Back to News

Massachusetts Lottery Extends Primary Instant Games Contract with Scientific Games

Download

pdf, 170 kb

Sep 12, 2016

LAS VEGAS and ATLANTA – September 12, 2016Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or the “Company”) announced today that its nearly 30-year collaboration with the Massachusetts Lottery (“Lottery”) will continue another year through an extension of its existing contract as primary instant game provider. The Company designs and produces instant games and provides marketing services for the Lottery, perennially ranked first in the world for instant game per capita sales (La Fleur’s Almanac). Celebrating five straight years of record-breaking instant game sales, the Massachusetts Lottery has increased sales 19 percent in the product category since 2010 through its work with Scientific Games.

Michael Sweeney, Executive Director of the Massachusetts Lottery, said, “The incredible success we have had over the years with instant games is the result of team work between the Lottery, Scientific Games and our network of retail partners across the state. Through this extension of our work with Scientific Games, we are moving forward with the Lottery’s mission to grow retail sales and deliver funding to every city and town in the state.”

The Lottery recently announced $986.9 million in net profits in FY 2016 to benefit the Commonwealth of Massachusetts, the largest sum in its history. Instant games represented 69 percent of the Lottery’s retail sales in FY2016.

John Schulz, Senior Vice President Instant Products for Scientific Games, said, “We are extremely proud of what we have accomplished together. The Massachusetts Lottery is the best in the world when it comes to instant game sales. Many of the lottery industry’s best practices have been created and fine-tuned through our work in Massachusetts. We could not be more honored to be a part of this legendary success.”

Scientific Games creates the games that account for 76 percent of instant game retail revenues in the U.S. The Company supplies 23 of the world’s top 25 lotteries ranked by instant game per capita sales. Scientific Games developed the world’s first secure instant game in 1974. Today, with operations on six continents, the Company provides lottery games, services, systems and retail technology to more than 150 lotteries globally.

© 2016 Scientific Games Corporation. All Rights Reserved. All ® notices signify marks registered in the United States.

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.