," or similar terminology. 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; U.S. and international economic and industry conditions, including declines in or slow growth of lottery retail sales or gross gaming revenues, reductions in or constraints on capital spending by gaming or lottery operators and credit risk relating to customers; slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions and declines in the replacement cycle of gaming machines; ownership changes and consolidation in the casino industry; opposition to legalized gaming or the expansion thereof; ability to adapt to, and offer products that keep pace with, evolving technology; ability to develop successful gaming concepts and content; laws and government regulation, including those relating to gaming licenses and environmental laws; inability to identify and capitalize on trends and changes in the gaming and lottery industries, including the expansion of interactive gaming; dependence upon key providers in our social gaming business; retention and renewal of existing contracts or entry into new or revised contracts; level of our indebtedness, higher interest rates, availability and adequacy of cash flows and liquidity to satisfy obligations or future needs, and restrictions and covenants in our debt agreements; protection of our intellectual property, ability to license third party intellectual property, and the intellectual property rights of others; security and integrity of our software and systems and reliance on or failures in our information technology systems; natural events that disrupt our operations or those of our customers, suppliers or regulators; inability to benefit from, and risks associated with, strategic equity investments and relationships, including (i) the 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, (ii) the 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) and (iii) failure to realize the anticipated benefits related to the award to our consortium of an instant lottery game concession in Greece; failure to achieve the intended benefits of the acquisition of WMS Industries Inc. ("WMS"), 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 complete future acquisitions; inability to successfully integrate future acquisitions; litigation relating to the Bally Technologies, Inc. ("Bally") acquisition; disruption of our current plans and operations in connection with the Bally acquisition, (including in connection with the integration of Bally), including departure of key personnel or inability to recruit additional qualified personnel or maintain relationships with customers, suppliers or other third parties; costs, charges and expenses relating to the Bally acquisition; inability to successfully integrate Bally (including SHFL entertainment, Inc. and Dragonplay Ltd.); failure to realize the intended benefits of the Bally acquisition, including the inability to realize the anticipated synergies in the anticipated amounts or within the contemplated time-frames or cost expectations, or at all; incurrence of restructuring costs, revenue recognition standards and impairment charges; fluctuations in our results due to seasonality and other factors; dependence on suppliers and manufacturers; risks relating to foreign operations, including fluctuations in foreign currency exchange rates and restrictions on the import of our products; dependence on our employees; litigation and other liabilities relating to our business, including litigation and liabilities relating to our contracts and licenses, our products and systems, our employees, intellectual property and our strategic relationships; influence of certain stockholders; and stock price volatility. Additional information regarding risks, 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 our filings with the SEC, including under the heading "Risk Factors" in our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made and, except for Scientific Games' ongoing obligations under the U.S. federal securities laws, Scientific Games 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
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