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Scientific Games to Continue as Long-Time Instant Game Provider to Massachusetts Lottery

Lottery Perennially Ranked No. 1 in World for Instant Game Per Capita Sales


News provided by

Scientific Games Corporation

Jul 31, 2015, 09:05 ET

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LAS VEGAS and ATLANTA, July 31, 2015 /PRNewswire/ -- Scientific Games Corporation  ("Scientific Games" or the "Company") today announced it has signed a one-year extension to its instant products contract with the Massachusetts Lottery ("the Lottery") under which the Company will supply the Lottery with instant games, game design and marketing services. The Lottery and Scientific Games launched the world's first secure instant lottery game together in 1974, and the Company has been the primary instant game supplier to the Lottery since 1987. Scientific Games will continue to provide instant games and services to the Lottery through October 2016. For more than 40 years, the Massachusetts Lottery has ranked first in the world for instant game per capita sales (La Fleur's 2015 Almanac).

Michael Sweeney, Interim Executive Director, Massachusetts Lottery, said, "Our partnership with Scientific Games over the last four decades has helped the Massachusetts Lottery grow to become one of the most successful lotteries in the world. This partnership has greatly contributed to our ability to introduce innovative instant products that appeal to our players and generate critical local aid for cities and towns across Massachusetts." The lottery has posted record-breaking instant product sales for four consecutive years. 

"We are honored to continue our longtime relationship with the No. 1 lottery in the world for instant games. Our work together has helped establish global best practices for lottery instant products," said John Schulz, Senior Vice President, Instant Products for Scientific Games. "We look forward to continuing our collaboration and to implementing findings from our recent cross-jurisdictional player segmentation study with the Lottery to provide entertainment for today's lottery players and help drive revenue for the state." In addition to the design, programming and production of instant games, Scientific Games provides the Lottery with marketing services.

In 1974, Massachusetts was the first U.S. state lottery to sell $1 instant games as an alternative to the weekly jackpot game. Last year, the Lottery launched its first $30 instant game. In fiscal year 2015, the Massachusetts Lottery generated more than $5 billion in retail sales for the first time in its 44-year history, including over $3.5 billion in instant game sales.

About Scientific Games

Scientific Games Corporation (NASDAQ: SGMS) is a leading developer of technology-based products and services and associated content for worldwide gaming, lottery and interactive markets. The Company's portfolio includes gaming machines, game content and systems; table games products and utilities; instant and draw-based lottery games; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and interactive content and services. For more information, please visit www.scientificgames.com.  

About Massachusetts Lottery

The Massachusetts Lottery introduced the world's first instant ticket product, a $1 ticket named The Instant Game, in May 1974 – a move that revolutionized the lottery industry and established Massachusetts as a lottery innovator. In the 41 years since, the Massachusetts Lottery has grown to be the world's leader in instant ticket sales, generating over $3.3 billion annually.

Company Contacts
Investor Relations:
Bill Pfund   (847) 785-3167

Media Relations:
Mollie Cole   (773) 961-1194

Lottery Communications:
Therese Minella   (770) 825-4219

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," "plan," "continue," "believe," "expect," "anticipate," "target," "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 bankruptcies of, or credit risk relating to, customers; limited growth from new gaming jurisdictions, slow addition of casinos in existing jurisdictions and declines in the replacement cycle of existing 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 regulations, 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 (or in connection with any termination thereof), (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 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 Bally acquisition or the WMS acquisition, including due to the inability to successfully integrate such acquisitions or realize synergies in the anticipated amounts or within the contemplated timeframes or cost expectations, or at all; litigation relating to the Bally acquisition; disruption of our current plans and operations in connection with the Bally acquisition and the WMS acquisition (including in connection with the integration of Bally and WMS), 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 and the WMS acquisition; inability to complete or successfully integrate future acquisitions; 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 risks relating to product defects or other claims relating to products; 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 the Company's current reports on Form 8-K, quarterly reports on Form 10-Q and its latest annual report on Form 10-K filed with the SEC on March 17, 2015 (including under the headings "Forward Looking Statements" and "Risk Factors"). 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

Related Links

http://www.scientificgames.com

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