Scientific Games

Dec 16, 2016

LAS VEGAS and ATLANTA – December 16, 2016 –Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or the “Company”) today announced that it won a new, six-year instant games contract from the Kansas Lottery (“the Lottery”). The Company will provide the Lottery with instant game design, production and marketing support under the agreement, which began September 13, 2016 and may be extended for up to four years. Scientific Games currently provides the Lottery with unique instant games players love such as integrated holographic games, and Scratch My Back® games that offer additional play opportunities on the back of the ticket. The Company also provides the Lottery with popular licensed brands for its game portfolio, including AMC’s THE WALKING DEAD®, MONOPOLY™ and MAJOR LEAGUE BASEBALL®.

Terry Presta, Executive Director, Kansas Lottery, said, “We look forward to working closely with Scientific Games to bring even more innovative and entertaining games to Kansans. We are excited to collaborate with the world’s largest supplier of lottery instant games on game planning strategies that will help us continue the excellent growth we are experiencing in this product category.”

In the Lottery’s fiscal year 2016, which ended June 30, 2016, the Kansas Lottery experienced $272.2 million in retail sales including $164.6 million in instant games, a 6.7 percent increase over the prior fiscal year. Scientific Games and its legacy companies have supplied the Lottery with instant games since its start up in 1987.

John Schulz, Senior Vice President of Instant Products for Scientific Games said, “We look forward to furthering our relationship with the Kansas Lottery with new product offerings. We will continue to offer insights from our global player research and more than 40 years of instant game best practices to help drive revenue and net proceeds for the State of Kansas and its beneficiaries.”

Currently, Scientific Games supplies more than 70 percent of lottery instant games in the U.S. and provides games, technology and services to more than 150 lotteries worldwide, including nearly every North American lottery.

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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 www.scientificgames.com.

Lottery Communications
Therese Minella +1 770-825-4219

Corporate Communications
Susan Cartwright +1 702-532-7981

Investor Relations
Bill Pfund +1 702-532-7981

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. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. 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 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 gaming industry; opposition to legalized gaming or the expansion thereof; inability to adapt to, and offer products that keep pace with, evolving technology, including any failure of our investment of significant resources in our R&D efforts; inability to develop successful products and services and capitalize on trends and changes in our industries, including the expansion of internet and other forms of interactive gaming; laws and government regulations, including those relating to gaming licenses and environmental laws; dependence upon key providers in our social gaming business; inability to retain or renew, or unfavorable revisions of, existing contracts, and the inability to enter into new contracts; level of our indebtedness, higher interest rates, availability or adequacy of cash flows and liquidity to satisfy indebtedness, other obligations or future cash needs; inability to reduce or refinance our indebtedness; restrictions and covenants in debt agreements, including those that could result in acceleration of the maturity of our indebtedness; protection of our intellectual property, inability to license third party intellectual property, and the intellectual property rights of others; security and integrity of our products and systems and reliance on or failures in information technology and other systems; challenges or disruptions relating to the implementation of a new global enterprise resource planning system; failure to maintain internal control over financial reporting; 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; failure to achieve the intended benefits of our acquisitions; incurrence of restructuring costs; implementation of complex revenue recognition standards or other new accounting standards; changes in estimates or judgments related to our impairment analysis of goodwill or other intangible assets; 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, restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability, including the potential impact to our business resulting from the affirmative vote in the U.K. to withdraw from the EU, and the potential impact to our instant lottery game concession or VLT lease arrangements resulting from the recent economic and political conditions in Greece; changes in tax laws or tax rulings, or the examination of our tax positions; dependence on key 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 (including labor disputes), intellectual property, environmental laws 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 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 February 29, 2016 (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.

Kansas Lottery Awards Business to Scientific Games, World's Largest Supplier of Instant Games