Atlanta, GA – September 23, 2014 – Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or the “Company”) today announced the successful completion of an integrated lottery gaming system conversion, including a player subscription technology platform, for the Maine State Lottery (“the Lottery”). The conversion was completed as part of a six-year agreement for the operation of an integrated lottery gaming system for instant and draw games. The new system features the Company’s Sciplay™ interactive technology which enables an internet-based player subscription program and V.I.P website. Under the gaming system contract, Scientific Games also provides the Maine State Lottery with the Company’s Cooperative Services Program (CSP) that integrates the Lottery’s instant game operations, including game design and production, marketing services, warehouse management, inventory control and retail distribution. The contract was awarded to Scientific Games following a competitive procurement and may be extended.
Scientific Games completed the conversion ahead of schedule in June 2014. The conversion was executed with uninterrupted operation of the Lottery’s gaming systems, including statewide instant game distribution, telecommunications network, software and new point-of-sale equipment for lottery retailers throughout Maine. The Company installed the Maine State Lottery’s first central gaming system in 1985, however, first began serving the Lottery as its instant game provider in 1975.
“Through collaboration and careful planning with our longtime partner, Scientific Games, the technology conversion was a success and the Maine State Lottery is poised and well-positioned for continued growth,” said Gregory Mineo, Director, Maine Bureau of Alcoholic Beverages and Lottery Operations. “With the new retailer equipment, the player subscription program and the instant product category management services provided through the CSP program, we can focus on driving maximum sales and profits for the State of Maine.”
Scientific Games installed a new communications network, a full suite of draw-based game systems and a range of new lottery equipment in nearly 1,300 retail locations. New WAVE™ terminals and ticket checkers were deployed, as well as Lottery InMotion™, a digital advertising and content management system that promote the Maine State Lottery games in-store at the retail point-of-sale. In addition, the Lottery’s draw games are available to adult players within the state through a new internet-based subscription program powered by the Company’s award-winning Sciplay technology. Scientific Games also launched the Lottery’s VIP website and is providing additional marketing services.
“We are proud to continue our collaboration with the Maine State Lottery. In the more than three decades that we have been their trusted partner, the Lottery’s revenue has experienced continued growth.” said Pat McHugh, President, North America Lottery Systems for Scientific Games. “Our focus is aligned with the Lottery’s mission to responsibly maximize revenue growth to generate additional funds for the state and the local businesses that depend on lottery sales.”
In fiscal year 2013, the Maine State Lottery had total sales of more than $230 million, including over $166 million in instant game sales.
About the Maine State Lottery
The Maine State Lottery is proud of its commitment in providing the citizens of Maine with fun and exciting entertainment through the complete distribution and sales of Tri State Megabucks Plus, Powerball, Mega Millions, Hot Lotto, Lucky for Life, Tri-State Pick 3 and Pick 4 and an extensive array of instant lottery tickets.
The Maine State Lottery was established in 1974 by Maine voters in a statewide referendum. In 2004, Maine joined the multi-jurisdictional jackpot game, Powerball; in 2009, Maine joined the multi-jurisdictional jackpot game, Hot Lotto; on May 9, 2010, Maine joined the multi-jurisdictional jackpot game, Mega Millions; and on March 3, 2012 Maine joined the New England Regional Game Lucky for Life. Each year, millions of dollars are returned to players in prize money. Additionally, Maine small businesses receive millions of dollars in commissions and bonuses for selling lottery products, and the State’s General Fund received more than $50 million to support essential programs and services.
About Scientific Games
Scientific Games Corporation is a leading developer of technology-based products and services and associated content for worldwide gaming and lottery markets. The Company’s portfolio includes instant and draw-based lottery games; electronic gaming machines and game content; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and social, mobile and interactive content and services. For more information, please visit: http://www.scientificgames.com.
Company Contacts Investor Relations:
Mollie Cole (773) 961-1194
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,” 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 and reductions in or constraints on capital spending by gaming or lottery operators; slow growth of new gaming jurisdictions; slow addition of casinos in existing jurisdictions; declines in the replacement cycle of gaming machines; ownership changes and consolidation in the casino industry; opposition to legalized gaming or the expansion thereof; inability to adapt to, and offer products that keep pace with, evolving technology; inability 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 lottery and gaming industries, including the expansion of interactive gaming; dependence upon key providers in our social gaming business; inability to retain or renew existing contracts or enter into new contracts, or less favorable modifications to existing contracts; level of our indebtedness; unavailability or inadequacy of cash flows to satisfy obligations or future needs; 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 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 complete and integrate future acquisitions, including the pending acquisition of Bally Technologies, Inc. (“Bally”) due to the failure to obtain the required approvals or debt financing or otherwise; litigation related to the pending Bally acquisition; disruption of our current plans and operations as a result of the pending Bally acquisition; costs, charges and expenses related to the pending Bally acquisition; the failure to realize the intended benefits of the pending 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; 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.