Scientific Games Wins Five-Year Contract for Arizona Lottery's Integrated Lottery Gaming System

Nov 05, 2015, 08:45 ET from Scientific Games Corporation

LAS VEGAS and ATLANTA, Nov. 5, 2015 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company") today announced that its wholly-owned subsidiary Scientific Games International, Inc. ("SGI") was awarded a new contract to provide an integrated lottery gaming system to the Arizona Lottery (the "Lottery"). Under the contract, the Company will provide facilities management services for the Arizona Lottery's central computer systems, software, data center operations, retailer telecommunications network, retail point-of-sale and player self-service technology and peripherals, in-store digital advertising content system, mobile applications and marketing services as well as technical and marketing staff support. The effective date of the agreement is August 31, 2015 and will remain in effect for five years after the date on which the Company completes installation, and obtains the Lottery's acceptance of the gaming system.

The Arizona Lottery's five-year contract with Scientific Games, which was awarded after a competitive procurement process, will replace a competitor's system and is expected to begin on or about August 31, 2016 and may be extended by the Lottery for up to an additional five years. The Lottery's total retail sales were $750 million (USD) in fiscal year 2015.

Arizona Lottery Executive Director, Tony V. Bouie, said, "The Arizona Lottery has aggressive growth goals. Scientific Games, as an industry leader in innovation, gives us the best opportunity for significant retail sales growth in an ever-changing environment."

Scientific Games began providing instant games to the Arizona Lottery at the Lottery's inception in 1981 and has provided instant games and licensed properties to the Lottery throughout the years. The Company proposed a comprehensive suite of innovative products and services that focus on supporting the Arizona Lottery's strategic plans to meet evolving consumer needs and maximize total lottery sales and profits in the coming years.

Pat McHugh, Senior Vice President, North American Lottery Systems for Scientific Games, said, "The Arizona Lottery has worked hard to establish a very strong brand with consumers in the state for more than three decades. Under our instant products contract with the Lottery, Scientific Games has been a part of their remarkable success growing instant game sales in Arizona. We appreciate the continued trust in our products and services, and we look forward to also innovating with the Lottery on their draw game portfolio to help drive total sales and maximize profits for the Lottery and their retailers."

Scientific Games provides products, technology and services to more than 150 lotteries worldwide, including North America, South America, Europe, Asia and Australia.

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 us at

About Arizona Lottery

The Arizona Lottery operates entirely from the revenue it generates through the sale of its products; it doesn't receive any General Fund dollars from the State. Proceeds from sales of Lottery tickets — nearly $3.4 million per week, fund a variety of state programs. Since July 1981, the Arizona Lottery has paid out more than $6.2 billion in prizes to players, more than $3.3 billion in net funding to the state and more than $735 million in commissions to retailers. Learn more at

Company Contacts

Investor Relations: Bill Pfund   1-702-532-7663

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 or asset write-down 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 payment of dividends from earnings, restrictions on the import of products and financial instability, including the potential impact to our instant lottery game concession or VLT lease arrangements resulting from the recent economic and political conditions in Greece; dependence on our key 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